Zee Entertainment Enterprises Ltd (ZEEL) today reported 18.60 per cent decline in its consolidated net profit for the quarter ended March 31 at Rs 160.17 crore due to higher operational costs and reduced advertising revenue.
The company had posted a net profit of Rs 196.78 crore in the corresponding period last year,ZEEL said in a filing to the BSE.
The consolidated total income from operations during the fourth quarter,however,increased by 8.47 per cent to Rs 869.06 crore from Rs 795.41 crore in the year-ago period.
The company’s advertising revenue in the fourth quarter of FY12 decreased by 12.11 per cent to Rs 414.97 crore from Rs 472.17 crore in the same period of 2011.
During the period under review,operational costs stood at Rs 424.22 crore compared to Rs 370.94 crore,up 14.36 per cent,the company said.
For the entire 2011-12 fiscal,ZEEL’s consolidated net profit went down by 7.50 per cent to Rs 589.16 crore from Rs 636.95 crore in the previous fiscal,it added.
The consolidated total income from operations during FY’12 rose by 1.05 per cent to Rs 3,040.56 crore from Rs 3,008.84 crore in FY’11,it said.
The Board of Directors of the company has recommended a dividend of Rs 1.50 per equity share of Re 1 each for 2011-12.
Commenting on the results,Zee Chairman Subhash Chandra said: “Fiscal 2012 has been marked by a sharp slowdown in the economy. This change in pace of growth has had a greater impact on advertising spends during the year,and advertising revenue growth has seen a much sharper slowdown.”
During such environment,ZEE continues to build its media assets and create value for the shareholders,he added.
“We have taken a conscious call to increase investments in content and simultaneously develop our distribution capabilities through a collaborative effort,Chandra said.
The shares of the company today closed flat at Rs 123.20 apiece on the BSE.