Zee Media slips into red in Q3 due to impairment loss of investment in DMCL
MUMBAI: Zee Media Corporation has posted a net loss of Rs 181.87 crore for the quarter ended 31st December due to impairment loss of the company’s investment worth Rs 200.43 crore in Diligent Media Corporation Ltd (DMCL). In the corresponding quarter of the previous fiscal, the company posted a net profit of Rs 27.19 crore.
In accordance with Ind-AS 109 “Financial Instruments”, ZMCL has provided impairment loss of Rs 200.43 crore in respect of its investment in DMCL. Earlier, the company had provided for impairment provision of Rs 235.84 crore comprising of Rs 103.35 crore provided during the quarter/year ended 31st March 2019 and Rs 132.49 crore provided during the quarter/half-year ended 30th September 2019.
The company said that its entire investment of Rs 436.27 crore in 436,26,56,265 – 6% Non-Cumulative Non-Convertible Redeemable Preference Shares of Rs 1 each of DMCL is completely provided for.
ZMCL’s operating EBITDA has dropped 12.3% to Rs 50.87 crore as against Rs 57.99 crore. The company’s operating revenue declined 19.7% to Rs 155.9 crore while expenditure narrowed 22.9% to Rs 105 crore.
Advertising revenue was down 18.1% to Rs 143.74 crore. Subscription revenue fell by 25.1% to Rs 9.74 crore. Other sales and services more than halved to Rs 2.43 crore.
The company’s operating cost decreased by 18.5% to Rs 24.05 crore. Marketing, distribution, and business promotion expenses were down 63.2% at Rs 8.09 crore.
ZMCL owns and operates 14 news channels comprising one global, three national and 10 regional channels. It claims to reach more than 293 million viewers.