Zee Entertainment Enterprises Limited (ZEEL) (BSE: 505537, NSE:ZEEL.EQ) today reported its fourth quarter fiscal 2011 consolidated revenue of Rs 7,980 million representing a 22.9% growth over the corresponding period in the previous fiscal. The consolidated operating profit (EBITDA) for the quarter stood at Rs 2,268 million and PAT was Rs 1,918 million. The EBITDA margin for the quarter stood at 28.4%.
The full year fiscal 2011 operating revenues of the company stood at Rs 30,114 million, while consolidated operating profit (EBITDA) for the year was Rs 8,266 million with an operating profit margin of 27.4%. PAT for the full year was Rs 6,236 million.
The numbers as published are after consolidating the financials of Taj TV Limited (Taj). The Board of Directors in its meeting held today, has taken on record the unaudited consolidated financial results of ZEEL and its subsidiaries for the quarter ended March 31, 2011. The 9X business undertaking of 9X Media Pvt Ltd and ETC Networks Ltd were merged with the Company w.e.f. March 31, 2010. Post the merger of ETC Networks Ltd with ZEEL, the entire education business undertaking of ZEEL was demerged into a new listed company, Zee Learn Limited w.e.f. April 01, 2010. Hence, the numbers for this quarter are not strictly comparable on a like to like basis.
4Q FY2011 - Highlights
Total revenues were Rs 7,980 million for the quarter ended March 31, 2011 recording a growth of 22.9% as compared to the corresponding period last fiscal. For full year FY2011, the company registered total revenues of Rs 30,114 million, an increase of 37.1% over FY2010.
Advertising revenues were Rs 4,797 million and subscription revenues were Rs 3,107 million for the quarter ended March 31, 2011. While advertising revenues increased by 36.4%, subscription revenues showed an increase of 23.7% as compared to the corresponding period last fiscal. Subscription revenues from domestic DTH were Rs 984 million during this quarter, an increase of 44.1% yoy.
Operating profit (EBITDA) for the quarter ended March 31, 2011 was Rs 2,268 million, an increase of 23.5% as compared to the corresponding period last fiscal. Operating profit margin during the quarter stood at 28.4%. For the full year, operating profit stood at Rs 8,266 million and EBITDA margin was at 27.4%.
The sports business revenue during the quarter was Rs 1,424 million, a significant jump over the 3rd quarter, while the operating losses were limited to Rs 152 million.
Profit after Tax stood at Rs 1,918 million for the quarter ended March 31, 2011, recording a growth of 49% as compared to the corresponding period last fiscal. Profit after Tax for the full year FY2011 stood at Rs 6,236 million.
During the quarter, the Company repaid debt of Rs 910 million. As of March 31, 2011, it has gross debt of Rs 1.2 million and net cash of Rs 12.5 billion.
The shareholders of the Company have, through the postal ballot process, approved the buyback of Equity Shares of the Company under the "open market" mechanism through the Stock Exchanges, at a price not exceeding Rs 126 per Equity Share.
Mr. Subhash Chandra, Chairman, stated, "FY2011 was a significant year for the television media industry in several ways. The number of TV households continued to grow at a healthy pace. Advertising revenues bounced back at a healthy pace after a slowdown in FY2010, reflecting a buoyant recovery in the economy. There were some steps towards consolidation in the industry and more importantly, digitization continued to be the dominating theme in the country. At the end of March 2011, there are now 34 million direct to home digital pay TV homes in the country, up from 21 million in March 2010. The adoption of digital has brought in many significant improvements in the way content is delivered to consumers, for example, High Definition content. Very soon, advertising would be sold separately for digital consumer, and consumer would be opting for premium content."
Commenting on the fourth quarter results of the Company, 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. Our investments in the sports genre have continued during the quarter."
Mr. Punit Goenka, Managing Director and Chief Executive Officer, ZEEL, commented, "In a year which recorded a resurgence of advertising revenues on television, we have yet again outperformed the industry. We ended fiscal 2011 on a good note, gaining viewership share across several genres, combined with improved revenue shares, better operating margin and increased cash flow. With our subscription revenues growing at a healthy pace, our overall revenues have recorded a 23% growth over the fourth quarter of last year. For fiscal 2011, our revenues grew 37%, while our EBITDA grew 36%, despite increased losses in sports business."
"I am happy to report that sports losses were contained to Rs 152 million during the fourth quarter, in line with our forecast earlier. We do expect losses to continue in the sports business for some more time to come", Mr. Goenka added.
Speaking about the outlook for the business, Mr. Goenka continued, "Our content focused approach combined with better monetization of subscription revenues, will contribute to Company delivering steady return in the year ahead."
Financial Results & Earnings Release available on company's website www.zeetelevision.com