Press Releases2011

Jan 21, 2011
Zee News Limited declares Q3 results for FY 11

Zee News Limited (ZNL) (BSE: 532794, NSE: ZEENEWS) today reported third quarter fiscal 2011 consolidated revenues of Rs 744.4 million. Consolidated EBITDA stood at Rs 134.5 million.

Net Profit before tax stood at Rs. 103.6 million. The Board of Directors, in its meeting held today, has approved and taken on record the un-audited financial results of ZNL for the quarter ended on December 31, 2010.

Highlights

Advertising revenue showed a growth of 32.7% YOY and stood at Rs. 541.7 million for the quarter ended December 31, 2010

During the nine months ending December 2010, advertising revenue grew by 21.5% over the corresponding period last year. This is despite the fact that advertising revenue for news channels last year was boosted by General Elections

Subscription Revenue for Q3 was Rs.185.9 mn which constituted 25% of the total revenue.

The existing news channels Zee News, Zee Business, Zee 24 Taas, Zee Punjabi & 24 Ghanta reported EBDITA of Rs. 225.2 million.

EBITDA for the third quarter overall stood at Rs 134.5 million, after including the losses incurred by the newly launched channels.

Zee News Limited has emerged as not only the Nation's largest news organization, but also the No.1 news network of the country in terms of viewership in the core category. (52-week Average, AB Male 25+, Source: TAM)

The flagship channel 'Zee News' showed growth during Prime Time, as it was No. 1 in Top 8 Metros during this segment. The channel continued its editorial bent of showing serious, relevant news in an industry which tends to sensationalize news.

'Zee Business' remained the most watched business channel during the crucial stock market band.

Mr. Subhash Chandra, Chairman, ZNL, said, "The news genre on television is marked by intense competition in India, unlike any other country in the world. Most news channels in India are incurring losses. Our objective is to create a focused news organization which can create value for the shareholders in the long term. I am happy that Zee News Limited, not only differentiates itself by delivering unbiased, serious and credible news to its viewers, but does it profitably."

He added, "Our Company continues to outperform competition due to its quality of manpower, which is kept motivated with several training schemes to build leadership in the organization. We aim to create a news powerhouse which is close to the action and can reach out to every viewer in his/her preferred language and I am happy to say that we are progressing very well toward the goal."

Mr. Punit Goenka, Managing Director, ZNL, said, "Zee News Limited has shown significant growth in profitability in this quarter. Evidently, the editorial and business decisions taken by the Company in the recent past are reaping rich dividends. The consistent emphasis on serious news has made Zee News Limited not just the largest, but also the No. 1 news network of India. The leadership position of the network has in turn helped augment the company's financial position thus creating a win-win situation. Business performance during the slowdown and beyond shows great potential of growth from here. I am hopeful of continued improvement in business performance as we start are planning for the next fiscal."

Mr. Barun Das, CEO, ZNL, said, "ZNL has shown that pragmatic and creative approach works best in the news market - national and vernacular. EBITDA margin of 18% is quite healthy considering that there are three new channels which are still on way to break even; whereas the EBITDA of Rs 225.2 million and margin of 32.6% for the group of existing channels demonstrates the quality of operational efficiency. In the context, the all-round performance of our bouquet of channels would continue to be our critical success factor. Our focus on “news that matters” has established our credentials as a network."

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