Zee News Ltd Revenue UP 45.4%
CONSOLIDATED EBIDTA OF Rs. 299 MILLION, UP 35.8%
EBIDTA MARGIN OF 20.9%
CONSOLIDATED NET PROFIT OF Rs. 151 MILLION, UP 18.4%
Highlights
???? Advertisement revenue was Rs 1.12 billion for the quarter ended December 31, 2008, an
increase of 38.8% as compared to the corresponding period last fiscal.
???? Subscription revenue was Rs 236 million for the quarter ended December 31, 2008, an increase
of 46.4% as compared to the corresponding period last fiscal.
???? EBIDTA was Rs 299 million for the quarter ended December 31, 2008, as against Rs. 220
million during the corresponding period last fiscal. EBIDTA margin was 20.9%
???? Net Profit after Tax was Rs. 151 million for the third quarter ended December 31, 2008, an
increase of 18.4%
???? All channels’ viewership share of ZNL channels in the total C&S Universe grew to 5.47% in Q3
FY09 as compared to 4.18 % in the corresponding period last fiscal.
???? The flagship channel ‘Zee News’ continued to gain market and revenue share, while sticking to
sensible news. Both ‘Zee Marathi’ and ‘Zee Bangla’ maintained leadership in their respective
genres.
???? ‘Zee Business’ recorded sustained improvement in viewership share while 24 Ghanta
maintained its leadership in the genre.
???? Under “new businesses”, ‘Zee Kannada’ and ‘Zee Telugu’ recorded a YoY GRP growth of 90.8%
and 47.4% respectively while ‘Zee 24 Taas’ saw an increase of 148.3%.
???? ‘Zee Tamil’ is now well distributed and progressing as per our plan. In West Bengal, operating
involvement of ZNL team with Akaash Bangla got initiated w.e.f January 1, ’09.
EARNINGS RELEASE FOR THE QUARTER ENDED DEC. 31, 2008
Page 2 of 5
Mumbai, India; January 22, 2009 – Zee News Limited (ZNL) today reported third quarter fiscal ‘09
consolidated revenue of Rs. 1.43 billion, representing 45.4 % growth over the corresponding quarter
last fiscal. The consolidated EBIDTA stood at Rs. 299 million, up by 35.8 %. Profit before tax for the
quarter ended December 31, 2008 was Rs. 244 million while Net Profit was Rs. 151 million.
Subscription revenue continued to deliver YoY growth, a whooping 46% over last year, cashing in on
the extensive DTH proliferation. However, increased prudence in the payment of carriage fees has led
to a temporary slowdown in the subscription revenue from analogue connections in this quarter,
compared to the immediately preceding quarter. The company expects this to be more than
compensated going forward.
The Board of Directors in its meeting held today, has approved and taken on record the un-audited
financial results of Zee News Limited for the quarter ended December 31, 2008.
Commenting on the results, Mr. Subhash Chandra, Chairman said, “We are extremely pleased with our
robust growth despite the financial slowdown. It seems to be a dream run given the current global
economic situation. Our bouquet composition, aggressive and innovative strategy and an ever costconscious
approach to business helped us achieve this feat – something seemingly impossible for most
other media organizations.”
“The company is no longer dependent on two or three key channels. With growing traction in, Zee
Telugu, Zee Business, Zee Kannada and the regional news channels, Zee News Limited is all set to add
additional driver channels going forward. On one hand we are strategically expanding our presence,
while on the other hand, the channels which are not likely to make profit in the near future have been
critically reviewed by the company. The Board has approved the closure of Zee Gujarati w.e.f April 30,
’09. The forthcoming U. P News channel launch will be a key strategic expansion along with other
regional proliferation of our products and services,” he added.
“Zee News Limited is primed to deliver as per the expectations of the investor fraternity and I strongly
believe that its diversified presence and a well laid out expansion strategy – without compromising
current profitability – are going to be value drivers in the time to come,” said Mr. Chandra.
Mr. Laxmi Narain Goel, Managing Director, Zee News Limited, said, “The strong third quarter
performance of the company is not only testimony of our sound business model and practices but also
speaks volumes about the financial discipline followed.”
“Maintaining the uphill trend, the company has recorded a healthy 45.4% increase in top-line of Rs.
1.43 billion. This was led by advertising revenue growth of 38.8% and subscription revenue growth of
46.4%. Consolidated EBIDTA stood at Rs. 299 million, up 35.8%. I am glad that in this era of
perceptible economic slowdown, Zee News Limited has managed to grow and expand both in market
share and revenue,” said Mr. Goel.
EARNINGS RELEASE FOR THE QUARTER ENDED DEC. 31, 2008
Page 3 of 5
Elaborating on the company’s performance, Mr. Barun Das, CEO said, “The ‘existing businesses’
continued to grow and recorded 23% growth in operating revenues while the same for ‘new
businesses’ was 333.3%. While the performance of existing businesses soared high, we consciously
continued with our investment in our leading channels in order to maintain & grow our lead so that we
enjoy higher traction going forward. Viewership experienced an upward spiral with the all channel
viewership share of Zee News Limited channels growing by 31% over the third quarter last fiscal.”
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