|
MUMBAI:
Zee Entertainment Enterprises Limited (Zeel) on Tuesday said
its fourth quarter consolidated net profit is up 49 per cent
over the year-ago period on the back of strong advertising
growth and a surge in flagship Hindi general entertainment
channel Zee TV's ratings.
Net
profit in the quarter ended 31 March 2008 rose to Rs 1.04
billion, from Rs 699.2 million a year ago.
Consolidated
revenues stood at Rs 5.26 billion, representing a 37 per cent
growth. The consolidated operating profit also rose 37 per
cent to Rs 1.30 billion. Profit before tax for the fourth
quarter of fiscal 2008 was Rs 1.47 billion, up from Rs 1.06
billion.
The
financial results are after consolidating the figures of Taj
TV Limited (Taj) and ETC Networks Limited (ETC).
|
Fourth
quarter
|
%
Growth |
| (Rs
million) |
FY2008 |
FY2007 |
Y
o Y |
| Operating
Revenues |
5,260 |
3,844 |
36.8% |
| Expenditure |
3,957 |
2,893 |
36.7% |
| Operating
Income |
1,302 |
951 |
36.9% |
| Add:
Other Income |
435 |
177 |
145.7% |
| Depreciation |
54 |
56 |
(3.6)% |
| Finance
Expenses |
184 |
8 |
2200.5% |
| PBT
before exceptional items |
1,500 |
1,064 |
41% |
| Less:
Exceptional Item |
26 |
- |
- |
| Less:
Provision for Tax |
430 |
365 |
(17.8)% |
| Profit
After Tax |
1,044 |
699 |
49.3% |
| Minority
Interest |
120 |
95 |
- |
Commenting
on the results Zeel chairman Subhash Chandra said: "Zeel
has remained focused on its core strength of content offerings.
Viewership share for all its channels in respective genres
have improved. The operating performance of the company is
improved with a good finish to this fiscal year."
Zee
TV has particularly seen robust growth. Said Zeel whole time
director Punit Goenka, "Going forward, we are confident
of improving our viewership share further with higher investment
in programming content particularly in Afternoon Band and
Weekend Programs".
Elaborating
on the high points for the quarter, Zeel CEO Pradeep Guha
said, "For the year FY2008, our advertising revenues
grew 33 per cent, which is almost double the industry growth
rate, in our estimate. This is the second consecutive year,
where our advertising revenues have grown at twice the industry
growth rate and this has largely been possible because of
the robust all round performance of the Company."
Surge
in Revenues
Zee's
advertising revenues jumped to Rs 2.46 billion in the fourth
quarter, up 33.4 per cent in the year-ago period. For the
full fiscal, this went up 32.8 per cent to Rs 9.34 billion.
Subscription
revenues stood at Rs 2.07 billion, recording a 12 per cent
growth over the corresponding quarter last fiscal. For the
full fiscal, this went up 10.2 per cent to Rs 7.33 billion.
|
Fourth
Quarter |
%
of total revenues |
%
Growth |
| (Rs
million) |
FY2008 |
FY2007 |
FY2008 |
FY2007 |
Y
o Y |
| Advertising
revenue |
2,466 |
1,849 |
47% |
48% |
33.4% |
| Subscription
revenue |
2,071 |
1,849 |
39% |
48% |
12.0% |
| Other
sales and services |
723 |
146 |
14% |
4% |
394.5% |
| Total
Revenues |
5,260 |
3,844 |
100% |
100% |
31.9% |
Other
sales and services was Rs 723 million, a substantial increase
by 394.5 per cent over the corresponding quarter last fiscal,
due to higher syndication sales of Ten Sports and revenue
from Education Business.
Domestic
subscription revenues stood at Rs 986.7 million, a 15 per
cent growth over previous quarter of the current fiscal while
international revenues are Rs 1.08 billion.
The
revenues from DTH (direct-to-home) increased to Rs 187.5 million
for the fourth quarter, from Rs 175.5 million in the third
quarter of the current fiscal.
Expenditure
Zee's main expenses include cost of goods and operations,
employee cost and administrative and selling expenses.
The
following table sets forth the percentage of costs that each
type contributes to consolidated expenses for the third quarter
of FY2008 and FY2007.
|
Fourth
Quarter |
%
of total expenses |
%
Growth |
| (Rs
million) |
FY2008 |
FY2007
|
FY2008 |
FY2007 |
Y
o Y |
| Prog.
& operating cost |
2,192 |
1,632 |
56% |
56% |
34.3% |
| Employee
cost |
406 |
292 |
10% |
10% |
31.9% |
| Selling
& other expenses |
1,359 |
969 |
34% |
34% |
41.7% |
| Total
Expenses |
3,956 |
2,893 |
100% |
100% |
37% |
Segment
Performance
The table below presents Zee's fourth quarter performance
for FY2008 as compared to the FY2007 in the key segments.
|
Fourth
Quarter |
%
of total revenues |
| (Rs
million) |
FY2008 |
FY2007
|
FY2008 |
FY2007 |
| Content
and broadcasting |
5082.3 |
3747.5 |
96.6% |
97.5% |
| Education* |
177.2 |
96.3 |
3.4% |
2.5% |
| Less:
Inter-segment rev. |
- |
- |
- |
- |
| Total
Revenues |
5259.5 |
3843.8 |
100% |
100% |
Sports
business
The sports business revenues during the fourth quarter of
FY2008 was Rs 526.4 million, recording a growth of 10.5 per
cent over corresponding quarter last fiscal.
The
EBITDA for the fourth quarter of FY2008 stood at Rs 13 million
in comparison to a loss of Rs 331.6 million during the corresponding
quarter last fiscal year.
The
revenues for the full year was Rs 2.22 billion, recording
a growth of 11.15 per cent over previous fiscal 2007, whereas
losses for the full year reduced to Rs 249 million as against
losses of Rs 835.8 million in previous fiscal 2007.
| 
