Zee Entertainment Enterprises (ZEEL) Q4 97/98 earnings summary

Executive summary

• FY1997-98 consolidated operating income rose 26% YoY to Rs 1,734 million; post-tax profit rose 26% to Rs 437 million.

• Growth reflected higher advertising bookings, programme and film-rights sales, and exports; the ASSL amalgamation consolidated advertising sales with the broadcasting business.

• The network expanded news, international distribution and cable operations while emphasizing profitable growth and reinvestment in content and media assets.

Financial highlights

• Consolidated operating profit was Rs 590 million, PBIDT Rs 665 million, PBT Rs 586 million and PAT Rs 437 million in FY1997-98.

• Advertisement bookings increased 40% to Rs 2,967 million; related commission income rose 40% to Rs 427 million.

• Television programme and film-rights sales reached Rs 1,157 million versus Rs 853 million; export turnover rose 25% to Rs 1,052 million.

• EPS increased 25.4% to Rs 23.4; the interim equity dividend rate rose to 55%, with no final dividend recommended to retain residual profit in the business.

Outlook and guidance

• Provisional H1 FY1998-99 operating income was Rs 1,026 million, up 41%; operating profit rose 46% to Rs 392 million and PAT increased 31% to Rs 294 million.

• Higher programme production and commissioning were planned in response to strong ratings; exports were expected to benefit from demand across international ethnic TV markets.

• Priorities included reinvestment in software and media assets, content production, marketing and distribution; technology-led delivery could create further opportunities.