Subhash Chandra’s Zee Telefilms and Aroon Purie-promoted TV Today on October 20 announced their second quarter results ending September, with both declaring profits, though the former saw its profits declining.
Zee Telefilms' net profit fell by 38.5 pc to Rs 42.5 cr for the quarter ended September 30, 2005 as compared to Rs 69.1 cr for the same quarter last year. The consolidated revenue of the company rose by 8.6 pc to Rs 335.9 cr from Rs 309.2 cr during the same perod last year.
The consolidated operating profit of Zee Telefilms stood at Rs 58.5 crore, representing a 43.2 per cent decline over the same period last year. This is due to the expenses on initial investments on new activities – namely Zee Telugu, Zee Smile, Zee Sports and others – deemed essential to capture rapidly cluttering up distribution space on cable and other platforms, the company said in a statement
Elaborating on the declining profit, Subhash Chandra, Chairman and MD, Zee Telefilms, said, “Over the past decade, our company has built a valuable portfolio of television programming assets, including Zee TV, Zee Cinema, Zee News and the regional programming portfolio. Our business is global, but our commitment goes right to the grassroots level, where we aim to provide fulsome entertainment to our viewers. We have, therefore, made fresh investments in our new channels, all covering new genres. Although this may have a short-term impact on our financials, it further strengthens the long-term prospects of our company.”
He further said, “Our company has identified cable distribution as a thrust area for the next financial year and is gearing up for a major push in that area. We have large and well-distributed cable assets that must be leveraged using new technology platforms and positioned for much higher value realisation. A series of measures have been identified and plans are being chalked out under its new CEO, Jagjit Singh Kohli.”
Meanwhile, TV Today saw its net profit growing to Rs 2.37 crore in the second quarter as against a net loss of Rs 1.12 crore during the corresponding period last year. The total income is up 16.6 per cent at Rs 34.07 crore as against Rs 29.22 cr last year. The earning per share (EPS) for the quarter stands at Rs 0.41 and for the first half year at Rs 1.41 as against EPS of Rs 0.87 for the corresponding period last year.
G Krishnan, CEO, TV Today, was quite upbeat about the results. “Despite a highly competitive market, we are still the market leader and are on a high growth track. We have been constantly innovating with our programming. We have launched new programmes on Headlines Today. Our new channel, Tez, has been doing very well with a viewership of 2.5 million already. We have also expanded to the American market. We will continue to deliver value to our investors and advertisers by expanding the news base,” Krishnan said.
However, investors seemed unimpressed and the share of TV Today fell by 3.76 per cent to Rs 75.60 by the end of the day on October 20. Zee Telefilms share plunged by 4.77 per cent to Rs 155.85 by day-end.