Zee Entertainment drops after reporting weak Q3 results

Zee Entertainment Enterprises dropped 2.02% to Rs 407.40 at 14:30 IST on BSE after the company's consolidated net profit fell 10.89% to Rs 275 crore on 12.47% increase in total income to Rs 1624.06 crore in Q3 December 2015 over Q3 December 2014.

The result was announced during trading hours today, 15 January 2016.

Meanwhile, the BSE Sensex was down 38.92 points, or 0.16%, to 24,734.05.

On BSE, so far 2.4 lakh shares were traded in the counter, compared with an average volume of 1.48 lakh shares in the past one quarter. The stock hit a high of Rs 422 and a low of Rs 401.15 so far during the day. The stock hit a 52-week high of Rs 440.30 on 21 October 2015. The stock hit a 52-week low of Rs 299.65 on 15 May 2015.

The fall in net profit in Q3 December 2015 was due to a sharp drop of 63.8% in other income to Rs 29 crore in Q3 December 2015 over Q3 December 2014. Zee Entertainment Enterprises said that advertising revenues rose 26.8% to Rs 941.90 crore in Q3 December 2015 over Q3 December 2014. Subscription revenues rose 17% to Rs 521.80 crore in Q3 December 2015 over Q3 December 2014. EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) rose 21.8% to Rs 430.20 crore in Q3 December 2015 over Q3 December 2014. EBITDA margin stood at 27% in Q3 December 2015.

Zee Entertainment Enterprises also said during market hours today, 15 January 2016 that the board of directors of the company at its meeting held on 15 January 2016 approved in-principle, a proposal for induction of a strategic investor in India Webportal (IWPL), a 51% subsidiary of the company, whereby IWPL shall issue convertible preference shares to the strategic investor, which may result in potential dilution of company's shareholding in the subsidiary below 51%.

The board of directors also approved redemption of 22.27 lakh, 6% Non-Cumulative Redeemable Preference Shares of Re 1 each (unlisted preference shares) issued by the company in pursuance of a scheme of arrangement in September 2014. As per the terms of issue the unlisted preference shares shall be redeemed at par as at the close of 15 January 15, 2016; and entitled to pro-rata dividend at 6% per annum for the year ending 31 March 2016 (FY 2016).

Zee Entertainment Enterprises is one of India's leading television media and entertainment companies. It is amongst the largest producers and aggregators of Hindi programming in the world, with an extensive library housing over 210,000 hours of television content.

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