Press Releases2013

May 22, 2013
Zee Entertainment Enterprises Ltd. declares its Q4 results for FY13

Mumbai, May 22, 2013:  Zee Entertainment Enterprises Limited (ZEE) (BSE: 505537, NSE: ZEEL.EQ) today reported its fourth quarter fiscal 2013 consolidated revenue of Rs 9,643 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 2,423 million, recording a growth of 51.4% over corresponding period of previous fiscal. PAT for the quarter was Rs 1,804 million. The EBITDA margin for the quarter stood at 25.1% and the PAT margin was 18.7%.

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 year ended March 31, 2013.

For the full year FY2013, consolidated operating revenues of the Company were Rs 36,996 million, while consolidated operating profit (EBITDA) for the year was Rs 9,543 million, recording a growth of 29.0%. PAT for the year stood at Rs 7,182 million.

4Q HIGHLIGHTS

*   Consolidated operating revenues for the quarter stood at Rs 9,643 million, recording a growth of 11.0% as compared to the corresponding quarter last fiscal. For the full year FY2013, the Company registered total revenues of Rs 36,996 million, an increase of 21.7% over FY2012.

*   Advertising revenues for the quarter were Rs 4,792 million, showing a growth of 15.5% over 4Q FY12. For full year FY2013, advertising revenues increased by 24.0% to Rs 19,639 million.

*    Subscription revenues were Rs 4,546 million for the quarter ended March 31, 2013, recording a growth of 13.0% on reported numbers over corresponding period last fiscal. This is the highest revenue ever in a quarter. For the full year FY2013, subscription revenues were Rs 16,234 million, recording a growth of 22.6%.

*   During the quarter, domestic subscription revenues stood at Rs 3,374 million, while international subscription revenues were Rs 1,172 million. For the full year FY2013, domestic subscription revenues were Rs 11,648 million, recording a growth of 26.3% over last fiscal; while the international subscription revenues were Rs 4,586 million, recording a growth of 14.0% over last fiscal.   

*    Operating profit (EBITDA) for the quarter stood at Rs 2,423 million, recording a growth of 51.4% over the corresponding quarter last fiscal. EBITDA margin for the quarter stood at 25.1%. For full year FY2013, EBITDA was Rs 9,543 million, recording a growth of 29.0%.

*    Profit after Tax (PAT) for the quarter ended March 31, 2013 was Rs 1,804 million, a growth of 10.7% over corresponding period last fiscal. For full year FY2013, PAT stood at Rs 7,182 million, recording a growth of 21.6%.

Mr. Subhash Chandra, Chairman, ZEE, stated
, "Indian economy is showing early signs of a recovery with steady moderation in inflation. The recent policy initiatives by the Government and further reforms should help to boost business sentiment and improve the investment climate. Despite the backdrop of a slowing economy in FY2013, television media industry has continued on its growth path."

"FY2013 was a defining year for the television media sector in many ways. The biggest transformation was the implementation of Digital Addressable System (DAS) in the 42 largest cities of India. At the end of March 2013, there were an estimated 33 million digital pay TV homes on DTH and an estimated 16 million homes on digital cable, up from 29 million DTH and 4 million digital cable homes in March 2012. Though advertising growth has been muted for the television industry as a whole, ZEE has recorded industry leading growth of 24% in FY2013", he continued.

Commenting on the results of the Company, Mr. Chandra added, "ZEE had a very successful year in FY2013, with strong financial results, reflecting our focus on delivering superior performance. This year also marked the completion of 20 years of Brand Zee. To mark the 20th year celebrations, the Board has recommended a cash dividend of Rs 2.00 per share. In addition, the Board has announced distribution of Rs 20 billion through bonus issue of Redeemable Preference Shares. This reflects our strong commitment to deliver consistent and sustainable return of capital to shareholders through a combination of dividends and buyback. In the last two years, we have returned 6,850 million through a combination of dividend and buyback. We believe we can continue to return meaningful amount of capital even as we strengthen our balance sheet and invest in the growth of the businesses. We will continue to pursue growth opportunities, which would enhance long term shareholder value."

Mr. Punit Goenka, Managing Director and Chief Executive Officer, ZEE, commented, "Fiscal 2013 has been a good year both on operating as well as financial parameters. Consolidated revenues increased 21.7% to Rs 37 billion driven by strong growth in both advertising and subscription revenues. ZEE gained viewership share with improvements across genres, both in national and regional languages, which led to outperformance in advertising growth relative to the industry. Domestic subscription revenues grew 26.3%, driven by digital subscribers. We have recorded EBITDA margin expansion from 24.3% to 25.8% despite our investments in new businesses. We have also seen steady improvement in our sports business over the last three years. While the investment in sports continues, performance has improved substantially with better monetization from subscription."

Commenting on the rollout of digitization, Mr. Goenka added, "DAS phase II has been implemented across the country. Industry ARPUs on DTH seem to be growing with exciting consumer offers being provided by operators on premium channel subscriptions. We believe similar effort by digital cable operators will ensure a more robust growth of the industry for all stakeholders."

Mr. Goenka continued, "The improving economic outlook augurs well for the media and entertainment sector. We are hopeful that a steady growth in ratings will help ZEE deliver better performance in the coming quarters. Our content-focused approach combined with better monetization of subscription revenues, especially from digital markets, will contribute to the company delivering steady and sustainable returns in the years ahead."

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