ZEEL Q2 net profit up 362 pc at Rs 971 mn; Zee News net up 97 pc at Rs 57 mn

ZEEL Q2 net profit up 362 pc at Rs 971 mn; Zee News net up 97 pc at Rs 57 mn

Author | exchange4media Mumbai Bureau | Wednesday, Oct 24,2007 8:19 AM

ZEEL Q2 net profit up 362 pc at Rs 971 mn; Zee News net up 97 pc at Rs 57 mn

The second quarter results have brought good tidings for Zee Entertainment Enterprises Ltd (ZEEL), which has reported a whopping 362 per cent rise in its net profit at Rs 971 million in the quarter ended September 30, 2007. ZEEL’s Q2 ad revenue stood at Rs 2,195 million, up 28 per cent as compared to the corresponding period last fiscal.

ZEEL’s consolidated revenues for the second quarter stood at Rs 3,986 million, a hike of 14 per cent over the corresponding period in the previous fiscal. The media entity’s consolidated operating profit rose a whopping 508 per cent at Rs 1,321 million, while profit before tax was Rs 1,405 million.

Subhash Chandra, Chairman, ZEEL, said, “We had a commendable second quarter performance, with operating profit growth of 508 per cent over the corresponding quarter of the last fiscal year. This substantial growth has been led by robust increase in advertising revenues. Our flagship channel, Zee TV, gained leadership in the last few weeks of this quarter and the support of other channel’s rising GRPs will provide the requisite momentum for growth in advertising revenues.”

Pradeep Guha, CEO, ZEEL, said, “With GRPs on a continuous rise across all channels, we have introduced a slew of ad sales initiatives, focusing on improving inventory utilisation, attracting higher yielding categories of business and increasing Effective Rates across all time bands – with special focus on prime time, all of which have resulted in a revenue growth rate that is much faster than that of the industry.”

Meanwhile, Zee News Ltd (ZNL), too, has reported a hike in net profit for the second quarter. Zee News’ Q2 net is up 97 per cent at Rs 57 million as compared to Rs 29 million in the corresponding quarter of the last fiscal. ZNL’s operating revenue stood at Rs 776 million, representing a 44 per cent jump over the year-ago period, while operating profit stood at Rs 105 million, up from Rs 18 million.

ZNL’s Q2 advertisement revenue was Rs 608 million, up 57 per cent as compared to the corresponding quarter of the last fiscal. Subscription revenue stood at Rs 150 million, up 9 per cent.

“Zee News Ltd has strengthened its position in the marketplace during Q2 FY08. Advertising revenues have grown by 57 per cent, while subscription revenue improved by 9 per cent during the quarter. While ‘Zee Marathi’ and ‘Zee Bangla’ are steadily climbing the rating charts, the other existing businesses of Zee News Ltd have also shown consistent growth momentum. The trends in the new businesses are encouraging with Zee Telugu and Zee Kannada improving their performance despite hyper competitive business environment,” Chandra added.

Laxmi Narain Goel, Managing Director, Zee News Ltd, said, “Zee Marathi has maintained its Numero Uno position in the Marathi genre, while 24 Ghanta has also delivered a huge GRP increase and leading in Bangla news genre in Q2 FY08. We have met the bottomline target during the second quarter and this fortifies our belief that good people skill, sensitivity to changing needs of viewers, agile strategies, new offerings in content should stand us in good stead for a better future.”

“The existing businesses have shown consistency in performance and revenues of existing businesses have grown by 42 per cent the new businesses have also performed well in revenues and registered a growth of 80 per cent during the second quarter. We are also pleased to report that the operating margins on our existing businesses increased from 30 per cent during Q2 FY07 to 33 per cent during Q2 FY08,” Goel added.

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