Zee Telefilms Ltd on Tuesday reported net profit of Rs 310 million in the third quarter over the corresponding period in the previous fiscal. Consolidated revenues of the company in the same period touched Rs 3,777 million, representing a 17.1 per cent growth. Profit before tax for the third quarter of the fiscal 2006 was Rs 395 million.
The consolidated operating profit stood at Rs 365 million, after expensing of initial investments in new activities – Zee Telugu, Zee Smile, Zee Sports and others – amounting to Rs 597 million (15.8 per cent of consolidated revenues). As a result, consolidated operating profits of continuing businesses were Rs 962 million. These are lower by 11.8 per cent as compared to the corresponding quarter last year, mainly due to investments in programming and marketing focused on long term buildup of mainline channels.
“The numbers as published, are after consolidating the financials of ETC Networks Ltd (ETC) for the third quarter of FY2006. Since Zee has divested its stake in Padmalaya, we have excluded the financials of Padmalaya from the third quarter of FY2005,” the company said in a statement.
“Over the last few quarters, we gave focused attention to Zee TV, the flagship channel, and invested across genres of programming, including soaps, musical shows, comedy shows, etc. The efforts have yielded positive results, with Zee TV now firmly at No. 2 in the general entertainment category and showing good upward momentum. Along with Zee Cinema, the No. 1 movie channel and the No. 3 mass entertainment channel after Zee TV, we are a very strong player in the general entertainment space,” asserted Subhash Chandra, Chairman, Zee.
“During the past few months, we have been updating you on our investments in new businesses. The third quarter saw additional investments, particularly on account of Zee Sports, which showcased two important properties – AIFF Football and India-Sri Lanka Test series. Along with other properties, the board of Zee has consciously decided to invest in new properties to strengthen long term business prospects of our company.” Chandra added.
Pradeep Guha, CEO commented, “We have gained significant traction on Zee TV, the flagship channel, which is now firmly the No. 2 general entertainment channel. Currently, gross ratings of Zee TV are almost 50 per cent higher than the next GE competitor and this lead is progressively widening. Our properties ‘Saat Phere’, ‘Sa Re Ga Ma Pa Challenge 2005’ and ‘Sinndoor Tere Naam Ka’ are doing extremely well. Zee Cinema has shown continued strength as the undisputed No. 1 movie channel. We are also strengthening our English and other language offerings, which would show positive results in the near future.”