ZMCL slips into red in Q2 due to additional impairment loss of Rs 132.4 cr
MUMBAI: News broadcaster Zee Media Corporation Ltd (ZMCL) has slipped into a loss in the second quarter due to additional impairment loss of Rs 132.4 crore on account of its investment in Diligent Media Corporation Ltd (DMCL), the publisher of now-defunct print daily DNA.
The company had posted a net profit of Rs 17.24 crore in the same period last year.
ZMCL revealed that its investment of Rs 436.27 crore in 436,26,56,265 or 6% Non-Cumulative Non-Convertible Redeemable Preference Shares of Rs 1 each of DMCL redeemable at par on 1st November 2036 was tested for impairment as at 30 September 2019 in accordance with Ind AS 109 “Financial Instruments”.
It further stated that based on the fair valuation report issued by an independent registered valuer, the company has recognised an additional impairment loss of Rs 132.49 crore during the quarter/half year ended 30 September 2019.
The management believes that the total impairment provision of Rs 235.84 crore including impairment loss of Rs 103.35 crore provided during the quarter/year ended 31st March 2019 based on the independent valuation report, is adequate as at 30 September 2019.
The company’s operating EBITDA declined 9.4% to Rs 37 crore as against Rs 40.8 crore in the previous fiscal. Operating revenue was down 18.8% at Rs 137 crore compared to Rs 168.6 crore. Expenditure declined 21.7% to Rs 100 crore from Rs 127.7 crore.
Ad revenue for the quarter witnessed a 16.2% dip at Rs 125.2 crore. Subscription revenue fell by 33.9% to Rs 8.67 crore. Other sales and services dropped 48.7% to Rs 3.14 crore.
ZMCL owns and operates 14 news channels comprising 1 Global, 3 National and 10 Regional channels. These channels have a combined reach of more than 323 million viewers.
During the quarter, the network expanded its footprints into Southern India through the launch of Zee Hindustan in Tamil and Telugu languages. This is intended to make the network’s content accessible to wider audience.
WION entered into a mutual partnership with Russian media outlet and information agency, Sputnik, on the sidelines of Eastern Economic Forum and Prime Minister Narendra Modi’s visit to Russia.
Through the partnership, the two networks aim to amplify the digital and broadcast content of the two nations with technologically enhanced communication. The MoU will also help facilitate coordination and exchange of information and ideas with various communities of the two countries.