Zee Telefilms has posted a net profit of Rs 36.75 crore for the third quarter ended December 31, up 65.61 per cent compared with Rs 22.19 crore in the corresponding period of the previous year. Net sales increased 34.22 per cent at Rs 166.44 crore (Rs 124 crore).
The growth, according to the company, was driven by higher pay revenue from domestic and international markets and a strong recovery in advertising revenue. The increase in net profit was also on account of 45 per cent dip in interest cost for the quarter to Rs 7.96 crore (Rs 14.84 crore).
Total expenditure increased to Rs 110.24 crore (Rs 87.94 crore). Zee reported a consolidated net profit (including ETC Network and Padmalaya Telefilms) of Rs 90.19 crore for the quarter, up 27 per cent from Rs 70.88 crore in the corresponding last year. The consolidated operating profit increased by 17.8 per cent to Rs 126.8 crore.
For the group, the topline in the third quarter grew 21.8 per cent to Rs 374.5 crore (Rs 307.5 crore). The interest cost was reduced to Rs 12.16 crore (Rs 22.68 crore).
Subhash Chandra, chairman & managing director of Zee Telefilms, said in a press release: “The third quarter witnessed a 7.7 per cent growth in advertising business. This is in line with our expectations. Our subscription business also grew despite uncertainties on conditional access system.” The company’s advertising business increased from Rs 171 crore in the third quarter of the previous financial year to Rs 184.2 crore in the corresponding quarter of the current financial year.
During the third quarter, the company also announced a major restructuring of group companies that witnessed a closure of non-performing business outfits and consolidation of the group’s international operations.