Press Releases2012Jan 23, 2012
ZEE declares results for 3Q FY12 Unaudited Financial Results
Macau, January 21, 2012: Zee Entertainment Enterprises Limited (ZEE) (BSE: 505537, NSE: ZEEL.EQ) today reported its third quarter fiscal 2012 consolidated revenue of Rs 7,548 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 2,160 million and PBT was Rs 2,243 million. The EBITDA margin for the quarter stood at 28.6% and the PBT margin was 29.7%. The« Back
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 December 31, 2011.
Mr. Subhash Chandra, Chairman, ZEE, stated, "While the world economy goes through another round of upheaval, the Indian economy continues to grow, even though at a lower pace. The slowdown brings its own set of challenges in all spheres of business activity. We hope that inflation will be contained in the near future and the interest rates will start easing out injecting some degree of growth in the economy. Advertising trend continues to be slower than expected. However, the television economy continues to grow on the back of higher subscriber growth and increasing digitization. The Parliament has now passed the Cable Digitization Bill, which sets out the guidelines for implementation of Digital Addressable System (DAS). This development will definitely give a boost to the cable and satellite industry and help create a more sustainable business model for the television industry."
"So far in fiscal 2012, 8.5 million subscribers have adopted satellite based television services via DTH. With the implementation of Digital Addressable System, as per the announced timelines, there would be accelerated conversion from analog to digital subscribers. A good part of the subscriber base could also come from adoption of digital cable. With Digital Addressable System being implemented, the Cable and DTH industry has a great opportunity to consolidate the distribution business. I believe that over the next 4-5 years, the television distribution business can evolve to a more transparent, organized and service oriented industry, if digitization process is implemented well", he continued.
Commenting on the first quarter results of the Company, Mr. Chandra added "The competitive intensity in the television segment continues to be high. Given the backdrop of slowdown in advertising spends, our performance reflects the same. However, our reliance on ad revenues is cushioned by the robust build-up in subscription revenues. We have a very strong balance sheet and I am confident that we would take advantage of the growth opportunities ahead of us and will record improved operating performance in the period ahead."
Mr. Punit Goenka, Managing Director and Chief Executive Officer, ZEE, commented, "Zee Entertainment's wide portfolio of television channels had some gains and some losses in market shares during the quarter. We are confident that we would regain the market share losses through our planned content lineup and continue to grow our business profitability in a sustained manner. During the quarter, we have been able to maintain healthy operating margins, partly due to lower sports losses and partly due to better cost efficiency measures. Advertising spends are flat sequentially, and the overall trends also remain subdued. Our strategy during the last few years has been to create a formidable entertainment enterprise and invest in the business in a focused disciplined way" 3 Earnings Release for the Quarter ended December 31, 2011
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. With the digitization mandate being passed, it will further be able to create value for the business. We have already seen a robust sequential growth in our domestic subscription revenues. Also, our content focused approach combined with better monetization of subscription revenues, will contribute to Company delivering steady return in the year ahead."