New Delhi: Zee Entertainment Enterprises Ltd (ZEE), which operates entertainment channels Zee TV and Zee Cinema, reported a more than six-fold increase in fiscal fourth-quarter profit because of a one-time gain on the sale of its sports channel.
Net profit rose to Rs1,514.2 crore for the three months ended 31 March from Rs226.5 crore in the year-ago period, the company said on Wednesday.
The March quarter profit includes a one-time gain of Rs1,223 crore on account of sale of Zee’s sports business to Sony Pictures Networks India.
Zee’s revenue rose to Rs1,528 crore from Rs1,521 crore in the previous year. While advertising revenue was little changed, subscription revenue fell to Rs558 crore from Rs594 crore in the previous year.
“After a couple of quarters of weakness, advertising growth appears to be back on track. The GST (goods and services tax) roll-out could boost advertising spends as a part of potential tax savings might be reinvested. We are confident that with the strong competitive position of our channels in every genre, we will be able to drive subscription business,” said Punit Goenka, managing director and chief executive officer of Zee Entertainment Enterprises.
In September 2016, Sony Pictures Network had acquired sports network TEN Sports from Zee in an all cash deal of $385 million. During the quarter, the company completed the first phase of the transaction, “upon receipt of part consideration of $330 million by the company and/or its subsidiaries. Consequently, Taj Television (India) Pvt. Ltd (which runs Ten Sports), ceased to be subsidiary of the company with effect from 1 March 2017,” the company said in the statement.