Mumbai, Oct. 20
ZEE Telefilms Ltd has reported a 38.4 per cent drop in its net profit for its consolidated operations at Rs 42.52 crore for the September 2005 quarter against Rs 69.11 crore in the year-ago period.
The company said that its investments done with an eye on growth impacted financial performance.
"The immediate impact is lowering of operating profits, which we hope to recover in successive quarters through increasing revenues and progressive reduction in costs," a company release said.
Total income increased to Rs 350.2 crore during the quarter from Rs 318.29 crore in the year-ago period.
"The company has identified cable distribution as a thrust area for the next financial year and is gearing up for a major push in that area. We have large and well-distributed cable assets that must be leveraged using new technology platforms and positioned for much higher value realisation. A series of measures have been identified and plans are being chalked out," a press release said quoting Mr Subhash Chandra, Chairman and Managing Director, Zee Telefilms.
Consolidated operating profits of continuing businesses were Rs 91.2 crore, down 11.6 per cent from the year-ago period due to investments in new businesses.
The company has revamped its sales network and improved efficiencies in the sales process, the release said quoting Mr Pradeep Guha, CEO.
The company's advertising revenues increased to Rs 147.7 crore, higher by 12.1 per cent over the year-ago quarter.
Subscription revenues at Rs 174.5 crore grew by 4.2 per cent. Domestic pay revenues stood at Rs 77.6 crore.
Operating profit has recorded a decline of 43.2 per cent to Rs 58.5 crore.
This quarter has seen investments amounting to Rs 32.7 crore in programming, marketing and distribution, which will yield benefit in the coming months, but have been expensed fully.
Shares of Zee Telefilms moved down to Rs 155.85 on BSE from the previous close of Rs 163.65.