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MUMBAI:
Subhash Chandra-promoted Zee Entertainment Enterprises Ltd
(Zeel) has reportd a consolidated net profit of Rs 1.63 billion
for the fourth quarter ended 31 March, down 16 per cent from
Rs 1.93 billion in the corresponding quarter of previous year.
Consolidated
revenues in the fourth quarter were Rs 8.69 billion, up 9
per cent from Rs 7.95 billion from year ago.
A
media analyst said revenues were higher than estimated because
of the positive surprise on all fronts - ad revenues, domestic
subscription revenues, and higher than expected syndication
& other sales revenues.
The
consolidated operating profit (EBITDA) for the quarter was
down 28 per cent to Rs 1.60 billion, from Rs 2.22 billion
a year ago as its expenses rose 24 per cent. Zeel’s expenses
during the quarter rose to Rs 7.09 billion from Rs 5.73 billion
a year ago.
During
the quarter, Zeel’s advertising revenues stood at Rs
4.15 billion, showing a decline of 12 per cent. The company
clarified that in the fourth quarter of previous year, it
had more cricket properties in sports which had resulted in
higher advertising revenues. Loss from sports business was
Rs 588 mn in the fourth quarter and Rs 1.48 bn for the full
year.
“Advertising
revenues from non-sports businesses have increased, though
marginally. This is reflective of the overall weakness in
advertising spends,” Zeel said.
The
total subscription revenues for the quarter stood at Rs 4.02
billion, registering an increase of 30 per cent over the corresponding
quarter last fiscal. Domestic subscription revenues stood
at Rs 2.97
billion, while international subscription revenues were Rs
1.05 billion.
Zeel
said that domestic subscription revenues are not comparable
with the previous year because the fourth quarter includes
an amount of Rs 506 million representing 50 per cent share
of net revenues of MediaPro, when consolidated under joint
venture accounting. MediaPro is a joint venture between Zee
Turner and Start Den.
This amount of Rs 506 million considered in this quarter pertains
to nine month period from July 2011 to March 2012. Subscription
revenues for the quarter from international operations are
up by 1 per cent Q-o-Q from Rs 1.04 billion in Q3 FY12 to
Rs 1.05 billion in Q4 FY12.
Zeel
chairman Subhash Chandra said the slowdown in GDP growth has
had a greater impact on advertising spends during the year,
and advertising revenue growth has seen a much sharper slowdown.
Chandra
said, “FY2013 is expected to be a landmark year for the
television media industry. The industry is gearing up for
a big change with deadline for implementing Digital Addressable
System (DAS) in the four metros approaching on 30 June, 2012.
Digitisation will bring about improvements in addressability
and capacity, thereby, improving the quality of service to
consumers and creating a better financial model for all players
in the value chain.”
Zeel
board has recommended a dividend of Rs 1.50 per share.
Zeel
MD and CEO Punit Goenka said, “We are looking forward
to the implementation of digitisation which will significantly
improve transparency in the pay-TV ecosystem resulting in
more choice to the consumers, better quality of viewing and
better economies for all players. In fiscal 2012, 10.5 million
subscribers have adopted satellite based television services
via DTH, taking the gross DTH subscriber base to 44.6 million
strong.”
“During
the quarter, we have seen significant improvement in our operating
performance across all genres. The flagship channel, Zee TV,
has improved its market share noticeably. We are confident
that we would further enhance our market share through our
planned content lineup and continue to grow our business profitability
in a sustained manner.”
“In
line with our strategy of growth through focused disciplined
investments, we launched India's first and only OTT (over-the-top)
distribution platform, Ditto TV, with an aim to offer Live
TV Channels
and On Demand Video Content to consumers on multiple platforms
including mobile phones, tablets, laptops, desktops and connected
TVs. We have also launched some of our content offerings in
high definition format. Ten Golf is Zee’s latest premium
offering targeted at urban up-market audiences”, he added.
Speaking
about the outlook for the business, Goenka added, “While
the competitive intensity remains high in the Indian television
industry, we continue to make efforts towards further enhancing
our market share. Media Pro, our joint venture for subscription
revenues, has started on a good note and we are very confident
of a robust performance going forward. The impending digitization
will further be
able to create value for the business. Also, our content focused
approach, combined with better monetization of subscription
revenues, will contribute to Company delivering steady return
in the year ahead.”
For
the full year 2011-12, Zeel’s net profit stood at Rs
5.91 billion, down 6 per cent from Rs 6.25 billion in the
previous fiscal. The revenue stayed flat (up 1 per cent) to
Rs 30.41 billion, as against Rs 30.08 billion in the year-ago
period. Total expenses, jumped 5 per cent to Rs 23.01 billion,
from Rs 21.87 billion.
Shares
of Zeel ended the day unchanged at Rs 123.20 on BSE.
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