Press Releases2013

Jul 26, 2013
Zee Entertainment Enterprises Ltd. declares its Q1 results for FY14

Mumbai, July 25, 2013: Zee Entertainment Enterprises Limited (ZEE) (BSE: 505537, NSE: ZEEL.EQ) today reported its first quarter fiscal 2014 consolidated revenue of Rs 9,733 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 2,915 million, recording a growth of 25.0% over corresponding period of previous fiscal. PAT for the quarter was Rs 2,239 million. The EBITDA margin for the quarter stood at 29.9% and the PAT margin was 23.0%.

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, 2013.

Q1 HIGHLIGHTS

  • Advertising revenues for the quarter were Rs 5,301 million, recording a growth of 18.5% over Q1 FY13, which is higher than the industry growth rate.
  • Subscription revenues were Rs 4,241 million for the quarter ended June 30, 2013, recording a growth of 16.5% over corresponding period last fiscal. During the quarter, domestic subscription revenues stood at Rs 3,168 million, while international subscription revenues were Rs 1,073 million.
  • Consolidated operating revenues for the quarter stood at Rs 9,733 million, recording a growth of 15.5% as compared to the corresponding quarter last fiscal.
  • Operating profit (EBITDA) for the quarter stood at Rs 2,915 million, recording a growth of 25.0% over the corresponding quarter last fiscal. EBITDA margin for the quarter expanded from 27.7% in Q1 FY13 to 29.9% in Q1 FY14.
  • Profit after Tax (PAT) for the quarter ended June 30, 2013 was Rs 2,239 million, a growth of 42.6% over corresponding period last fiscal.

Mr. Subhash Chandra, Chairman, ZEE, stated, “The economy during the quarter has continued to face challenges due to sharp depreciation in rupee against major currencies leading to elevated current account deficit, balance of payment, inflation and adverse fiscal deficit. Measures are being taken to curb excessive speculation, reduce volatility and stabilize the rupee. Growth remains weak during the quarter and only a marginal improvement in GDP growth is expected. In spite of this lackluster economic growth, television media industry has posted a comparatively robust growth on the back of sustained advertising spends by the consumer goods sector.”

Commenting on the new brand positioning of ZEE, he added, “ZEE as a brand, has achieved global recognition today, and has grown exponentially over the years, establishing a strong connect in the minds and hearts of its audience globally. There was a definite need for a brand positioning statement, which differentiates ZEE from the other global media brands, and establishes a strong emotional connect with its stakeholders. With this approach in mind, “Vasudhaiva Kutumbakam” - The World is my Family has been launched as the positioning for Brand ZEE, which conveys the message of creating a world without borders, castes, races and strangers, hence uniting everyone as a part of one Family.”

Commenting on the 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. In a highly competitive space, ZEE continues to build its media assets and in the process continues to create value for the shareholders. We have a strong balance sheet and I am confident that we would take advantage of the growth opportunities ahead of us.”

Mr. Punit Goenka, Managing Director and Chief Executive Officer, ZEE, commented, “The first quarter of fiscal 2014 has been a good quarter both on operating as well as financial parameters. The subscription revenue during the quarter has shown robust increase and with digitization rollout, will improve in the medium term. ZEE has maintained viewership share both in national and regional languages, which led to better advertising growth relative to the industry. During the quarter, we have been able to maintain healthy operating margins, driven by robust ad revenue growth and continuing monetization of subscription revenues. Sports performance for the quarter has been good but due to a heavy sports calendar and rupee depreciation, the business is expected to be in losses for some more time to come.”

Commenting on the changes in the industry landscape, Mr. Goenka added, “These are exciting times and we are witnessing a lot of changes in the industry landscape. The phased implementation of TRAI 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. DAS implementation in Phase I & II also moved a step further with MSOs making substantial progress in capturing consumer data and taking first steps towards implementing packaging.”

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. At ZEE, we remain focused on delivering superior content to viewers and building a stronger relationship with our consumers. Also, our content focused approach combined with better monetization of subscription revenues, will contribute to Company delivering steady return in the years ahead.”

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