Zee Entertainment Enterprises (ZEEL) Q4 96/97 earnings summary

Executive summary

• FY1996-97 consolidated revenue was Rs. 14,382 lakh and PAT Rs. 3,483 lakh, versus Rs. 12,483 lakh and Rs. 3,011 lakh in FY1995-96.

• Growth was supported by higher advertising bookings, exports and channel reach, alongside a strategy to consolidate operations and extend programming across more time slots.

Financial highlights

• Standalone sales and services were Rs. 8,926 lakh versus Rs. 8,818 lakh; total income was Rs. 9,946 lakh versus Rs. 8,912 lakh.

• Standalone operating profit (PBIDT) rose to Rs. 3,770 lakh from Rs. 2,534 lakh; PBT was Rs. 3,327 lakh versus Rs. 2,405 lakh.

• Standalone PAT was Rs. 2,882 lakh versus Rs. 2,303 lakh; the accounts also report Rs. 10 lakh of prior-period adjustments, producing adjusted PAT of Rs. 2,892 lakh.

• Programme exports were Rs. 8,475 lakh versus Rs. 8,657 lakh; net foreign exchange earnings were Rs. 8,322 lakh.

• Recommended dividend was Rs. 4.50 per equity share, a 45% rate, absorbing Rs. 840 lakh; corporate dividend tax was Rs. 84 lakh.

Outlook and guidance

• Round-the-clock broadcasting and an expanded programming schedule were intended to support higher advertising sales, exports and programme development.

• Export sales to Asia Today Limited were expected to earn a 15% markup, versus 10% in FY1996-97; programme re-runs and re-sales were viewed as a source of income with little incremental expense.

• Surplus cash was earmarked for programme and film assets, with remaining profits intended for dividends and reserves; management cited no further working-capital need.