Zee consolidated net profit up 13% at Rs 779 mn

NEW DELHI: Zee Telefilms Limited today reported consolidated revenues of Rs 3,471 million (excluding Padmalaya) for the first quarter ended 30 June, representing a 24.5 per cent growth over the corresponding previous period.

The company’s consolidated net profit stood at Rs 779 million, signifying a growth of 12.6 per cent for the first quarter of FY 2006. The consolidated operating profit stood at Rs 998 million, representing a 1.8 per cent growth over the same period last year, excluding Padmalaya.

According to Zee Tele CMD Subhash Chandra, “We had a fairly good first quarter and we are set for a good performance in FY 2006.”

Pointing out that efforts to improve the quality of content have started showing results, Chandra said, “We have increased the GRPs of Zee channels over the previous year, while maintaining lead in Hindi movies, music and regional language channels.”

He added that the network has “gained momentum” and would “build on (the) success in the coming year.”

Advertisement revenue for the first quarter of FY 2006 stood at Rs 1,315 million, an increase of 16.7 per cent as compared to the corresponding period last fiscal.

Subscription revenue stood at Rs 1,734 million, signifying an increase of 13.3 per cent as compared to the corresponding period last fiscal.

Domestic subscription revenue, including DTH, was Rs 729 million for the first quarter ended June 30, 2005.

Commenting on the company’s performance, Zee Telefilms CEO Pradeep Guha said, “There is a clear trend of increasing viewership evident in our channels. We have simultaneously revamped our sales network reflected in improved results.”

Guha further added that of the several forthcoming attractions, Rabba Ishq Na Hove, a new prime time show launched on flagship Zee TV, shows immense promise. Some other future attractions, he pointed out, include Business Baazigar, a reality show for identifying entrepreneurial talent, and Kam Ya Jyada, an exciting game show with an imported format.

The company said in a statement that profit figures as reported above are after expensing of initial investments in new activities --- Zee Telugu, Zee Smile, Zee Sports and others --- amounting to Rs 147.5 million (4.3 per cent of consolidated revenues).

The numbers as published are after consolidating the financial of ETC Networks Limited (ETC) for the first quarter of FY 2006. However, this is without consolidating the financials of Padmalaya, since Zee has divested its stake in Padmalaya.

For a like to like comparison, the company said it has excluded the financials of Padmalaya from 1Q FY2005.

Also, to conform to industry practices, advertising revenue has been reported net of agency commission. Previous period figures are also reported on net advertising revenues to make them comparable.

The board of directors in its meeting held today has taken on record the unaudited consolidated financial results of Zee Telefilms Limited and its subsidiaries for the quarter ended 30 June.

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