Press Releases2012May 22, 2012
ZEE declares Audited Financial Results for 4Q FY12
Mumbai, May 21, 2012: Zee Entertainment Enterprises Limited (ZEE) (BSE: 505537, NSE: ZEEL.EQ) today reported its fourth quarter fiscal 2012 consolidated revenue of Rs 8,691 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 1,600 million and PAT was Rs 1,630 million. PAT margin for the quarter stood at 19%.« Back
The Board of Directors in its meeting held today, has taken on record the audited consolidated financial results of ZEE and its subsidiaries for the quarter ended March 31, 2012.
Mr. Subhash Chandra, Chairman, ZEE, stated, "Fiscal 2012 has been marked by a sharp slowdown in the economy. From a GDP growth of 8.4% in FY11, FY12 is expected to end with a GDP growth of less than 7%. This change in pace of growth has had a greater impact on advertising spends during the year, and advertising revenue growth has seen a much sharper slowdown. The year also witnessed quite a few consolidation moves within the industry reflecting on the inability of some players to withstand competition"
"In this environment, ZEE continues to build its media assets and in the process continues to create value for the shareholders. We have taken a conscious call to increase investments in content and simultaneously develop our distribution capabilities through a collaborative effort. FY2013 is expected to be a landmark year for the television media industry. The industry is gearing up for a big change with deadline for implementing Digital Addressable System (DAS) in the four metros approaching on June 30, 2012. Digitization will bring about improvements in addressability and capacity, thereby, improving the quality of service to consumers and creating a better financial model for all players in the value chain", he added.
Commenting on the fourth quarter results of the Company, Mr. Chandra added, "Our performance during the quarter reflects the investments that ZEE 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. The Company will stand by its commitment to its viewers of delivering high quality content across genres. Our investments in the sports genre have continued during the quarter. In today's meeting, the Board has recommended an equity dividend of Rs 1.50 per share."
Mr. Punit Goenka, Managing Director and Chief Executive Officer, ZEE, commented, "We are looking forward to the implementation of digitization which will significantly improve transparency in the pay-TV ecosystem resulting in more choice to the consumers, better quality of viewing and better economies for all players. In fiscal 2012, 10.5 million subscribers have adopted satellite based television services via DTH, taking the gross DTH subscriber base to 44.6 million strong. During the quarter, we have seen significant improvement in our operating performance across all genres. The flagship channel, Zee TV, has improved its market share noticeably. We are confident that we would further enhance our market share through our planned content line-up and continue to grow our business profitability in a sustained manner."
"In line with our strategy of growth through focused disciplined investments, we launched India's first and only OTT (over-the-top) distribution platform, Ditto TV, with an aim to offer Live TV Channels and On Demand Video Content to consumers on multiple platforms including mobile phones, tablets, laptops, desktops and connected TVs. We have also launched some of our content 3 offerings in high definition format. Ten Golf is ZEE's latest premium offering targeted at urban up-market audiences", he added.
Speaking about the outlook for the business, Mr. Goenka continued, "While the competitive intensity remains high in the Indian television industry, we continue to make efforts towards further enhancing our market share. Media Pro, our joint venture for subscription revenues, has started on a good note and we are very confident of a robust performance going forward. The impending digitization will further be able to create value for the business. Also, our content focused approach, combined with better monetization of subscription revenues, will contribute to Company delivering steady return in the year ahead."
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