Zee News Ltd has reported Q1 FY12 consolidated revenues of Rs 636.6 million, while consolidated EBITDA stood at Rs 76.6 million. However, net profit before tax was down 7.8 per cent, from Rs 52.2 million in Q1 FY 11 to Rs 50.9 million in Q1 FY12.
Meanwhile, advertising revenue fell 3.5 per cent to Rs 436.4 million from Rs 454.2 million in the corresponding quarter of the previous fiscal. Subscription revenue was marginally up 0.7 per cent at Rs 181.6 million from Rs 180.3 million in Q1 FY11.
In a company release issued, Subhash Chandra, Chairman, Zee News Ltd, said, “The Indian economy has been affected by unrelenting high inflation and tight monetary policy. The GDP growth outlook has been trimmed down by various agencies from the earlier projections. Given that the news TV industry has degrown considerably, our performance gives us confidence to evaluate expansion in near future.”
At the same time, he said, “A positive, meanwhile, has been the growth of DTH homes – with 2.9 million being added during the quarter across the nation. The figure reflects positively in favour of digitization and indicates a growing scope for pay TV market.”
Barun Das, CEO, ZNL, admitted, “While Zee News Ltd experienced some slowdown in revenues due to some critical spending product categories being under the weather, our cost effectiveness stood us in better stead compared to the industry in terms of healthy balance sheet.”
Punit Goenka, Managing Director, ZNL, said, “We had anticipated this slowdown and had planned accordingly. Going forward, the news genre looks likely to recover traction with eclectic properties that would be seen as viable spending options. In the meantime, the company recently has adopted a new identity infusing freshness in its look and the market has responded enthusiastically to it.”