Television

Zee Telefilms Q3 net profit down 17.4 per cent to Rs 317 million

MUMBAI: Zee Telefilms has reported a 17.4 per cent decline in net profit to Rs 317 million for the quarter ended 31 December 2005, as compared to Rs 384.2 million a year ago.

Total income, however, rose 34.09 per cent to Rs 2.40 billion, up from Rs 1.79 billion.

Zee Group's consolidated net profit saw a 64.1 per cent dip to Rs 310.3 million for the third quarter of the current fiscal, as compared to Rs 865.5 million a year ago. Total Income, though, grew 18.6 per cent to Rs 4.03 billion, up from Rs 3.40 billion.

The group's consolidated operating profit fell by 66.5 per cent to Rs 365 million over the same period last year. "The decline is caused by initial investments in new activities Zee Telugu, Zee Smile, Zee Sports and others, amounting to Rs 597 million," the company said in a release.

Q3 FY2006 - Highlights

Advertisement revenue was Rs 1,698 million for the third quarter ended 31 Dec 2005, an increase of 12.3% as compared to the corresponding period last fiscal.

Subscription revenue was Rs 1,751 million for the third quarter ended 31 Dec, 2005, an increase of 7.8% as compared to the corresponding period last fiscal.

Domestic subscription revenue was Rs 716 million for the third quarter ended 31 December, 2005.

Consolidated operating profits of continuing businesses recorded a 11.8 per cent decline to Rs 962 million as compared to the corresponding quarter last year, mainly due to investments in programming and marketing focused on long term buildup of mainline channels.

Commenting on the results, ZTL chairman Subhash Chandra said, "Over the last few quarters, we gave focused attention to Zee TV, the flagship channel and invested across genres of programming including soaps, musical shows and comedy shows. During the past few months, we have been updating you on our investments in new businesses. The third quarter saw additional investments particularly on account of Zee Sports which showcased two important properties, AIFF football and India Sri Lanka Test Cricket. Along with other properties, the Board of Zee has consciously decided to invest in new properties to strengthen long term business prospects of your company."

Added ZTL CEO Pradeep Guha, "We have gained significant traction on Zee TV, the flagship channel, which is now firmly the No. 2 general entertainment channel. Currently, gross ratings of Zee TV are almost 50 per cent higher than the next general entertainment channel competitor and this lead is progressively widening. Our properties Saat Phere, Sa Re Ga Ma Pa Challenge 2005 and Sinndoor Tere Naam Ka are doing extremely well. Zee Cinema has shown continued strength as the undisputed No. 1 movie channel. We are also strengthening our English and other language offerings which would show positive results in the near future."

The numbers as published, are after consolidating the financials of ETC Networks Limited (ETC) for the third quarter of FY2006. Since Zee has divested its stake in Padmalaya, for a like to like comparison, the result has excluded the financials of Padmalaya from Q3 FY2005.

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 December 31, 2005.

REVENUE STREAMS: Zee's advertising revenues increased to Rs 1.7 billion, a 12.3 per cent growth as compared to the corresponding quarter last fiscal. "The growth in advertising revenues was a result of higher average rates on most of the network channels," the company said.

Overall subscription revenues at Rs 1.75 billion, registered an increase of 7.8 per cent over the corresponding quarter last fiscal. Domestic pay revenues stood at Rs 716 million. Other sales and services grew to Rs 328 million. From Q2 FY2006, ZTL is recording the net income component of the trading of set top boxes as part of other income.

EXPENDITURE: Overall, Zee's cost of goods and operations went up 59.5 per cent compared to the corresponding period last year, mainly due to investments made in new channels like Zee Sports, Zee Smile, Zee Telugu and Zee Jagran. "During the third quarter, there was particularly heavy investment in Zee Sports which showcased the India Sri Lanka Test Cricket series. 

The first test in this series was washed out due to rains in Chennai. Additionally, there were two football (AIFF) tournaments - Santosh Trophy in Cochin and Federation Cup in Goa," the company clarified.

Other costs, particularly marketing costs have increased by 70.5 per cent. As a result, total expenses were higher by 59.9 per cent. During Q3 FY2006, finance cost has gone up to Rs 120 million, up from Rs 79 million in the corresponding quarter last year.

