Zee Entertainment Enterprises Ltd (ZEEL) has reported a consolidated revenue of Rs 6,770 million in Q1 of FY11, representing a 42.2 per cent growth over the corresponding period in the previous fiscal. Net profit was up 64 per cent at Rs 1501 million.
Advertising revenues were up by 90.4 per cent year-on-year at RS 3,769 million. The consolidated operating profit (EBITDA) for the first quarter stood at Rs 1,870 million.
The numbers are after consolidating the financials of Taj TV Ltd (Taj) and ETC Networks Ltd (ETC).
Commenting on the results, Subhash Chandra, Chairman, Zee, stated, “Indian economy continues to grow at a healthy pace and we look forward to a robust growth in all sectors. The revival in advertising spends in the country is a clear sign of buoyancy. The Indian television industry continued its march towards digitisation with a healthy addition of 2.5 million digital homes on DTH alone. Additionally, there are many homes, which are turning to digital cable, too, though the level of transparency is very poor on digital cable systems and there is urgent need to address the issue for the healthy development of the industry. The 3G rollout would bring another opportunity to monetise our content on the mobile platform.”
Chandra further said, “Zee Entertainment continues to deliver industry leading performance. Our advertising revenue growth reflects the efficiency of our content business, across genres and across languages. The regional language channels continued to grow in their respective genres. Zee has a strong balance sheet and we look forward to growing our businesses both organically and inorganically.”
Punit Goenka, Managing Director and Chief Executive Officer, ZEEL, commented, “Our performance during the quarter is reflective of the robust growth in advertising spends in the country. Despite a heavy sports calendar during the quarter on competing channels, our portfolio has done very well, both in terms of viewership ratings and revenues.”
Elaborating further on the performance, Goenka said, “The DTH revenues are driving our subscription growth for the last several quarters. During this quarter, we have seen some growth in domestic cable revenues too. The regional channels have also recorded strong operating results. The outlook for the year remains buoyant and we look forward to a robust growth during the year.”