Zee Group net profit at Rs 709m, up 36 per cent

MUMBAI: Zee Telefilms reported third quarter consolidated revenues of Rs 3,075 million (up 10.2 per cent) and the consolidated operating profit has grown 13.7 per cent to Rs 1,077 million. The board of directors declared the unaudited consolidated financial results of Zee Telefilms and its subsidiaries at a meeting held today.

Zee group has posted a net profit of Rs 708.8 million (consolidated) for the quarter ended 31 December 2002, (up 36 per cent) compared to a net profit of Rs 521.1million in the quarter ended 31 December 2001. Total income of the group has also increased from Rs 2,957.6 million in the December quarter of 2001 to Rs 3,250.2 million in the quarter ended 31 December 2002.

However, Zee Telefilms has posted a net profit of Rs 221.90 million for Q3, (down seven per cent) compared to a net profit of Rs 239.10 million in the previous corresponding quarter, the Bombay Stock Exchange (BSE) website.

Total income of the media major has, however, increased from Rs 1,018.3 million in the December quarter of 2001 to Rs 1,411.3 million in the quarter ended 31 December 2002.

Zee's CMD Subhash Chandra was quoted as saying in an official release: "At the end of September, we announced that our priority objective was to streamline the organisational resources and to improve the programming content across businesses I am happy to state that we have a very focused team in place and our new programming initiatives have been well received across the businesses, whether it was Zee TV, Zee News, Zee Cinema or the Alphas."

"Clearly, the strength of our assets combined with the talent and commitment of our team has resulted in good performance. Despite a very tough advertising market due to the continued slowness of the consumer economy, we have been able to broadly maintain advertising revenues. Zee's subscription has made significant strides, as affirmed by us in the past also, both from the domestic and international markets, with a strong increase of 43.2 per cent over the corresponding period last year," Chandra says.

"At Zee, we remain positive of our ability to convert the emerging opportunities into operating profits, especially with conditional access system (CAS) now becoming a reality. This is poised to power subscription revenues, till now suffering from channel infirmities. The company is pursuing with determination its target of creating value for all its shareholders," Chandra adds.

On the BSE, the Zee Telefilms scrip opened at Rs 82.90 and closed the day at Rs 86.85 (up 4.76 per cent). The trading witnessed a volume of 2,223,366 shares. On the National Stock Exchange (NSE), the scrip opened at Rs 82.80 and closed the day at Rs 87 (up 5.07 per cent). The total volumes traded were in excess of 8,699,439. Market sources add that a single bulk deal of 5 million shares. The EPS (earning per share) was placed at Rs 0.54 which gives a PE ratio of 160.83. 

Highlights of the results:

* Advertising revenue was Rs 1,710 million for the third quarter, a marginal decline of 2.4 per cent as compared to the corresponding period last fiscal.

* Subscription revenue was Rs 1,242 million, an increase of 42.7 per cent as compared to the corresponding period last fiscal.

* Domestic subscription revenue was Rs 378 million, an increase of 43.2 per cent as compared to the corresponding period last fiscal and 2.5 per cent as compared to the 2nd quarter ended 30 September 2002.

* Internal subscription revenue has grown by 34.7 per cent over the corresponding period 

* Operating profits increased by 13.7 per cent in the third quarter

Rs million

Third quarter

Third quarter

Per cent of total revenues

Per cent of total revenues



FY 2003


Ad revenues





Subs revenues





Other sales and services





Total revenues





Zee's advertising revenues (excluding ETC) have declined by 8.9 per cent as compared to the corresponding quarter last fiscal. The paid connectivity of Zee bouquet is 4.5 million homes. Zee Turner increased the price of the pay bouquet to Rs 50 wef January 2003 and the impact will result in a stronger growth in domestic pay-revenues during the fourth quarter. Zee is slated to have a tough Q4 due to the World Cup cricket 2003.

Zee's main expenses include transmission and programming costs, employee costs and administrative costs. The programming cost went up by 18 per cent due to higher pay channel costs at Siticable. However, programming cost in the content and broadcasting segment declined during the third quarter. The other costs have grown by a marginal 0.7 per cent.

