Press Releases2012

May 18, 2012
ZNL declares its Q4 FY12 results

NOIDA, India; May 16, 2012 – Zee News Limited (ZNL) (BSE: 532794, NSE: ZEENEWS) today reported fourth quarter fiscal 2012 consolidated revenues of Rs. 863.6 million. Consolidated EBITDA stood at Rs. 184.1 million with strong EBITDA margins of 21.3 % up from 18.2% in the last year.

Net Profit before tax stood at Rs. 197.8 million, a growth of 65.3% over last year. The Board of Directors, in its meeting held today, has approved and taken on record the audited financial results of ZNL for the quarter ended on March 31, 2012.

Operating Highlights

The Company continued to display strong operational prowess on various financial metrics. Bucking the market trends, Zee News Ltd., showed a strong growth of 65.3% in Net Profit Before Tax in the quarter ending March 31, 2012. In the same vein, the Net Profit Before Tax for the full year 2011-12 grew by 51.4% at Rs. 470.3 mn.

EBITDA margins showed an improvement on a YoY basis from 18.2% in the Q4 last year at Rs. 138.3 mn to 21.3% at Rs. 184.1 mn for the current year quarter ended Mar 31, 2012. EBITDA for the year had a growth of 25.8%, increasing from Rs. 424.0 mn in last year to Rs. 533.5 mn in the current year.

The overall revenues for the quarter increased by 13.8% to Rs. 863.6 mn in a quarter which is expected to have muted revenue increase for other media firms. Meanwhile, the overall revenues for the full year 2011-12 grew by 11.0%, increasing from Rs. 2,767.9 mn to Rs. 3,072.2 mn. This includes revenue accrued due to transfer of part of inventory of programs and films related to Zee Tamil to ZEEL subsequent to Zee Tamil discontinuance, which has its contra effect in the cost of operations.

As has been the trend in earlier quarters, Subscription revenues showed a steady growth and were at Rs. 208.3 mn, a 19.1% increase over the last year. The full year 2011-12 Subscription revenues grew by 1.0% to Rs. 742.7 mn on a consolidated level. This sets a strong base for the anticipated benefits of upcoming Digitization. Another point to be noted here is that 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, 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.

The Advertising revenues for the full year 2011-12 grew by 2.2% to Rs. 2,004.6 mn despite discontinuation of Zee Tamil. The quarter's advertising revenues were at Rs. 562.9 mn as compared to the last year's Rs. 560.6 mn.

The existing channels Zee News, Zee Business, Zee 24 Taas, Zee Punjabi & 24 Ghanta continued to grow in terms of revenues by 15.5% for the quarter to Rs. 822.3 mn from the last year's Rs. 711.8 mn. EBITDA margins continued to be strong at 28.1%. Correspondingly, for full year 2011-12, the existing channels increased their revenues by 13.3% to Rs. 2,940.4 mn.

New business losses have come down to Rs. 47.0 mn for the last quarter from the loss of Rs. 108.2 mn in the same period the last year due to discontinuance of Zee Tamil. For the full year 2011-12, the losses were Rs. 227.4 mn, significantly lower than previous year's losses of Rs. 442.7 mn.

Mr. Subhash Chandra, Chairman, ZNL, said, “The Indian economy has been operating on strong fundamentals. While its growth may have slowed down in 2011-12, we hope that the New Year would see constructive steps to spur growth across various sectors. Specifically for Media, the implementation of Digital Addressable System is right step in this regard. Our company, with its continued emphasis on Subscription revenues is expected to get a leg up in its endeavour to have continuous significant growth.

He added, “Continuing consolidation in the industry is another sign of it maturing and more efficiencies being built in. Our Group has been in thick of things with the formation of Media Pro Enterprise Ltd. This would lead to better positioning of Zee News Ltd. in the news distribution space. Meanwhile, as we move into the new financial year, we are emphasizing even more on innovative growth with Network leveraged properties.”

Mr. Punit Goenka, Managing Director, ZNL, said, “We have always been thought leaders and innovators in the news space to provide better experience for the mature news viewer. In a scenario where the viewer has to bear with long ad breaks only to get updated with 'entertainment' loaded news, our company has taken the initiative of 'Maximum News, Minimum Break' for our flagship channel Zee News wherein we have reduced our inventory by over 30%”

He added, “Our emphasis on placing the customer first, be it the viewer or the advertiser, coupled with efficient Network operations has resulted in robust growth in EBITDA in a quarter, and a year, where growth of most of the companies is expected to be low. The company is now poised to explore expansion opportunities to leverage the impending digitization. The company has already initiated expansion in the new media arena with the launch of 3 new regional websites.”

Mr. Barun Das, CEO, ZNL, said, “We have come out of the economic slowdown stronger than most. Our aggressive focus on ad revenues from non-traditional streams has helped us post a better growth compared to the industry which is expected to stay flat or show early single digit growth. Meanwhile, our EBITDA margins have stayed strong. We continue to be committed to long term growth in all aspects of business. Being on a healthy growth path post demerger of GECs, a series of strategic initiatives are on the cards which will be implemented in due course of time.”

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