ZEE drops after reporting muted growth in Q4 PAT

Zee Entertainment Enterprises declined 0.42% to Rs 316.95 at 15:25 IST on BSE after consolidated net profit rose 6.06% to Rs 230.77 crore on 19.51% rise in total income to Rs 1403.47 crore in Q4 March 2015 over Q4 March 2014.

The company announced results during market hours today, 21 May 2015.

Meanwhile, the S&P BSE Sensex was down 23.82 points or 0.08% at 27,814.87.

On BSE, so far 8.77 lakh shares were traded in the counter as against average daily volume of 3.91 lakh shares in the past one quarter.

The stock hit a high of Rs 323.35 and a low of Rs 312.20 so far during the day. The stock had hit a 52-week high of Rs 401.60 on 25 November 2014. The stock had hit a 52-week low of Rs 261.10 on 16 June 2014.

The stock had underperformed the market over the past one month till 20 May 2015, falling 3.09% compared with Sensex's 0.18% fall. The scrip had also underperformed the market in past one quarter, sliding 11.05% as against Sensex's 4.77% fall.

The large-cap firm has equity capital of Rs 96.04 crore. Face value per share is Re 1.

Zee's non-operational income jumped 263.9% to Rs 56.40 crore in Q4 March 2015 over Q4 March 2014. Zee Entertainment Enterprises' advertising revenues rose 15% to Rs 669.70 crore in Q4 March 2015 over Q4 March 2014. Subscription revenues were Rs 510.80 crore in Q4 March 2015. Domestic subscription revenues stood at Rs 417.50 crore in Q4 March 2015. International subscription revenues were Rs 93.30 crore in Q4 March 2015. The EBITDA (earnings before interest, taxes, depreciation and amortization) margin for the quarter stood at 20.1% and the net profit margin was 17.2%.

Operating cost rose 13.9% to Rs 620.10 crore in Q4 March 2015 over Q4 March 2014. Employee cost has gone up by 11% in Q4 March 2015 over Q4 March 2014. Advertisement and Publicity expenses jumped 122.9% to Rs 132.50 crore in Q4 March 2015 over Q4 March 2014. This increase was mainly on account of launch of new Hindi GEC &tv. Total costs incurred by the company rose 27% to Rs 1076.30 crore in Q4 March 2015 over Q4 March 2014.

The board of directors of the company at the meeting held today, 21 May 2015, have approved payment of dividend of Rs 2.25 per equity share for the year ended 31 March 2015 (FY 2015).

At the board meeting held today, 21 May 2015, the board of directors have approved transfer of Ditto TV business division to its wholly owned subsidiary under a Business Transfer Agreement on a Net Asset Value (NAV) based valuation effective 1 June 2015. The said subsidiary shall handle, and be responsible for, besides Ditto TV, digital properties (websites, apps etc.) of the Group and monetization of digital revenues across platforms / geographies.

Zee Entertainment Enterprises is one of India's leading television media and entertainment companies.

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