Segment performance highlights:

* Thursday Premiere was a successful initiative

* The two new launches Astitva and Piya ka Ghar have been well received

* Zee Cinema continuous to maintain leadership in the movie segment. Ek ka teen Premiere promotion was successful

* Zee News surged strongly and regained market share in several geographic locations. It consistently managed to break leading stories with its Sabse Pehle initiative.

* Alpha channels continued to penetrate deeper into local viewership with an increased focus on local news coverage and customised programming.

* Zee continued to add to its subscriber base in its international operations. New subscribers were added in the US, Europe, Middle East and other parts of South east Asia.

Access highlights:

* Siticable serves 38 cities through 68 headends

* It is in the process of implementing HITS (headend in the sky) technology for distributing TV broadcast signals in the CAS regime.

* Zee estimates that broadcasters will be able to capture 50-55 per cent of the total consumer spend on TV (Rs 60 billion currently). MSOs (multi-service operators) would get a commission from broadcasters ranging between 15-20 per cent while cable operators would get a FTA fees and delivery margins from pay channels ranging between 20-25 per cent.

* HBO moved out of the distribution platform effective 1 January 2003 and CNBC joined the platform. Realty TV is likely to join the platform effective February 2003.

Latest Reads
CNNMoney new section will be about the fastest growing economy; MoneyStream app launched

MUMBAI: Attracting 1.8 million average monthly page views, witnessing a 37 per cent growth in video consumption and 16 per cent in unique browsers month-on-month from India in less than a year’s time is not smooth. In its ambitious plan of global expansion, CNN Digital is leaving no stone unturned...

Television TV Channels News Broadcasting
Content a 'Game of Thrones'; AT&T's control over HBO, Cartoon Network, Warner Bros faces regulatory lens

The global media landscape is resulting in a new juggernaut as an internet and cable behemoth yesterday purchased an entertainment conglomerate making the former unmatched in its size and reach to consumers through home broadband, smartphones, satellite television and a battery of movies and cable...

Television TV Channels English Entertainment
US$ 4.5 bn expected from IPL rights; SC recommends accounts scrutiny

The Supreme Court on Friday froze all financial transactions between the BCCI and state cricket associations by directing the apex body not to disburse any funds till it resolves to abide by the Justice RM Lodha panel recommendations on reforms by 3 December . The top court ordered that none of...

Television TV Channels Sports
TVS Tyres is co-presenter for Asian Champions Trophy 2016

Continuing its strong connect with sports, TVS Tyres has associated with Asian Champions Trophy 2016 by becoming the co-presenter. The Asian Champions Trophy is one of the premier hockey tournaments, a much sought after annual international competition promising some great hockey action. This...

Television TV Channels Sports
Q2-17: Zee Learn declares maiden interim dividend

The board of directors of the Essel group’s education company Zee Learn Limited (ZLL) have declared a first time ever dividend of 5 percent per equity share of Re 1 each for the quarter ended 30 September 2016 (Q2-17, current quarter).

Television TV Channels Factual & Documentary
Whether BARC action can stop unethical practices?

MUMBAI: Can businesses and industries practise their art of selling fairly although they have 'Fair Practices' training during academic courses, workshops and several ISO and other certifications? There seems to be the fear of the lawman, and not the law in India. If the traffic cop is watching,...

Television TV Channels Viewership
TV Superhighway: beIN, Yaddo, AfricaXP have joined us, says Magine CEO Ambuj Goyal

CANNES; Magine has secured partnerships with four of the industry’s most exciting sports, documentary and entertainment content providers. Partnerships with beIN, the international media group and owner of MIRAMAX; Yaddo, the new documentary streaming service headed up by former head of The BBC’s...

Television TV Channels Factual & Documentary
Colors emerges strong on strength of Naagin I & II

MUMBAI: One of the top rated shows Naagin Season 2 helped Colors reach a top-ranking position.

Television TV Channels GECs
Pakistan Broadcasters Association to oppose PEMRA Indian content ban

MUMBAI: The Pakistan Electronic Media Regulatory Authority (PEMRA) shocked both Pakistan and Indian broadcasters when it issued an order blanking out  all Indian content from Pakistan’s television channels on 19 October.

Television TV Channels GECs

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories