Press Releases2011Jul 22, 2011
ZEE declares results for 1Q FY12 Unaudited Financial Results
Mumbai, July 21, 2011: Zee Entertainment Enterprises Limited (ZEE) (BSE: 505537, NSE: ZEEL.EQ) today reported its first quarter fiscal 2012 consolidated revenue of Rs 6,983 million representing a 3.1% growth over the corresponding period in the previous fiscal. The consolidated operating profit (EBITDA) for the quarter stood at Rs 1,560 million and PAT was Rs 1,302 million. The EBITDA margin for the quarter stood at 22.3%.« Back
The Board of Directors in its meeting held today, has taken on record the unaudited consolidated financial results of ZEE and its subsidiaries for the quarter ended June 30, 2011.
Total revenues were Rs 6,983 million for the quarter ended June 30, 2011 recording a growth of 3.1% as compared to the corresponding period last fiscal.
Advertising revenues were Rs 3,787 million and subscription revenues were Rs 3,051 million for the quarter ended June 30, 2011. While advertising revenues increased by 0.5%, subscription revenues showed an increase of 16.7% as compared to the corresponding period last fiscal. Subscription revenues from domestic DTH were Rs 1,107 million during this quarter, an increase of 55.9% y‐o‐y.
Operating profit (EBITDA) for the quarter ended June 30, 2011 was Rs 1,560 million. Operating profit margin for the quarter stood at 22.3%.
Profit after Tax (before exceptional items) stood at Rs 1,302 million for the quarter ended June 30, 2011, recording a growth of 7.5% as compared to the corresponding period last fiscal.
The sports business revenue during the quarter was Rs 873 million, while the operating losses were at Rs 566 million.
The Company has made a public announcement on 15th July 2011 for share buyback pursuant to the SEBI buyback regulations for the commencement of buyback tentatively from 27th July 2011. Upon receipt of regulatory clearance, the Company shall commence buyback appropriately.
Mr. Subhash Chandra, Chairman, ZEE, stated, "While Indian economy continues to grow at a healthy pace, high inflation and the resultant tight money policy of RBI has led to some degree of slowdown. Television industry continues to grow its subscriber base, though advertising spends have been impacted. An estimated 2.9 million DTH homes got added during the quarter across the country, reflecting the positive outlook for digitization and a fast growing pay television market. At the end of June 2011, there are now 37.0 million DTH subs in the country, up from 34.1 million during March 2011. This widespread adoption of satellite based television services via DTH is proving to be a big game changer for television business in India and creating a more sustainable business model for the industry. We expect some consolidation to take place in the television media space. Creation of MediaPro Enterprise is one step in that direction, which will help develop the pay revenue stream for the industry. New content formats, like HD and 3D, are being experimented with and will likely open up new revenue streams for the broadcasters."
Commenting on the first quarter results of the Company, Mr. Chandra added "During the quarter, we have seen some pullback in ad spends. It is encouraging to see that continued digitization is reducing our reliance on advertising revenues as there is robust build‐up in subscription revenue stream. The Company remains committed to deliver high quality content to its viewers across genres. Our investments in the sports genre have continued during the quarter."
Mr. Punit Goenka, Managing Director and Chief Executive Officer, ZEE, commented, "Our performance during the quarter is reflective of the robust growth in subscription revenue stream for the broadcasters in the country. Despite a heavy sports calendar during the quarter on competing channels, our portfolio has done well, both in terms of viewership ratings and revenues. This clearly delineates the popularity of our programs which continue to draw loyal audience. While the competitive intensity remains high in the Indian television industry, we continue to make efforts towards further enhancing our market share. To stay relevant and contemporary in a world of constant change, we have introduced a new brand logo, with a more engaging tagline and a new positioning. The overall response to this brand refresh has been very encouraging and we look forward to engage the viewers with new and fresh programming ideas."
"While our business fundamentals remain strong, the environment for ad spends has been weak, in our view, and to an extent the change of pace was quite fast. We are hopeful that with the onset of festive season, we should see some normalcy in advertising spends. The India - West Indies cricket series has resulted in good viewership for Ten Cricket, but has also resulted in operating losses, as was expected. A significant part of the sports losses for this year has taken place in the first quarter itself. We continue to reiterate our commitment to develop the sports genre which will see a far improved performance compared to fiscal 2011", Mr. Goenka added.
Speaking about the outlook for the business, Mr. Goenka continued, “Our content focused approach combined with better monetization of subscription revenues, will contribute to Company delivering steady return in the year ahead."