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Our Bureau

Ad revenue up, subscription income declines

Mumbai April 21 Zee Entertainment Enterprises Ltd's (ZEEL) has reported a standalone net profit of Rs 59.2 crore for the fourth quarter ended March 31, 2007, against a net loss of Rs 13.2 crore for the corresponding quarter of the last fiscal.

Earnings were lower, at Rs 201.9 crore, against Rs 249.7 crore.

Operating profit for the quarter was recorded at Rs 73.2 crore, against an operating loss of Rs 30.4 crore.

"The standalone results would not be a correct criterion of judging the company's performance as a larger part of our business is in subsidiaries," said Mr Atul Das, Senior Vice-President of Company Finance.

The ZEEL stock had closed at Rs 266.9 on Friday.

On a consolidated basis, profit after tax amounted to Rs 69.9 crore (Rs 67.6 crore) while total revenues were marginally lower, at Rs 384.4 crore (Rs 396.6 crore).

Segmental numbers

For fiscal '07, the company reported a rise of 142 per cent in its standalone net profit, at Rs 167.8 crore (Rs 69.1 crore). Net revenues stood at Rs 857.5 crore (Rs 831.4 crore).

On a consolidated basis, the company's net profit amounted to Rs 240.6 crore (Rs 225.9 crore) while total revenues amounted to Rs 1,441 crore (Rs 1,477 crore).

Segmentally, while advertising revenues increased, to Rs 706 crore (Rs 656 crore), subscription revenue at Rs 660 crore (Rs 717 crore) as well as other sales and services, at Rs 74 crore (Rs 103 crore) declined.

"These numbers are not comparable as last year's numbers include the cable, news and direct consumer business undertakings, which have now been de-merged," said Mr Das.

For a correct picture of ZEEL's performance, the company's proforma numbers of last fiscal could be considered for comparison on a like-to-like basis, Mr Das added.

Growth pattern

As per these figures supplied by the company, ZEEL, along with its subsidiaries, recorded a growth of 33 per cent with a net profit of Rs 69.9 crore in the quarter ended March 31, 2007, up from Rs 52.7 crore for the corresponding period last year. The net revenues have risen by 11 per cent to Rs 3,84.3 crore, from Rs 347.6 crore.

Operating profit grew 112 per cent, to Rs 95.1 crore (Rs 44.9 crore). Mr Subhash Chandra, Chairman, credited the "resilience" of the company's brands for the growth in operating profit despite the disruptions on account of the Cricket World Cup and intense competitive activity.

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