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ZEEL declines on reporting Q4 net loss of Rs 766 cr

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Zee Entertainment Enterprises (ZEEL) slipped 2.87% to Rs 147.30 on recording a consolidated net loss of Rs 765.82 crore in Q4 March 2020 compared with net profit of Rs 292.53 crore in Q4 March 2019.

Consolidated net sales fell 3.4% to Rs 1,951.08 crore in Q4 March 2020 compared with Rs 2,019.27 crore in Q4 March 2019. Pre-tax loss was at Rs 803.03 crore in Q4 March 2020 as against Rs 441.91 crore in Q4 March 2019. Current tax dropped 53.4% to Rs 70.65 crore in Q4 March 2020 as against Rs 151.58 crore paid in Q4 March 2019. The result was released on Saturday, 25 July 2020.

ZEEL registered a 41% growth in domestic business, driven by implementation of NTO and growth in ZEE5's subscription revenues. Poor macroeconomic environment, conversion of two FTA channels into pay in March 2019, and market share loss in certain markets drove the decline. Lockdown in March further impacted revenues. The advertising revenue stood at Rs 56 crore, subscription revenue at Rs 80.70 crore and other sales & services at Rs 63.30 crore during the quarter. Underlying cost increase was led by higher movie amortisation, new channels and investments in ZEES. The reported operating cost includes one-time accelerated amortisation of inventory of Rs 259.80 crore.

Zee Entertainment Enterprises' (ZEEL) personnel cost declined 20.5% Y-o-Y (year-on-year) in Q4 March 2020 due to reversal of provisions for retiral benefit as per actuarial estimates. The company includes a one-time provision of Rs 343.30 crore for balances related to ad, subscription and other assets where recovery has become doubtful on account of COVID-19 led uncertainty.

Consolidated EBITDA for the quarter stood at Rs -283.90 crore as against Rs 568.30 crore in Q4 March 2019. During the year FY20, the firm launched 4 regional TV channels, i.e. Zee Punjabi, Zee Biskope, Zee Thirai and Zee Picchar.

Total liability, including current liability, stands at Rs 595 crore. The reduction in outstanding preference share liability is due to partial redemption during the year and reduction in fair value of preference shares.

Meanwhile, ZEEL entered into a share purchase agreement with Mantena Aviation LLP and its wholly-owned arm Fly-By-Wire International for transfer of equity shares of the subsidiary in two tranches for Rs 27 crore.

ZEEL is a media and entertainment company engaged in providing broadcasting services.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 27 2020. 12:18 IST