Zee Entertainment Enterprises Ltd., India's largest media and entertainment company, reported a higher net profit for the fourth-quarter, both on stand-alone and consolidated basis, on increased incomes.
To commemorate the completion of 20 years of broadcasting business of the company, it has approved bonus for the Redeemable Preference Share holders, besides declaring a dividend for the ordinary share holders.
Stand-alone Results
The Mumbai-based company reported a fourth-quarter stand-alone net profit of Rs.183.72 crore or Re.1.92 per share, higher by 37 percent than the Rs.134.53 crore or Re.1.39 per share in the corresponding quarter a year ago.
Its quarterly net income from operations totaled Rs.686.68 crore, up by 21 percent from the Rs.569.44 crore in the corresponding quarter of the preceding year, while other income stood at Rs.28.97 crore compared with Rs.56.25 crore in the year-ago quarter.
For the first 12 months, the company's stand-alone net profit was Rs.640.69 crore compared with Rs.489.73 crore in the corresponding period last year, reflecting a 31 percent growth. Total income from operations, including other income, amounted to Rs.2,684.85 crore, up by 15 percent from the Rs.2,332.88 crore for the comparable period a year ago.
Consolidated Results
Zee Entertainment posted a fourth-quarter consolidated net profit, after minority interest and share of profit of associates, of Rs.179.60 crore, higher by 12 percent than the Rs.160.17 crore in the fourth-quarter of 2012.
Total income from operations and other income were Rs.1,018.11 crore, higher by 11 percent than the Rs.920.05 crore in the fourth-quarter of last year.
During the quarter, income from 'Advertising' segment was Rs.479.22 crore, while that of 'Subscription' was the highest-ever at Rs.454.55 crore. Income from 'Other Sales and Services' segment totaled Rs.30.52 crore.
For the fiscal year, the company posted a consolidated net profit, after minority interest and share of profits of associates, of Rs.719.55 crore, up by 22 percent from the Rs.589.16 crore last year. Total income from operations and other income, totaled Rs.3,845.66 crore from the Rs.3,178.93 crore last year, an increase of 21 percent.
At the end of March this year, there were an estimated 33 million digital pay TV homes on DTH and an estimated 16 million homes on digital cable, up from the 29 million DTH and four million digital cable homes in March 2012, the company said.
Its Board recommended a dividend of 200 percent or Rs.2.00 per equity share of Re.1 each for the fiscal year 2013.
The Board also approved enhancement of FII investments in the company beyond the current limit of 49 percent up to the maximum sectoral limit allowed under applicable FDI regulations, adding that though advertising growth has been muted for the television industry as a whole, Zee has recorded industry leading growth of 24 percent in FY13.
In addition, as a special reward to shareholders on completion of 20 years of broadcasting business of the company, the Board further approved distribution of around Rs.2,000 crore by way of bonus issue of six percent Redeemable Preference Shares (RPS) in the ratio of 21 RPS of Re.1 each for every equity share of Re.1 each held in the company, through a court approved scheme of arrangement.
Zee Chairman Subhash Chandra said: "FY13 was a defining year for the television media sector in many ways. The biggest transformation was the implementation of Digital Addressable System in the 42 largest cities of India. This year also marked the completion of 20 years of Brand Zee. ….We believe we can continue to return meaningful amount of capital even as we strengthen our balance sheet and invest in the growth of the business. We will continue to pursue growth opportunities, which would enhance long-term shareholder value."
Managing Director & Chief Executive Officer Punit Goenka commented, "The improving economic outlook augurs well for the media and entertainment sector. We are hopeful that a steady growth in ratings will help Zee deliver better performance in the coming quarters. Our content-focused approach combined with better monetization of subscription revenues, especially from digital markets, will contribute to the company delivering steady and sustainable returns in the years ahead."
At the BSE, Zee Entertainment shares are currently trading at Rs.239.95, down Rs.4.95 or 2.02 percent on a volume of around 655,000 shares.
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