If anyone had doubts regarding the value of Zee TV's alliance with Metro-Goldwyn-Mayer, these numbers might be worth taking note of (Zee MGM is the English movie channel on the Zee TV platform). MGM has reported that the fourth quarter ended December 31, 2001, was the most profitable in the company's 77-year history.

An official release states that a 29 per cent increase in revenues to $375.5 million, a 76 per cent increase in EBITDA (earnings before interest, taxes, depreciation and amortisation) to $64.0 million and a 216 per cent increase in net income to $39.1 million led to the record quarterly results.

Earnings per share on a fully diluted basis increased to $0.16 from $0.06, even though there were fewer shares outstanding in last year's fourth quarter. These results were significantly higher than the previously issued earnings guidance of approximately $0.12 per share.

Vice-chairman and COO Chris McGurk said: "Our worldwide home entertainment and television operations produced record results in 2001 by aggressively leveraging both our successful new film content and MGM's massive film and television library."

Some financial highlights are:

1. Fourth quarter revenues increased 29 per cent to $375.5 million from $292.2 million in the fourth quarter of 2000.
2. Consolidated EBITDA was $64.0 million, an increase of 76% over the $36.3 million reported a year earlier.
3. Overall EBITDA, including $10.2 million of unconsolidated EBITDA from MGM Networks, was $74.2 million. Included in unconsolidated EBITDA was MGM's proportionate share of earnings from the four Rainbow Media Group Channels, reported on a three-month lag basis.
4.Net income rose to $39.1 million from $12.4 million.

Operational highlights include:
1. Worldwide film and television library revenues increased 27 per cent in the fourth quarter.
2. Worldwide home video revenues increased 57 per cent over the fourth quarter of 2000.
3. MGM Networks' international subscribers now total 34.8 million.
4. In January 2002, MGM Networks forged a new alliance with Orbit Satellite Television and Radio Network, the Middle East's leading digital satellite platform, to establish the MGM Movie Channel, a digital, 24-hour MGM-branded movie channel in the Middle East, set to launch in March 2002. This marks MGM's 15th international network built through equity partnerships.
5. MGM Worldwide Television Distribution entered into a two-year agreement with the Fox owned-and-operated stations for the syndication broadcast of "Stargate SG-1."
6. The company launched MGM Business Entertainment Group, a new division that will further leverage and promote MGM's massive film and television library.

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