Press Releases2010Apr 22, 2010
ZNL encourages performance of News operations
Zee News Limited declares results for quarter ending March 31, 2010; with consolidated revenues of Rs. 601 million and and EBITDA of Rs.39 million. The regional channels were demerged w.e.f January 2010.« Back
Pursuant to receipt of all statutory and regulatory approvals including approval of the Hon'ble High Court of Bombay, scheme of demerger of the Regional General Entertainment Channels (R-GEC) Business Undertaking has become effective on March 29, 2010, from the appointed date January 1 2010. Previous quarter numbers are hence not comparable.
Zee News Limited (ZNL) reported encouraging numbers; Rs. 39 millions EBITDA despite the losses of Zee Tamil, Zee News Uttar Pradesh & Zee 24 Gantalu.
The existing news operations comprising of Zee News, Zee Business, Zee 24 Taas and 24 Ghanta recorded 30% growth YOY in advertising revenues for the quarter.
Zee News continuing with its sensible news focus gained viewership share.
24 Ghanta continues with its undisputed leadership amongst the Bengali news channels, while Zee 24 Taas leads the pack in Mumbai.
Zee Business continues with its supremacy during the stock market band.
Amongst the newly launched channels, 'Zee News UP' has emerged as the steady No.1 while 'Zee 24 Gantalu' has established its credentials as a serious news channel in a cluttered news market.
Zee News Limited (ZNL) (BSE: 532794, NSE: ZEENEWS) reported fourth quarter fiscal 2010 consolidated revenues of Rs. 600.6 million, consolidated EBITDA of Rs. 38.8 million, and PAT of Rs. 28.2 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 March 31, 2010.
Mr. Subhash Chandra, Chairman, ZNL, said, Zee News Limited is all set to embark on a new and promising trajectory after the demerger of the company was formally concluded. Our aim is to consolidate our commanding position in the news genre and spread out our wings even further in the regional and national arena. The company is uniquely poised to accrue benefits from the synergies possible from such an arrangement. Resources from across the spectrum of channels will be pooled together and shared, giving us an edge over competition and also immense cost benefits.
Commenting on the quarter results, Mr. Chandra said, ZNL has performed well in the last quarter of this financial. It has shown robust growth in revenues through the year, despite the fact that the market has not completely recovered from the recessionary trend. The demerger will have a financial implication that will reflect in the numbers in the future. I am confident that greater focus on a particular genre and our regional presence will unlock potential for growth, both in terms of size and earnings.
Mr. Laxmi Narain Goel, Managing Director, ZNL said, Our greater concentration on the regional segment has borne fruit. There are three new channels in our bouquet of which Zee News Uttar Pradesh and Zee 24 Ghantalu have now completed a one successful year of operations. Zee News UP is now firmly entrenched as the leader in the cow belt of India and is showing impressive growth in viewership numbers. Zee Ghantalu is also finding its feet, while Zee Tamil is cutting costs and experimenting with a newer and more innovative approach. These initiatives will help us make firm inroads in the southern markets as well.
Our revenues continue to grow through advertising and subscriptions. Our flagship channel, Zee News, has been and is the driver, but Zee Business is also making its presence felt increasingly as a top contender. Some of our other regional channels are already recognized as No. 1 players of their respective states and this is helping our top lines, he added
Mr. Barun Das, CEO, ZNL, said, Our fourth quarter results are extremely heartening and reflect a promising future. The demerger will throw up some exciting opportunities as we go ahead. We had leveraged the low cost entry opportunity during the economic recession and are now well placed to grow from here. With our diverse news offering, we are already the No. 1 news network of the country.
Our No.1 network status, as well as the individual leadership positions of several of our channels, will give us the competitive edge, even as we plan our future road map. We will continue to be vigilant about our revenue compositions and cost efficiency, and look to using our operational advantages to the utmost, he added.