Zee Telefilms Q3 net jumps 40%

The company’s board, which met in Mumbai on Wednesday to take on record the unaudited financial statements of the company, decided not to proceed with the negotiations "as the true intrinsic value of Zee Telefilms was not reflected in the valuation."

At the Bombay Stock Exchange, the Zee Telefilms scrip closed at Rs 658.25 after recording an intra-day high of Rs 713.50.

In order to widen its viewership base, Zee Telefilms has decided to enter the broadcasting business and has lined up investments worth Rs 110 crore for launching eight new channels, six of which will be regional. Out of the proposed investment, Rs 40 crore will come from internal accruals, while the balance will be raised through debt, Bakshi said.

"These pay channels, to be transmitted digitally, will be uplinked from India and is expected to bring in substantial advertising and subscription revenues," the company said.

Income from operations, during April-December 1998, shot up by 32.6 per cent to Rs 164.6 crore, "reflecting top line growth in all consolidated business segments, increased exports of original programmes and better re-exploitation of the software library to other parts of the world."

Despite the general economic slowdown, Zee Telefilms has booked advertisements totalling Rs 263 crore during the first nine months of the current fiscal, registering a 21.3 per cent growth over the corresponding period last year.

The operating profit (before interest, depreciation and tax) increased by 36.1 per cent during April-December to Rs 65.6 crore, while profit before tax was higher by 35.4 per cent to Rs 57.8 crore. The company’s earnings per share (annualised), as a result, shot up by 33.5 per cent to Rs 31.3.