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State assembly elections pump up Zee Media’s Q4 ad revenue

MUMBAI: News broadcaster Zee Media Corporation Ltd (ZMCL) has posted a 27.3% growth in ad revenue for the fiscal fourth quarter, thanks to the state assembly elections despite demonetisation wrecking the overall ad market in the last two quarters of FY17.

During the quarter ended 31 March 2017, assembly elections were held in Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur. Uttar Pradesh was the highest-stake battleground, with the Bharatiya Janata Party (BJP) pulling its might to win the election. The party had appeared as the top advertiser in several weeks, as per BARC India.

Ad revenue during the quarter grew to Rs 140.37 crore from Rs 110.25 crore a year ago.

Subscription revenue fell by 27.2% to Rs 11.53 crore compared to Rs 15.84 crore in the year-ago period. Other sales and services declined 20% to Rs 8.05 crore.

Revenue streams Zee media Q4 fy17
Zee Media, which has interests in TV news and print, saw its Q4 revenue from operations expand 17.5% to Rs 159.96 crore.

Net profit, however, tanked 71.2% to Rs 5.36 crore due to a sharp increase in expenditure, which increased 31.5% to Rs 133.6 crore.

Operating profit (EBITDA) in Q4 fell 23.8% to Rs 26.36 crore.

Marketing, distribution and business promotion saw a massive 190.7% jump at Rs 20.84 crore. This was due to the company’s English news channel WION (World is One News), which saw its commercial launch in December.

Expenditure Zee media Q4 fy17
Full-fiscal performance

For the full fiscal period, the company’s net loss widened to Rs 16.06 crore compared to Rs 4.54 crore a year ago.

Operating profit dropped 13.2% to Rs 68.38 crore in FY17.

Operating revenue saw a flat growth of 1.3% to Rs 550.28 crore. Expenditure increased 3.8% to Rs 481.9 crore.

Ad revenue increased 13.5% to Rs 455.38 crore despite demonetisation taking a heavy toll on media companies.

Subscription revenue decreased 43.8% to Rs 57.53 crore.

Contrary to Q4, the full-fiscal marketing, distribution and business promotion fell 15.1% to Rs 67.19 crore.

consolidated statement of operations Zee media Q4 fy17
TV segment performance

ZMCL’s profit before tax and interest in the TV news segment stood at Rs 33.06 crore in the fiscal fourth quarter, marking an 11% increase over the corresponding quarter of the previous year’s Rs 29.85 crore.

Revenue from the TV segment increased 24% to Rs 134.97 crore.

For the full fiscal period, profit before tax and interest in the TV news segment grew 35% over the earlier year to Rs 73.12 crore.

Revenue grew by a meagre 3.52% to Rs 449.8 crore in FY17.

Print segment performance

In the fiscal fourth quarter, loss before tax and interest from the print segment comprising English daily ‘dna’ narrowed by 35% to Rs 10.13 crore.

Revenue from the print segment in the fiscal fourth quarter declined 5.54% to Rs 25.39 crore.

consolidated statement information Zee media Q4 fy17

For the full fiscal, the print segment’s loss before tax and interest widened more than three times to Rs 35.27 crore even as revenue contracted 7.88% to Rs 111.52 crore.