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Zee Entertainment Enterprises net jumps 21% on strong ad revenues

Thursday, 22 May 2014 - 6:45am IST | Place: Mumbai | Agency: DNA

Zee Entertainment Enterprises Ltd has reported a 21.14% year-on-year increase in consolidated net profit at Rs 217.58 crore for the fourth quarter ended March 31, 2014.

Consolidated total income during the reporting quarter rose 20.17% at Rs 1,158.81 crore over the year-ago period.

"Indian economy continued to grow at a sluggish pace of less than 5% in fiscal 2014. This has put pressure on the overall advertising spends. Growth is expected to pick up. We expect that despite a slow economy, television media industry will continue on its double-digit growth path," Zee chairman Subhash Chandra said.

The company's total consolidated revenue from advertising grew 21.52% to Rs 582.36 crore, while revenues from subscription rose to Rs 463.54 crore.

During the quarter, domestic subscription revenues stood at Rs 334.4 crore, while international subscription revenues were Rs 129.2 crore.

For the full fiscal 2014, domestic subscription revenues were Rs 1,318.4 crore, recording a growth of 13.2% over last fiscal; while the international subscription revenues were Rs 483.9 crore, recording a growth of 5.5% over last fiscal.

Operating profit (Ebitda) for the quarter grew 28.6% stood at Rs 311.6 crore over the corresponding quarter last fiscal. Ebitda margin expanded to 26.9% in the reporting quarter from 25.1% in the year ago period.
Consolidated operating revenues for the quarter stood at Rs 1,158.8 crore, a growth of 20.2% as compared with the corresponding quarter last fiscal.

Punit Goenka, managing director and chief executive officer, Zee, said, "Fiscal 2014 has been a good year both on operating as well as financial parameters. Consolidated revenues increased 19.5% to Rs 4,420 crore driven by strong growth in advertising, domestic subscription and syndication revenues."

On the launch of new Hindi channel Zindagi on June 23, 2014, Goenka said Zee will create a category of Premium Mass in the GEC (general entertainment channel) category in India offering alternative fiction content.

"The content of the channel echoes our brand philosophy of Vasudhaiva Kutumbakam. It will offer handpicked stories suitable for Indian sensibilities. It will start with content from Pakistan, written by award winning writers and we will be sourcing content from Turkey, Egypt and Latin America."




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