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Mumbai: Zee Entertainment Enterprises Ltd on Tuesday said its Jan-March consolidated net profit jumped 49 percent due to a spurt in advertising and subscription revenues, pushing its shares up 10 percent.
The broadcaster posted a consolidated net profit of 1.92 billion rupees compared with Rs 129 crore a year ago.
“FY2011 was a significant year for the television media industry in several ways,” chairman Subhash Chandra said in a statement. “Advertising revenues bounced back at a healthy pace after a slowdown in FY2010, reflecting a buoyant recovery in the economy.”
Advertising revenue shot up 36.4% to Rs 479 crore, while subscription revenue rose 23.7% to Rs 311 crore, helped by strong domestic subscription.
Total revenue rose 23% to Rs 798 crore.
Reacting to the earnings, shares of the company, which the market values at $2.77 billion, jumped as much as 10% to Rs 137.35 in a choppy Mumbai market. At 1.55 p.m., the stock was up 6.3% at Rs 132.50.
“I am happy to report that sports losses were contained to Rs 15.2 crore during the fourth quarter, in line with our forecast earlier. We do expect losses to continue in the sports business for some more time to come,” said chief executive Punit Goenka in a statement.
Zee Entertainment owns channels such as Zee TV, Zee Cinema, Zee Cafe, Zee Khana Khazana and Zing, among others.
Earlier in the day, the company said its board has approved a buyback of up to 25% equity in the company at a price not exceeding Rs 126 a share.