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Sunday, August 18, 2013

Zee net up 43% on strong ad, subscription revenues

This story first appeared in DNA Money edition on Friday, Jul 26, 2013.

Zee Entertainment Enterprises on Thursday reported a 42.6% year-on-year growth in net profit at Rs 223.9 crore for the quarter ended June as advertising and subscription revenues surged.

Advertising and subscription revenues were up 18.5% and 16.5% at Rs 530.1 crore and Rs 424.1 crore, respectively.

Subhash Chandra, chairman, Zee Group, said the company’s performance reflects the investments it is making to grow its business and market share.

“This has been accompanied by a strong improvement in the operating performance of the company during the quarter,” he said.

Operating profit, or earnings before interest, tax, depreciation and amortisation (Ebitda), for the quarter rose 25% to Rs 291.5 crore, riding on a 15.5% jump in consolidated operating revenues to Rs 973.3 crore. The Ebitda and PAT margins stood at 29.9% and 23%, respectively.

Chandra said Zee continues to build its media assets despite being in a highly competitive space and in the process creates value for shareholders. “We have a strong balance sheet and I am confident that we would take advantage of the growth opportunities ahead of us.”

On the overall media and entertainment industry scenario, Puneet Goenka, MD and CEO, Zee Entertainment, said the fiscal has started with a good quarter both on operating and financial parameters. “These are exciting times and we are witnessing a lot of changes in the industry landscape. The phased implementation of Trai’s regulation with respect to advertising inventory on a clock-hour basis has started and is expected to be fully in place by the end of second quarter,” he said.

On the corporate side, Zee shareholders passed a special resolution approving enhancement of foreign institutional investor investments limit in the company beyond the current limit of 49% up to the maximum sectoral limit allowed under applicable foreign direct investment regulations.

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