Zee Entertainment net profit up 51 per cent

MUMBAI: Zee Entertainment Enterprises Limited (ZEEL) posted a net profit of Rs 813 million for the first quarter of 2007-08 ended 30 June, 2007. This is up by 51 per cent over the corresponding period last fiscal.

The company’s consolidated revenue stood at Rs 3,916 million, up 35 per cent growth as compared to Q1 for 2006-07. The consolidated operating profit stood at Rs 1,197 million, up 81 per cent over the corresponding quarter last fiscal.

ZEEL’s ad revenue for the first quarter of this year was Rs 2,044 million, up by 47 per cent compared to the same period last year. On the other hand, subscription revenue went up to Rs 1,681 million for the first quarter ended 30 June, 2007, showing an increase of 27 per cent.
During the first quarter, the average channel share of the flagship channel Zee TV increased to 25 per cent within the general entertainment genre, up 10 cent from the previous quarter.
Zee chairman Subhash Chandra said, “Commendable performance of the flagship channel continues to drive revenue growth and margins. Zee Entertainment finished the first quarter of FY2008 with robust advertising revenue growth of 47 per cent, while operating profit grew strongly by 81 per cent, compared to the corresponding quarter of last fiscal. We are pleased that operating margins have improved to 30.6 per cent compared to the 23 per cent in the first quarter last fiscal.”
Zee TV business head and Zeel director Punit Goenka added, “We continued to gain market share in the general entertainment genre. Zee TV has maintained its ratings across time bands and has average 234 gross rating points (GRPs) during the quarter, and an average channel share of 25 per cent within the general entertainment category, up from 23 per cent during the previous quarter. During this quarter, Zee TV has come closest ever to the genre leader, in the last seven years. Zee TV has on an average approximately 20 shows in the Top 50 and 30 shows in the Top 100 across the general entertainment category.”
“Zee Cinema also undertook many new programming and marketing initiatives to enhance viewer experience. This quarter, we also showcased our big event Zee Cine Awards. During the quarter, Zee Cinema achieved a channel share of 31 per cent. Zee Café continued its lead over Star World in all day ratings as well as prime time ratings across five metros. Zee Café commissioned two new shows – Showbiz India Extreme and Top 10 countdown, which lists the best and worst from various categories in fashion, lifestyle, Bollywood, music and luxury. Zee Studio introduced a unique initiative on world cinema, which included all time great titles including Finally Sunday by Truffaut, Double Life of Veronique by Kieslowski and Twin Peaks by David Lynch. The channel premiered over 40 movies during the quarter,”  Goenka added.