Press Releases2010Sep 24, 2010
Zee Entertainment Board announces approval of Audited Financial Results for FY 2010
The numbers during the year include financial results of Regional General Entertainment Channel business (RGEC) acquired from Zee News Limited (ZNL). The R GEC business was acquired w.e.f. January 1, 2010. During the year, the Company has also acquired the 9X general entertainment channel business undertaking through a scheme of arrangement and ETC Networks Limited (ETC), a subsidiary of the Company was amalgamated with the Company w.e.f. March 31, 2010. Because of the above, the numbers for this year are not comparable with those of the corresponding year last fiscal. The consolidated operating revenues for the year was Rs 21,998 million and the consolidated operating profit (EBITDA) for the year stood at Rs 6,135 million, Profit before tax was at Rs 6,738 million and Profit After tax was at Rs 6,165 million.
BOARD RECOMMENDS FINAL DIVIDEND OF 200%
Mr. Subhash Chandra, Chairman, stated, Despite slowdown, FY2010 was a good year for the television media industry in many ways. The number of TV households continued to grow at a healthy pace. More importantly, there are close to 21 million direct to home digital pay TV homes in the country, up from 12 million in March 2009. This has been the most important development for the industry. While the economic slowdown did impact the growth in advertising revenues, some steps towards consolidation were good for the industry economics.
Advertising on television media is hugely under priced in India, as are Pay TV ARPUs. As an industry, we have to continue to work towards bringing corrections and I am hopeful of improvement in the coming years.
Commenting on the decisions taken by the Board during the meeting, Mr. Chandra added The Company's commitment to its viewers of delivering high quality content across genres has translated into satisfactory financial results. At Zee, we will continue to pursue growth opportunities which would enhance long term shareholder value. I am pleased to report that during the fiscal 2010, various affiliate companies have repaid loans and advances which were due this year. As a result, the Company has repaid most of its outstanding debt and now has net cash on the balance sheet. Given the strong financial position, the Board had earlier approved a special Interim dividend of Rs 2 per share in April. In today's meeting, the Board has recommended a final dividend of Rs 2 per share. The Board has also recommended issue of Bonus shares in the ratio of 1:1, subject to approval from shareholders.
Financial Results and Earnings Release are available on the company's website www.zeetelevision.com