From FY2006, the company has accelerated its investments in the development and expansion of its network through substantial marketing and content improvement initiatives and new channel launches. "Zee is in a phase in which the initial investments have been made and expensed fully, while the corresponding revenue build-up is to be realised in the next several quarters. The immediate impact is lowering of operating profits, which Zee hopes to recover in successive quarters through increasing revenues and progressive reduction in costs," the release states.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/27/andpictures.jpg?itok=hAPDv3cg
&pictures to air world television premiere of ‘Mard Ko Dard Nahin Hota’ on 29 Feb

MUMBAI: &pictures to air the World Television Premiere of the action entertainer ‘Mard Ko Dard Nahi Hota Hain’ on 29 February at 8 pm. Written and directed by Vasan Bala, this award winning film pays homage to action films from the past along with a perfect blend of Bollywood masala. Produced...

Television TV Channels Music and Youth
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/27/shemaroo.jpg?itok=d9M0oF7P
Shemaroo MarathiBana celebrates Marathi Language Day with special movie line-up

MUMBAI: On the occasion of Marathi Language Day, the recently-launched Marathi movie channel, Shemaroo MarathiBana will air popular Marathi movies like Chhatrapati Shasan, Por Bazaar, Bakula Namdev Ghotale, Ramchandra Purushottam Joshi, Asa Mi Tasa Mi and many more. The channel which promises to...

Television TV Channels Music and Youth
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/27/pavitra.jpg?itok=3ssH5B8A
Colors' new drama series 'Pavitra Bhagya' to premiere on 2 March

MUMBAI: Colors’ upcoming drama series, Pavitra Bhagya will premiere on 2 March. The show will highlight the complexities of three connected lives as they cross each other's path by the stroke of destiny. Produced by Balaji Telefilms, Pavitra Bhagya will air every Monday to Friday at 10 pm.

Television TV Channels GECs
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/27/zee-carfe.jpg?itok=OFqorTPz
Witness the greatest show of all time – Penny Dreadful on Zee Café

MUMBAI: In ‘Penny Dreadful’ a frightening psychological thriller, some of literature’s most famously terrifying characters – including Dr. Frankenstein, Dorian Gray and iconic figures from the novel Dracula, all brilliantly reimagined in a whole new light – have become embroiled in Victorian London.

Television TV Channels English Entertainment
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/27/dm.jpg?itok=SgXU2Crw
Music becomes top gainer in Chrome DM week 07 2020

Music has become the top gainer in week 07, 2020 of Chrome Data Analytics and Media data. The genre grew by 0.85 per cent. In this genre, MTV Beats channel gained the highest OTS with 93.2 per cent in HSM excluding

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/27/ipl_0.jpg?itok=475F5tEn
Sports, IPL and the game of advertising

Follow social conversations and you will be led to believe that it is politicians, Bollywood stars, movies, Indian fictional television shows and characters that create the most buzz online and offline. Clearly, fans are in abundance, and many go as far as to imitate their heroes and heroines on...

Television TV Channels Sports
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/26/colorscineplex.jpg?itok=J3tyOiMX
Colors Cineplex to premiere Road Safety World Series on 7 March

MUMBAI: Colors Cineplex and VOOT is all set to bring Unacademy Road Safety Word Series.  The matches will be played in T20 format between India, Australia, Sri Lanka, West Indies, and South Africa starting 7 March to 22 March 2020 in Mumbai, Navi Mumbai and Pune and will stream live on Colors...

Television TV Channels Movie Channels
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/26/cnbc.jpg?itok=x8f0feVO
CNBC-TV18 announces fifteenth edition of India Business Leader Awards

MUMBAI: Network18’s English business news channel CNBC-TV18 is all set to launch the fifteenth edition of India Business Leader Awards (IBLA) under the theme of the event ‘Leaders of Change’. The objective of IBLA is to celebrate the remarkable achievements of the country’s most dynamic business...

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/26/ipl.jpg?itok=U_Qkyviv
Star Sports launches #KhelBolega campaign around IPL 2020

MUMBAI: Amid the heightened social media chatter within fans, Star Sports along with the Board of Cricket Council of India launched Khel Bolega, a television commercial (TVC) ahead of IPL 2020. Khel Bolega indicates that the coming season will clearly end the response to all the chatter (#BolBakar...

Television TV Channels Sports

Sign up for our Newsletter

subscribe for latest stories

* indicates required