Zee Network, has reported a sharp fall of 25 per cent in net profit to Rs 47.4 crore for the third quarter ended December 2000, against a profit of Rs 64 crore in the corresponding period of previous year. There has been a fall in net earnings despite an increase of 9 per cent in its total income to Rs 265 crore (Rs 242 crore), indicating erosion in its profit margins.
Expenditure on new initiatives and higher cost of competition during the period also impacted the growth in its profits. The drop in net profit is also due to substantial increase in its interest burden to Rs 11.18 crore (Rs 2.34 crore) during the quarter.
With Q3 results, the aggregate net profit of Zee Network for the nine months increased marginally by four per cent to Rs 144 crore (Rs 138 crore). Gross income rose 24 per cent to Rs 717 crore (Rs 576 crore). Of the total income, other income was a huge at Rs 38 crore (Rs 9.9 crore). Interest charges on borrowings shot up by nearly four-fold to Rs 36 crore (Rs 9.7 crore).
Zee Telefilms, recorded a rise in net profit by 29 per cent to Rs 32.14 crore (Rs 24.86 crore) for the third quarter (Oct-Dec) of 2000-01. Total income grew 25 per cent to Rs 113 crore (Rs 90 crore).
The combined net profit for nine months spurted 47 per cent to Rs 91 crore (Rs 62 crore) and gross income was up 37 per cent to Rs 299 crore (Rs 219 crore).
The last quarter of saw Zee TV take a major hit both in terms of loss of advertising revenue as well as audience perception with the collapse and withdrawal of the much-advertised game show 'Sawal Dus Crore Ka'.