Zee Entertainment Enterprises Ltd has reported total revenues of Rs Rs 6,983 million for Q1 FY12, a growth of 3.1 per cent. Net profit for the quarter ended June 30, 2011 stood at RS 1,302 million, a growth of 7.5 per cent as compared to the corresponding period last fiscal.
Advertising revenues for Q1 FY12 grew marginally by 0.5 per cent at Rs 3,787 million, while subscription revenues were up 16.7 per cent at Rs 3,051 million. Operating profit (EBITDA) for the quarter ended June 30, 2011 was Rs 1,560 million, with the operating profit margin for the quarter at 22.3 per cent.
In a prepared statement, Subhash Chandra, Chairman, ZEE, said, “Television industry continues to grow its subscriber base, though advertising spends have been impacted. An estimated 2.9 million DTH homes got added during the quarter across the country, reflecting the positive outlook for digitisation and a fast growing pay television market. At the end of June 2011, there are now 37.0 million DTH subs in the country, up from 34.1 million during March 2011. We expect some consolidation to take place in the television media space. Creation of MediaPro Enterprise is one step in that direction, which will help develop the pay revenue stream for the industry.”
Commenting on the first quarter results of the company, Chandra added, “During the quarter, we have seen some pullback in ad spends. It is encouraging to see that continued digitisation is reducing our reliance on advertising revenues as there is robust build-up in subscription revenue stream. Our investments in the sports genre have continued during the quarter.”