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MUMBAI:
Subhash Chandra-owned Zee Entertainment Enterprises Ltd (Zeel)
reported a 17.2 per cent rise in consolidated net profit for
the quarter ended 30 September helped by a strong growth in
revenues. Its net profit on a standalone basis for the second
quarter, however, was down 42 per cent on a sharp rise in
expenses.
Zeel's
consolidated net profit in the second quarter was Rs 1.87
billion compared with Rs 1.59 billion a year earlier as its
operating revenues rose 33.8 per cent to Rs 9.53 billion compared
with Rs 7.12 billion a year earlier.
The
company's net profit on a standalone basis in the second quarter
was Rs 679 million, down from Rs 1.18 billion a year earlier
as rise in expenses far outstripped growth in operating revenues.
Its standalone operating revenues during the quarter was up
22 per cent at Rs 6.36 billion from a year earlier against
a 47 per cent rise in standalone expenses year-on-year at
Rs 5.40 billion.
The
company's standalone businesses include entertainment and
sports business in India.
CONDENSED
STATEMENT OF OPERATIONS
| (Rs
million) |
Second
Quarter
|
%Growth |
| |
FY2013
(Unaudited)
|
FY2012
(Unaudited)
|
YoY
|
| Operating
Revenues |
9,535
|
7,128 |
34% |
| Expenditure |
7,359
|
5,108 |
44% |
| Operating
profit (EBITDA) |
2,176
|
2,020 |
8% |
| Add:
Other Income |
260
|
289 |
-10% |
| Less:
Depreciation |
96
|
78 |
22% |
| Less:
Finance Cost |
23
|
10 |
138% |
| PBT
before exceptional items |
2,319
|
2,221 |
4% |
| Less:
Tax Expense |
444
|
621 |
-29% |
Less:
Short Provision for tax Earlier
Years |
|
|
|
Profit
After Tax for the Period
|
1,875
|
1,600 |
17% |
ZEEL's
revenues from sports business more than doubled to Rs 1.81
billion in the second quarter from Rs 881 million a year earlier.
Its revenues from businesses other than sports which include
a bouquet of entertainment channels was up 23 per cent at
Rs 7.72 billion in the second quarter compared with Rs 6.24
billion a year earlier.
The
company's consolidated advertising revenues at Rs 5.28 billion
were 33.7 per cent higher than a year earlier contributed
significantly by sports business, while subscription revenues
rose 35.7 per cent to Rs 3.95 billion from a year earlier.
Domestic subscription revenues stood at Rs 2.81, while international
subscription revenues were Rs 1.14 billion.
Zeel
said its consolidated operating profit for the second quarter
was Rs 2.17 billion, 7.8 per cent higher than a year earlier.
Its operating profit margin for the quarter was 22.8 per cent.
Zeel
chairman Subhash Chandra said. "This (second) quarter
the company has continued to build on the momentum set in
the first quarter. We look forward to continuing our investment
in the television media space and take advantage of the growth
opportunities ahead of us."
The
company expects television advertising spends to turnaround
after having been impacted this year by the economic slowdown.
"We
are confident of continued double digit growth of television
advertising spends over the next few years. At ZEE, we have
created a good portfolio of assets and will continue to make
prudent investments with a clear focus on returns over the
long term," said Zeel managing director and CEO Punit
Goenka.
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