Zee Ent net profit dips by 26%

Hit by a slowdown in its advertising revenue growth, coupled with an increase in the input costs, media and entertainment firm Zee Entertainment Enterprises (ZEEL) has posted a 26 per cent dip in its consolidated net profit to Rs 83.97 crore for the quarter ending December 2008, compared to Rs 113.47 crore for the same quarter, a year ago.

ZEEL, the promoter of Hindi entertainment channel Zee TV and others, has also blamed the strike of television workers in November last year as among the reasons that contributed to the dip in its net profit and operating margins.

Advertising revenues for ZEEL stood at Rs 268.4 crore while its subscription revenues stood at Rs 227.4 crore for the third quarter ended December 2008, an increase of 2 per cent and 17 per cent, respectively, as compared to the corresponding period last financial year, the company said in a statement.

 

The programming and operating cost for ZEEL, that constitutes 62 per cent of the total expense for the group, went up by 5 per cent for the third quarter to Rs 268.4 crore from Rs 254.9 crore in same period, a year ago.