Press Releases2012

Jul 20, 2012
ZNL declares its Q1 FY13 results

Mumbai, India; Jul 19, 2012 - Zee News Limited (ZNL) (BSE: 532794, NSE: ZEENEWS) today reported first quarter fiscal 2013 consolidated revenues of Rs. 688.8 million. Consolidated EBITDA stood at Rs. 53.4 million. Net Profit before tax stood at Rs. 40.1 million and Operating Expenditure at Rs. 635.5 mn. 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, 2012.

Operating Highlights

  • Despite the flagship channel, Zee News, taking inventory 30% cut and operating in a difficult economic and industry environment, Zee News Ltd. continued to drive growth in the Operating Revenues with 8.2%. The Operating Revenues stood at Rs. 688.8 mn as compared to previous year's Rs. 636.6 mn.

  • Ad revenues displayed better growth than the news industry in general despite the inventory cut of the flagship channel with a 6.2% growth at Rs. 463.2 mn as opposed to Rs. 436.4 mn in the same period during last year.

  • Subscription Revenues showed a slight degrowth of 3.0% at Rs. 176.0 mn. However, the real growth in Subscription Revenues was higher as they were booked net of expenses. This change was necessitated due to the formation of Media Pro with effect from Jul 1, 2011, a joint venture, which pays subscription revenues to ZEE, net of expenses. Hence, the numbers are not comparable to those of corresponding period last year. We expect the completion of Phase 1 of Cable Digitization to add substantially to the Subscription Revenues.

  • EBITDA stood at Rs. 53.4 mn as opposed to Rs. 76.6 mn on account of increased expenses due to general inflationary trends.

  • ZNL reaffirmed its leadership amongst the various News Networks and was No. 1 in relative share in Top 6 metros for the Network. (Source: TAM, Week 14-26, CS 15+, 6 Metros).

  • Although overall viewership position for Zee News, our flagship channel, has consolidated at no 4 for the general news viewer at 12%, the channel was No. 2 in terms of Time Spent Per Viewer for the premium viewer and retained its leadership in the News Content with 17.3% news content share in Top 8 channel scenario. (Source: TAM, Week 14-26, News Bulletin, CS 15+ for general news viewer, CS 25+ AB, Top 8 Metros).

  • Zee Business, India's first 24-hour Hindi business channel, continuous to reign supreme. As per the Q1 13 weeks average, Zee Business garnered a channel share of 25% – a strong No. 2 position in the 6 channel business news genre. (Source: TAM, Week 14-26, TG: CS 15+, HSM)

Mr. Subhash Chandra, Chairman, Zee News Ltd., said, "There is an overhang of inflation which is looming over the different sectors as well as the consuming class in India. While the perceived lack of action on reforms is being talked about, the India story is still perceived to be strong in the global arena. Always having a focus on current deliverables, our strategies are born out of a long term vision. This has enabled us to tide various troubled waters."

He added, "A couple of aspects of business environment are expected to improve with slow but sure Cable Digitization. Our results are in line with our expectations in a scenario wherein growth is under pressure for a lot of sectors."

Mr. Punit Goenka, Managing Director, ZNL, said, "To encash in on Cable Digitization, we have cut down inventory of our flagship channel Zee News took by 30% under the Maximum News, Minimum Breaks initiative. While, the company has shown revenue growth despite the inventory cut, the viewership increase should happen in due course of time. The delay in deadline of Phase 1 of Cable Digitization is a speed bump in improving the business models of television news broadcasters. While the delay is certainly disappointing, our existing strength in Subscription Revenues should see us through this period of transition. Our New Strategic Initiatives plan is in place to leverage increased viewer choice as well as improved business model post Cable Digitization."

He added, “Meanwhile, we continue to ensure that the brand salience of the individual channels in News Network is maintained and strengthened through our various marketing activities."

Mr. Barun Das, CEO, ZNL, said, "Zee News Ltd. has always been prudent in news operations. While looking at the current economic environment, we have tightened our belts on our operational expenses; we have earmarked a separate set of investments towards strategic programming and marketing initiatives. With Cable Digitization being pushed back there are challenges in the future. But since government and other stakeholders are committed to Cable Digitization, a company like us with focus on multiple revenue sources would stand to gain immensely in the long term."

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