Zee Entertainment Enterprises Ltd (ZEEL) has reported its first quarter consolidated revenues of Rs 3,916 million, representing a 35 per cent growth over the corresponding period in the previous fiscal. The consolidated operating profit stood at Rs 1,197 million. These are higher by 81 per cent as compared to the corresponding quarter last fiscal. Operating profit margin rose by 30.6 per cent from 23 per cent, as compared to the corresponding quarter last fiscal.
Profit before tax for the first quarter of fiscal 2007 was Rs 1,225 million, while net profit was Rs 813 million, recording a growth of 51 per cent over the corresponding period last year.
The company registered advertisement revenue of Rs 2,044 million for the first quarter ended June 30, 2007, an increase of 47 per cent as compared to the corresponding period last fiscal. The average channel share of the flagship channel increased to 25 per cent within the general entertainment genre, which increased by 10 per cent from the previous quarter.
Subhash Chandra, Chairman, ZEEL, said, “We are pleased that operating margins have improved to 30.6 per cent, compared to the 23 per cent in the first quarter last fiscal. Most of us are aware of the exciting opportunities ahead of us in the television content business. We are making the right investments in capturing a larger mind share of the viewers, both nationally and globally. With rapid transformation in the Indian media scenario through digitisation, the coming years hold a lot of promise and we are confident of delivering long term shareholder value.”
Punit Goenka, Director, ZEEL, said, “We continued to gain market share in the general entertainment genre. Zee TV has maintained its ratings across time bands and has averaged 234 gross rating points during the quarter, and an average channel share of 25 per cent within the general entertainment category, up from 23 per cent during the previous quarter.” He further stated that during the quarter, Zee TV had come closest ever to the genre leader in the last seven years.
Goenka explained that Star Plus’ ‘KBC-3’, which went off-air in mid-April, helped both ‘Kasamh Se’ and ‘Saat Phere’ to regain their respective leadership positions. ‘Sa Re Ga Ma Pa Challenge 2007’ continues to be the leader despite many shows based on a similar theme.
Elaborating on the performance, Pradeep Guha, CEO, ZEEL, said, “Our team has done well, both in gaining viewership share and in monetising that effectively. We are pleased with the good start to the fiscal year. On the international business front, we continued to do well, though rising strength of rupee has impacted our revenues.” Guha further said that in terms of sports, his company had got out of the cricket contract, and that it is looking forward to build franchise in football. He said that the channel would showcase cricket from the Indian Cricket League.
The sports genre for the flagship company saw Ten Sports as a clear winner as it registered a 51 per cent viewership share. Zee Sports and Ten Sports will now look forward to a strong second quarter with a variety of joint ventures. They will increase their joint impact on the market, particularly in August, as both channels will share a new line-up of football rights, including deals with various football clubs.