MUMBAI: Zee News Ltd (ZNL) has posted a fiscal first-quarter consolidated net profit of Rs 33 million on a revenue of Rs 648.5 million.
The comparing quarter a year ago had six regional general entertainment channels which powered a net profit of Rs 119.1 million for the three months to 30 June 2009. Since 1 January 2010 the regional GECs have moved to group company Zee Entertainment Enterprises Ltd.
Ebitda for the quarter under review stood at Rs 81.2 million and profit before tax at Rs 55.3 million.
ZNL's advertising revenue grew 14.5 per cent, a satisfying growth considering that the year-ago quarter benefitted from political ads for the general elections.
The expenses of the company stood at Rs 567.3 million
ZNL posted Ebitda profit of Rs 208.3 million from its existing business (Zee News, Zee Business, Zee 24 Taas, Zee Punjabi and 24 Ghanta). The company, however, suffered Ebitda loss of Rs 127.1 million from its new business (Zee Tamizh, Zee 24 Ghantalu and Zee News UP).
ZNL chairman Subhash Chandra said, “Continuing its sound performance in FY 09-10, ZNL has started FY 10-11 with a great zeal. Immediately after de-merger the company’s aim was to consolidate its existing operations. Our focus on innovation, efficiency enhancement, and further rationalisation of cost has enhanced our competitive advantage and has resulted in such encouraging performance.”
On the first quarter numbers, Chandra added, “ZNL has out-performed the industry in Q1 of FY 2010-11.The advertising revenue of the company grew by 14.5 per cent, which is quite creditable given the fact that last year during the same period news genre enjoyed an unprecedented revenue growth owning to general elections of the Country. Aggressive business strategy, coupled with operational efficiency has enabled us achieve a 12.5 per cent Ebitda margin for the company despite the losses accruing from the three newly launched channels. In a cluttered television news market where profitability is a prerogative of only a select few, ZNL’s performance certainly stands apart.”
