Zee News Ltd has reported a net profit of Rs 191 million in the third quarter ended December 31, 2009, as against Rs 151 million in the corresponding period of last fiscal. Consolidated EBITDA (Earnings Before Interest Tax Depreciation and Amortisation) for Q3 FY10 was Rs 364 million, an increase of 21.6 per cent as compared to the same quarter last year.
A 25.6 per cent increase in advertising revenue at Rs 1,402 million and an 18.8 per cent increase in subscription revenues at Rs 280.6 million, led to an increase of 19.3 per cent in Zee News’ total operating revenues, taking it to Rs 1,706 million. The company launched three new channels this quarter – Zee Tamil, Zee Ghantalu and Zee News UP.
Subhash Chandra, Chairman, Zee News Ltd, stated, “The company has maintained its growth momentum and going forward, with renewed focus on brand- building, programming and positioning, each of our channels should capture a bigger market share both in terms of viewership and revenue.”
The company will de-merge its six channels – namely, Zee Marathi, Zee Bangla, Zee Talkies, Zee Telugu, Zee Kannada and Zee Cinemalu – along with the assets and liabilities pertaining to these businesses to Zee Entertainment Enterprise Ltd (ZEEL) by way of swap share ratio. The appointed date for the de-merger of regional entertainment business is January 1, 2010. The entire process of approvals is expected to be completed by March 2010.
Chandra added, “To further build on its existing strength, Zee News Ltd now is on the path to consolidate its news operations and unlock tremendous cost and synergy benefits going forward. Zee News Ltd has with it all essential pre-requisites that would make it a news powerhouse going forward, and the next media explosion driven by digitisation would surely help this process catch up speed.”