The Zee Q2 Story: Net profit up 26.7%, ad revenues down 4.2%, spends down 2.3%

18 Oct,2011

By A Correspondent

There is fair reason why Zee Entertainment is said to be the smartest run entertainment company in India today. The ratings are good, but not dramatic. The revenues are down and employee costs are reasonably up. Yet, net profit has leapfrogged. And how!

Says chairman Mr Subhash Chandra, “We have a very strong balance sheet and I am confident that we would take advantage of the growth opportunities ahead of us and will record improved operating performance in the period ahead.” Mr Chandra notes that that his company’s performance reflects the same slowdown in advertising spends that the rest of the television players are facing.


On Monday, Zee Entertainment Enterprises Limited (ZEE) reported its second quarter fiscal 2012 consolidated revenue of Rs 7,184 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 2,075 million and PAT was Rs 1,600 million, representing a growth of 10.1% and 26.7% respectively over the corresponding period in the previous fiscal. The EBITDA margin for the quarter stood at 28.9%. Operating profit (EBITDA) for the quarter ended September 30, 2011 was Rs 2,075 million. Operating profit margin for the quarter stood at 28.9%.


FY2012 does look to be a year of tepid growth, said Mr Punit Goenka, Managing Director and Chief Executive Officer, ZEE, in a press communiqué. “Our strategy during the last few years has been to create a formidable entertainment enterprise and invest in the business in a focused disciplined way”

Meanwhile, Zee has clarified that ad revenues have grown on non‐sports business, but there has been a decline in sports revenues, due to lack of big sporting events in the quarter. This has resulted in a hit in overall monies coming in.

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