Zee News Limited reports 4Q revenues of Rs 690 million, up 47%

Zee News Limited reported Q4 revenues of Rs.690 million, up 47%. The full year revenue for 2007 is at Rs.2356 million, up 41.5%. The company has reported 4th Quarter Operating Profit of Rs.8.5 million as against a loss of Rs.44 million for the corresponding quarter last fiscal. The overall fourth quarter net profit is at Rs.13.1 million.

NOIDA, India; April 20, 2007 - Zee News Limited (ZNL) today reported standalone fourth quarter revenues of Rs. 690.3 million, representing a 47% growth as compared to the pro-forma numbers for the corresponding quarter last fiscal. The operating profit for the quarter stood at Rs. 8.5 million, after expensing of initial investments in new businesses, amounting to Rs 154 million. The corresponding quarter last fiscal, as per proforma numbers, showed a loss of Rs.44 million. Profit before tax for the quarter ended March 31, 2007 was Rs 21.2 million while Net Profit was Rs 13.1 million. Consolidated operating revenues for 4Q FY2007 stood at Rs.710.6 million and consolidated operating loss was Rs 9.2 million.

The Board of Directors in its meeting held today, has taken on record the unaudited financial results of Zee News Limited for the quarter ended March 31, 2007. Mr. Subhash Chandra, Chairman, stated, "Zee News Limited has shown robust advertising and subscription growths of 37% and 45% respectively during the quarter While the existing businesses of Zee News Limited have sustained the growth momentum, the new businesses are also showing encouraging viewership trends. This should stand us in good stead for the future. Digitalization should also enable our channels to garner good subscription revenues in future."

Mr. Laxmi Narain Goel, Managing Director, Zee News Limited commented, "It is a very encouraging sign that the combined share of all Zee News channels has shown a healthy growth in the fourth quarter even compared to the previous quarter of the year. Each one of the channels has increased or held on to share in a competitive market. It is a sign of increasing viewer acceptance of our content. With agile strategies and cost control platforms in place, we will continue to reinforce our competitive edge & deliver more value to viewers and share holders."

Elaborating on the performance, Mr. Harish Doraiswamy, CEO said, "The fourth quarter has seen Zee Marathi strengthening its grip on the #1 position in its genre and Zee Bangla making a strong challenge for the #1 slot and in fact finishing numero uno in several weeks. Zee News has also closed the gap with its next biggest competitor. The relatively new Zee Telugu, Zee Kannada and 24 Ghanta have all strengthened their position in the market. We are pleased to report that excluding new business losses, our operating margins have improved from 18% last year to 30% this year."

The stock closed the day at Rs.40.55, up by Re.0.75 or 1.88%. The stock hit an intraday high of Rs.41.90 and low of Rs.40. The total traded quantity was 1061007 shares at an average price of Rs.41.12 resulting in a turnover of Rs.436.29 Lakhs.

Source : Equity Bulls

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