Zee Entertainment Puts Up A Good Show In Q4

Zee Entertainment Enterprises has announced a decent set of numbers for the recently concluded Q4FY13. On a YoY basis, its topline came in at Rs 964.29 crore, growing by 10.96% from that of Rs 869.06 crore for Q4FY12. There was also a significant increase in the company’s EBITDA, which witnessed a gain of 51% on a YoY basis to stand at Rs 242.26 crore. What is noteworthy here is that the EBITDA margins have expanded by a whopping 1200 basis points to stand at 50.55% for Q4FY13. Its bottomline has touched Rs 180.35 crore for Q4FY13, growing by 10.66% on a YoY basis from that of Rs 163 crore for Q4FY12.

The company’s topline has been divided into three parts, viz. Advertising Revenue, Subscription Revenues and Other Sales and Services. Apart from Other Sales and Service, the other two segments have witnessed growth on a yearly basis. Advertising Revenue and Subscription Revenue have grown by 15.48% and 13.02% respectively YoY. In fact, the income under the Subscription segment is the highest ever for the company in a quarter.

As a special reward to shareholders on completion of 20 years of the company’s broadcasting business, the board has considered and approved distribution of about Rs 2000 crore by way of a bonus issue of 6% Redeemable Preference Shares (RPS). Following this decision, the company will issue 21 RPS of Re 1 each for every equity share of Re 1 each. It has also declared a dividend of Rs 2 per share, taking its dividend yield to 0.83%.