Bucking the trend of a slow ad growth, Zee News Limited (ZNL)
posted a 45.4 per cent jump in third-quarter revenue over the
year-ago period, with regional channels driving the pace.
revenue stood at Rs 1.43 billion for the quarter ended 31 December
2008, sending signals that regional advertisers can come to the
rescue of channels that successfully target such audiences.
profit was up 18.38 per cent to Rs 151.27 million for the quarter
under review, as ZNL kept costs under control.
Zee Group chairman Subhash Chandra, "Our bouquet composition,
aggressive and innovative strategy and an ever cost-conscious
approach to business helped us achieve this feat - something seemingly
impossible for most other media organisations."
advertising revenues grew by 38.8 per cent to Rs 1.12 billion
while subscription earnings stood 46.4 per cent up to Rs 236 million
for the third quarter of the fiscal.
standalone net profit stood at Rs 153.71 million, up 19.7 per
cent from a year earlier. Revenue was up 45.78 per cent to Rs
1.39 billion for the quarter under review.
Says Zee News CEO Barun Das, "The existing businesses continued
to grow and recorded 23 per cent growth in operating revenues
while the same for new businesses was 333.3 per cent. This has
helped us outperform the market."
Telugu, Zee Kannada, Zee 24 Taas, Zee Tamil, Zee Talkies and Zee
24 Ghantalu (yet to launch), which are considered as 'New Businesses,'
have incurred an operating loss of Rs 394.83 million during the
nine-month period ended 31 December, 2008. The loss on Zee 24
Ghantalu (Telugu news channel) was Rs 9.26 million during the
company is critically reviewing the performance of its channels
and has announced the closure of Zee Gujarati from 30 April. Says
Chandra, "While we are strategically expanding our presence,
the channels which are not likely to make profit in the near future
have been critically reviewed by the company. The board has approved
the closure of Zee Gujarati with effect from 30 April, 2009. The
forthcoming UP news channel launch will be a key strategic expansion
along with other regional proliferation of our products and services."
Zee Akaash News Pvt. Ltd, a subsidiary of ZNL that operates Bengali
news channel 24 Ghanta, has incurred an operating loss of Rs 6.96
million during the nine-month period ended 31 December, 2008.