Zee Entertainment Enterprises Ltd., India's largest media and entertainment company, reported a higher stand-alone net profit for the fourth-quarter despite drop in income. On a consolidated basis, the company reported a lower net profit for the quarter.
The Mumbai-based company reported a fourth-quarter stand-alone net profit of Rs.134.53 crore or Re.1.39 per share, higher by 62 percent than the Rs.82.94 crore or Re.0.86 per share in the corresponding quarter a year ago.
Its quarterly net income from operations totaled Rs.569.44 crore, down by eight percent from the Rs.621.25 crore in the corresponding quarter of the preceding year, while other income stood at Rs.56.25 crore compared with Rs.13.09 crore in the year-ago quarter.
For the first 12 months, the company's stand-alone net profit was Rs.489.73 crore compared with Rs.576.41 crore in the corresponding period last year, reflecting a 15 percent decline. Total income from operations, including other income, amounted to Rs.2,332.88 crore, up by five percent from the Rs.2,230.98 crore for the comparable period a year ago.
Zee Entertainment posted a fourth-quarter consolidated net profit, after minority interest and share of profit of associates, of Rs.160.17 crore, lower by 19 percent than the Rs.196.78 crore in the fourth-quarter of 2011.
Total income from operations and other income was Rs.920.05 crore, up by 12 percent than the Rs.823.94 crore in the fourth-quarter of last year.
During the quarter, income from 'Advertising' segment was Rs.414.97 crore, while that from 'Subscription' was Rs.402.18 crore. Income from 'Other Sales and Services' segment totaled Rs.51.91 crore.
For the fiscal year, the company posted a consolidated net profit, after minority interest and share of profits of associates, of Rs.589.16 crore, down by eight percent from the Rs.636.95 crore last year. Total income from operations and other income, totaled Rs.3,178.93 crore from the Rs.3,097.16 crore last year, an increase of three percent.
The company's Board recommended a dividend of 150 percent or Re.1.50 per equity share of Re.1 each for the fiscal year 2012.
Zee Chairman Subhash Chandra said: "Our performance during the quarter reflects the investments that ZEE is making to grow its business and market share. This has been accompanied by a strong improvement in the operating performance of the company during the quarter. The company will stand by its commitment to its viewers of delivering high quality content across genres. Our investments in the sports genre have continued during the quarter."
He added, "FY13 is expected to be a landmark year for the television media industry. The industry is gearing up for a big change with deadline for implementing Digital Addressable System in the four metros approaching on June 30, 2012. Digitization will bring about improvements in addressability and capacity, thereby, improving the quality of service to consumers and creating a better financial model for all players in the value chain."
Speaking about the outlook for the business, Managing Director and Chief Executive Officer Punit Goenka said: "While the competitive intensity remains high in the Indian television industry, we continue to make efforts towards further enhancing our market share. Media Pro, our joint venture for subscription revenues, has started on a good note and we are very confident of a robust performance going forward. The impending digitization will further be able to create value for the business. Also, our content focused approach, combined with better monetization of subscription revenues, will contribute to company delivering steady return in the year ahead."
At the BSE, Zee Entertainment closed Monday's trading at Rs.123.20, unchanged from the previous close.
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