Slowdown tempers Zee's earlier heady growth

With economic slowdown impacting advertising revenue, broadcaster Zee Entertainment Enterprises (ZEEL) has seen a 7.3 per cent dip in net profit to Rs 96.8 crore for the quarter ended March 31, 2009, compared with Rs 104.4 crore in the corresponding quarter of the previous year.

However, the total income rose by 1.44 per cent to Rs 577.6 crore for the quarter, from a corresponding Rs 569.4 cr last year. The numbers include financials of Taj TV Ltd, ETC Networks and Zee Turner Ltd.

Overall, for fiscal 2008-09, ZEEL has posted a net profit after tax of Rs 519.6 cr for the year ended March 31, 2009, a growth of 31 per cent, over the same period a year earlier, when its net profit stood at Rs 416 cr. Total income was Rs 2,332.6 cr for the year ended March 31, whereas it was Rs 1,949.1 cr for the year ended March 31, 2008.

ZEEL’s advertising revenues for the fourth quarter ended March 31 were Rs 228.4 cr, a decrease of 7 per cent as compared to the corresponding quarter last fiscal. “Advertising revenues in the fourth quarter were impacted, largely due to the slowdown in the macro economy. Overall, the company’s advertising revenues registered a 14 per cent growth for fiscal 2009 over fiscal 2008,” the company said in a statement.

Total subscription revenues for the quarter were Rs 234.5 crore, an increase of 13% over the corresponding quarter last fiscal.