Press Releases2011

Jul 28, 2011
Zee News Ltd. declares its Q1 results for FY12

MUMBAI, India; July 25, 2011 - Zee News Limited (ZNL) (BSE: 532794, NSE: ZEENEWS) today reported first quarter fiscal 2012 consolidated revenues of Rs 636.6 million. Consolidated EBITDA stood at Rs 76.6 million.

Net Profit before tax stood at Rs. 50.9 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 June 30, 2011.

Operating Highlights

Advertising revenue stood at Rs 436.4 million for the quarter ended June 30, 2011 and constituted 68.6% of the total revenue.

Subscription Revenue for Q1 was Rs 181.6 mn which constituted 28.5% of the total revenue.

EBITDA for the first quarter overall stood at Rs 76.6 million, after including the losses incurred by the newly launched channels.

The existing news channels Zee News, Zee Business, Zee 24 Taas, Zee Punjabi & 24 Ghanta reported EBDITA of Rs. 139.1 mn.

ZNL remains as one of the leading news networks in core TG of CS AB M 25+ in the quarter (Source TAM, Week 14 to 27).

Mr. Subhash Chandra, Chairman, ZNL, said, "The Indian economy has been affected by unrelenting high inflation and tight monetary policy. The GDP growth outlook has been trimmed down by various agencies from the earlier projections. While the macro economic concerns have also impacted the television news industry, we had anticipated this slowdown and the same were factored in our planning. Given that the news TV industry has degrown considerably our performance gives us confidence to evaluate expansion in near future. Editorially, Zee News and all the vernacular channels remained committed to "news that matters" and earned goodwill of viewers."

He added, "A positive, meanwhile, has been the growth of DTH homes - with 2.9 million being added during the quarter across the nation. The figure reflects positively in favour of digitization and indicates a growing scope for pay TV market."

Mr. Punit Goenka, Managing Director, ZNL, said, "The new financial has started slowly, but considering that the industry de-grew, Zee News Limited has done well to match up with Q1 FY11. Incidentally, Zee News Limited had an exceptionally good Q1 in the last year. In this quarter, the monies got diverted to sporting events, thereby upsetting budgets for other genres including news. We had anticipated this slowdown and had planned accordingly. The company, as the largest and No. 1 news network of the country continues to outperform the industry. Going forward, the news genre looks likely to recover traction with eclectic properties that would be seen as viable spending options. In the meantime, the company recently has adopted a new identity infusing freshness in its look and the market has responded enthusiastically to it."

Mr. Barun Das, CEO, ZNL, said, "While Zee News Limited experienced some slowdown in revenues due to some critical spending product categories being under the weather, our cost effectiveness stood us in better stead compared to the industry in terms of healthy balance sheet. Our well balanced bouquet of national and regional channels is another factor from which we derive immense strength. We had an exceptional first quarter during FY11, and thus our performance during this fiscal has been quite encouraging and in line with our business plans. We are confident that our innovative approach and ability to provide tailor-made solutions will attract national and state level clients and we expect the next quarter performance to improve significantly. We continue to be a leader In terms of Network viewership performance."

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