Press Releases2012

Jan 18, 2012
ZNL declares its Q3 FY12 results

Zee News Limited (ZNL) (BSE: 532794, NSE: ZEENEWS) today reported third quarter fiscal 2012 consolidated revenues of Rs. 782.7 million. Consolidated EBITDA stood at Rs. 192.7 million with strong EBITDA margins of 24.6% up from 18.1% in the last year.

Net Profit before tax stood at Rs. 162.4 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, 2011.

Operating Highlights

Despite slowdown in the economy, Zee News Limited has posted a strong EBITDA margin of 24.6% up from 18.1% margin last year signifying strong operational performance by the company. EBITDA stood at Rs. 192.7 mn for the quarter with a YoY growth of 43.2%.

The overall revenues increased by 5.1% to Rs. 782.7 mn. This includes a onetime Rs. 17.9 mn transaction of sale of Tamil programs and film rights to ZEEL.

Subscription revenues for the quarter were Rs. 192.7 mn with a growth of 3.7%. The real growth in the revenues was higher as they were booked net of expenses. This change was necessitated due to the formation of Media Pro, 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.

Due to overall slowdown as well as the effect of festival season overlapping with previous quarter, the Advertising revenues have degrown slightly by 4.2% at Rs. 518.8 mn for the quarter ended December 31, 2011.

The existing news channels Zee News, Zee Business, Zee 24 Taas, Zee Punjabi & 24 Ghanta reported a growth of 8.8% in revenues at Rs. 751.3 mn and a growth of 10.9% in EBITDA at Rs. 249.8 mn. The EBITDA margins for the existing channels continue to be noteworthy at 33.3% up from 32.6% on a YoY basis.

New business EBITDA losses have come down to Rs. 57.1 mn from the loss of Rs. 90.7 mn in the same period the last year due to discontinuance of Zee Tamil.

Mr. Subhash Chandra, Chairman, ZNL, said, "The Indian economy has been facing headwinds of increased inflation, interest rate hikes and bearish markets forcing the GDP growth forecast to pare down to 7% or so. My faith in the Indian economy for the long term remains intact. While there are as many views of impending slowdown in the economy as there are of bounce back, I remain cautiously optimistic in the short run that the situation is likely to improve in the next few quarters. The Company continues with its focus on innovative growth and I have full confidence that we will be able to come out stronger than most in the current year, in line with the trend of our past performances."

He added, "As has been pending for a few years, the media industry has begun to consolidate. This is obvious from the various deals being announced over the past few months. We see this consolidation as a confident step forward towards making this industry more profitable."

Mr. Punit Goenka, Managing Director, ZNL, said, "While the investment related policy decisions have been under pressure due to current political environment, Parliament's clearing of cable digitization signals the establishment's commitment to make the media industry more efficient. The ad industry, meanwhile, has been hit as the advertisers have increasingly become choosy about their spends. The euphoria of a sustained industry growth which was prevalent at the beginning of the year has been dampened considerably. However, ZNL has shown exceptional operational efficiencies and posted strong financial results for the quarter. Going forward, we hope to maintain the edge in our performance."

Mr. Barun Das, CEO, ZNL, said, "We had sensed the slowdown in the industry by the beginning of the last quarter and made adjustments in our operations accordingly. Our top lines and strict vigil on our costs has resulted in our margins being strong at 24.6% despite slowdown, which is likely to be an exception. With the Media Pro initiative settling down, our subscription revenue has shown growth towards the end of the quarter and it is a trend that is likely to continue. We remain confident regarding our ability to grow in the current financial year."

Visit Zee News website for complete Earning Release and Financial Results

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