Zee Entertainment Enterprises (ZEE) announced its third quarter results on 22 January. For the quarter ended December 2013 of FY14, the company’s consolidated revenue stood at Rs 11,884 million, growing by 26.6 per cent compared to the corresponding previous quarter. Operating profit (EBITDA) for the quarter stood at Rs 2,907 million, up by 11.3 per cent over Q3FY13.
ZEE’s profit after tax (PAT) was at Rs 2,136 million, a jump of 10.5 per cent over the Rs 1,933 million reported in Q3FY13. Net profit for the period stood at Rs 1,583 million, significantly down from Rs 1,914 million reported in the corresponding period a year ago.
Advertising revenues for the quarter were Rs 6,843 million, recording a growth of 34.3 per cent over Q3FY13.
Subhash Chandra, Chairman, ZEE, stated, “India’s economic health continues to remain precarious. Given this background, the growth of India’s Media & Entertainment industry has been heartening. The industry has shown a robust growth in 2013 and is expected to record double-digit growth in 2014 as well. While the overall economic environment stays challenging, ZEE continues to grow its business at a healthy pace. The network shares are on an uptrend, buoyed with the addition of new channels in the network. Our investments in the sports business continued during the quarter. We also look to expand our portfolio to take advantage of the growth opportunities ahead of us. These investments are in line with our philosophy of enhancing long term shareholder value.”
Punit Goenka, MD and CEO, ZEE, commented, “ZEE has had a satisfactory quarter on the operational front. During the quarter, we have seen robust growth in our network’s viewership share. The two new launches – &pictures and Zee Anmol – have made handsome gains and have added to the network strength. The company has shown a healthy increase in advertisement revenues even though there has been a reduction in inventory across the board as per TRAI regulation. Once again we have outperformed the television industry advertising revenue growth and have delivered 34 per cent yoy growth supported by good contribution from the sports business. Operating margins were lower due to higher losses in sports business because of a heavy event calendar. Rupee depreciation earlier this year has also had a negative impact on the sports business performance. We are hopeful of improved sports performance in the years ahead.”