Press Releases2010

Apr 22, 2010
ZEEL posts consolidated revenues of INR 6,493 million

ZEEL posts consolidated revenues of INR 6,493 million
4Q FY2010 - Highlights

-Total revenues were Rs 6,493 million for the fourth quarter ended March 31, 2010, recording a growth of 26% as compared to the corresponding period last fiscal. For full year FY2010, the company registered total revenues of Rs 21,966 million, an increase of 1% over FY2009.

- Advertising revenues were Rs 3,517 million and subscription revenues are Rs 2,513 million for the fourth quarter ended March 31, 2010. While advertising revenues increased by 54%, subscription revenues showed an increase of 7% as compared to the corresponding period last fiscal. Subscription revenues from domestic DTH were Rs 683 million during this quarter, an increase of 79% over 4Q FY2009.

- Operating profit (EBITDA) for the fourth quarter of FY2010 was Rs 1,836 million and operating profit margin stood at 28.3%. For the full year, operating profit stood at Rs 6,087 million and EBITDA margin was at 27.7%.

- Profit after Tax for the quarter stood at Rs 1,288 million and for the year stood at Rs 4,775 million.

-Numbers for the quarter ended March 31, 2010 include results of the Regional General Entertainment Channel business (R-GEC) w.e.f. January 1, 2010 and hence are not comparable with those of the corresponding quarter last fiscal.

-During the quarter, the Company repaid debt of Rs 5.16 billion. As on March 31 2010 it has gross debt of Rs 590 million and net cash of Rs 7.54 billion.

-The Board of Directors of the Company has approved a special interim dividend of 200% on the expanded capital.

Zee Entertainment Enterprises Limited (ZEEL) (BSE: 505537, NSE: ZEEL.EQ) reported its fourth quarter fiscal 2010 consolidated revenues of Rs 6,493 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 1,836 million, profit before tax stood at Rs 1,961 million and profit after tax at Rs 1,288 million, while EBITDA margin for the fourth quarter stood at 28.3%. The full year fiscal 2010 operating revenues of the company stood at Rs 21,966 million and operating profit margin for the year was 27.7%. The operating profit margin for the full year excluding the sports business stood at 35%.

The numbers as published are after consolidating the financials of Taj TV Limited (Taj), ETC Networks Limited (ETC) and Zee Turner Limited. 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, 2010. The Board also approved a special interim dividend of 200%.

The numbers of the fourth quarter include financial results of Regional General Entertainment Channel business (R-GEC) acquired from Zee News Limited (ZNL) w.e.f. January 1, 2010 and hence are not comparable with those of the corresponding quarter last fiscal.

Mr. Subhash Chandra, Chairman, ZEEL, stated, Despite slowdown, FY2010 was a good year for the television media industry in many ways. The number of TV households continued to grow at a healthy pace. More importantly, there are close to 21 million direct to home digital pay TV homes in the country, up from 12 million in March 2009. In my view, this has been the most important development for the industry. While the economic slowdown did impact the growth in advertising revenues, some steps towards consolidation were good for the industry economics. Advertising on television media is hugely under priced in India, as are Pay-TV ARPUs. As an industry, we have to continue to work towards bringing corrections and I am hopeful of improvement in the coming years.

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. I am pleased to report that during the fiscal 2010, various affiliate companies have repaid loans and advances which were due this year. As a result, the Company has repaid most of its outstanding debt and now has net cash on the balance sheet. Given the strong financial position, the Board has approved a special Interim dividend of Rs 2 per share. As has been our stated intent, our first priority is to invest surplus cash in projects which would potentially earn higher returns for the company. If we do not find suitable opportunities, we would return cash to shareholders. Mr. Chandra continued.

Mr. Punit Goenka, Managing Director and Chief Executive Officer, ZEEL, commented, In a year marked by fair degree of economic uncertainty, our foundation of leading brands, unmatched global footprint, and a strong financial position proved that we have the right fundamentals for growth even under challenging economic conditions. We ended fiscal 2010 on a high note, gaining better viewership share across channels combined with improved revenue share, better operating margins and increased cash flows.

I am confident that our content-focused approach combined with better monetization of subscription revenues, especially from digital markets, will contribute to the company delivering steady and attractive shareholder returns in the years ahead as well. The coming fiscal should benefit from a better economic climate and we remain focused on delivering superior content to viewers and a stronger relationship with our consumers. Mr. Goenka added.

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