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indiantelevision.com Team
MUMBAI: Subhash Chandra-owned Zee Entertainment Enterprises Ltd (Zeel) reported a 17.2 per cent rise in consolidated net profit for the quarter ended 30 September helped by a strong growth in revenues. Its net profit on a standalone basis for the second quarter, however, was down 42 per cent on a sharp rise in expenses.
Zeel‘s consolidated net profit in the second quarter was Rs 1.87 billion compared with Rs 1.59 billion a year earlier as its operating revenues rose 33.8 per cent to Rs 9.53 billion compared with Rs 7.12 billion a year earlier.
The company‘s net profit on a standalone basis in the second quarter was Rs 679 million, down from Rs 1.18 billion a year earlier as rise in expenses far outstripped growth in operating revenues. Its standalone operating revenues during the quarter was up 22 per cent at Rs 6.36 billion from a year earlier against a 47 per cent rise in standalone expenses year-on-year at Rs 5.40 billion.
The company‘s standalone businesses include entertainment and sports business in India.
CONDENSED STATEMENT OF OPERATIONS
| (Rs million) |
Second Quarter
|
%Growth | |
|
FY2013 |
FY2012 (Unaudited)
|
YoY
|
|
| Operating Revenues | 9,535 | 7,128 | 34% |
| Expenditure | 7,359 | 5,108 | 44% |
| Operating profit(EBITDA) | 2,176 | 2,020 | 8% |
| Add: Other Income | 260 | 289 | -10% |
| Less: Depreciation | 96 | 78 | 22% |
| Less: Finance Cost | 23 | 10 | 138% |
| PBT before exceptional items | 2,319 | 2,221 | 4% |
| Less: Tax Expense | 444 | 621 | -29% |
| Less: Short Provision for tax Earlier Years |
|||
| Profit After Tax for the Period | 1,875 | 1,600 | 17% |
ZEEL‘s revenues from sports business more than doubled to Rs 1.81 billion in the second quarter from Rs 881 million a year earlier. Its revenues from businesses other than sports which include a bouquet of entertainment channels was up 23 per cent at Rs 7.72 billion in the second quarter compared with Rs 6.24 billion a year earlier.
The company‘s consolidated advertising revenues at Rs 5.28 billion were 33.7 per cent higher than a year earlier contributed significantly by sports business, while subscription revenues rose 35.7 per cent to Rs 3.95 billion from a year earlier. Domestic subscription revenues stood at Rs 2.81, while international subscription revenues were Rs 1.14 billion.
Zeel said its consolidated operating profit for the second quarter was Rs 2.17 billion, 7.8 per cent higher than a year earlier. Its operating profit margin for the quarter was 22.8 per cent.
Zeel chairman Subhash Chandra said. "This (second) quarter the company has continued to build on the momentum set in the first quarter. We look forward to continuing our investment in the television media space and take advantage of the growth opportunities ahead of us."
The company expects television advertising spends to turnaround after having been impacted this year by the economic slowdown.
"We are confident of continued double digit growth of television advertising spends over the next few years. At ZEE, we have created a good portfolio of assets and will continue to make prudent investments with a clear focus on returns over the long term," said Zeel managing director and CEO Punit Goenka.
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