Indiantelevision.com Team

(29 January 2008 6:30 pm)

MUMBAI: Zee Entertainment and Enterprises Limited (Zeel) has posted a consolidated net profit of Rs 1.13 billion for the quarter ended 31 December, 2007 up 18.4 per cent as compared to Rs 958 million for the corresponding quarter last fiscal.

During the period, operating profit was Rs 1.56 billion, an increase of 15.6 per cent as compared to Rs 1.35 billion in the year ago period. Operating profit margins stood at 30.3 per cent. The operating profit growth has been impacted because of launch of Zee Next during the quarter, which resulted in an increase in programming costs.

The company’s consolidated revenue stood at Rs 5.18 billion, representing a 24.1 per cent growth over the corresponding period in the previous fiscal.

Advertising revenue grew 25.3 per cent year-on-year (YoY) at Rs 2.63 billion while subscription revenue dropped 0.3 per cent YoY at Rs 1.95 billion in the third quarter of FY 08.

Other sales and services was Rs 594 million, a whopping jump of 414 per cent over the corresponding quarter last fiscal, due to higher syndication sales of Ten Sports for its Cricket events during the quarter.

Domestic subscription revenues stood at Rs 878 million, a 13 per cent growth over previous quarter of the current fiscal while international revenues were Rs 1,072 million, up 26 per cent over previous quarter.

The revenues from DTH increased to Rs 175 million for the third quarter, up from Rs 125 million in the second quarter of this fiscal.

The company’s expenditure grew 28.2 per cent to stand at Rs 3.61 billion. Overall, the cost of goods and operations increased to Rs 2.54 billion compared to the Rs 1.72 billion corresponding period last year. This cost includes additional programming cost on account of Ten Sports for its cricket events held during the quarter.

The numbers are calculated after consolidating the financials of Taj TV Limited and ETC Networks Limited. The Board of Directors, has taken on record the unaudited consolidated financial results of Zeel and its subsidiaries for the quarter ended 31 December, 2007.

Zeel chairman Subhash Chandra said, “We have recorded a robust 24.1 per cent growth in operating revenue which is led by advertising revenues growth of 25.3 per cent. Our television broadcasting business continues to lead industry in converting rating success into strong revenue growth. The performance reflects our ability to deliver sustained growth despite lower traction in subscription revenues. We look forward to a strong finish to this year and we are confident of our growth prospects for FY2009.”

“The television broadcasting industry in India, bolstered by fresh digital wave, is attracting every one out there in the global arena and we have seen some new players joining the industry during the last quarter. With increased digitization and more players entering the industry, media consumption would only increase and more customised content offering would be desired. Thus, the future lies in content co-creation where viewers are also given opportunity to participate in what they want to see and how they want to see. Television broadcasting industry’s landscape is certainly changing to a new high and we believe we possess the requisite momentum, infrastructure and skills to set new benchmarks and deliver long-term growth which would be faster than the industry’s growth rate, ” Chandra added.

“During the quarter, average channel share of the flagship channel Zee TV increased to 31 per cent within the general entertainment genre, from 30 per cent in the previous quarter. Zee TV averaged 279 GRPs during the quarter,” the release states.

Zeel whole time director Punit Goenka said, “Our flagship channel Zee TV has averaged 279 GRPs for the entire quarter. During the quarter, we have not only bridged the gap substantially with the genre leader, but have also surpassed it in prime appointment viewing.

"Zee TV today stands tall with over 31 per cent channel share in all day’s ratings, a gain of 2 per cent over the last quarter. Bolstered by newer content in prime time, Zee TV, with channel share of 36 per cent, has also gained 2 per cent over the last quarter."

Zeel CEO Pradeep Guha CEO said, “To further propel our growing popularity in the GEC segment – the largest amongst all genres - we launched Zee Next, a new channel in the GEC space that reflects the changing preference of youth. It is aimed at bridging the existing gap in GEC wherein programming genres like thriller, comedy and action are absent or minimal. Hence, Zee Next will complement the flagship channel Zee TV through such differentiated content. Also, its unique content treatment of storytelling with mass appeal, blending modern and progressive societal outlook with traditional Indian middle class value systems, resonates the values of emerging India.”

In Sports genre, Ten sports and Zee sports combined together have maintained their dominant share of 50 per cent amongst all other relative channels and particularly twice of the closest competitor ESPN. This quarter Zee Sports also showcased the Indian Cricket League (ICL) 20-20 cricket series, live from Chandigarh.

The sports business revenues during the third quarter was Rs 854 million, recording a growth of 102 per cent over previous quarter of the current fiscal. During the quarter, Zee Sports successfully launched the Indian Cricket League (ICL) and the all-new I-League in end of November 2007.

In the fourth quarter of FY2008, Zee Sports would be building up towards the climax of the inaugural I-League as well as would feature live games from second round of I-League. Ten Sports has already begun Zimbabwe’s tour of Pakistan and in March 2008, it will be showcasing Australia's tour of Pakistan.