Zee Entertainment Enterprises' Margins Take A Hit From Sports Losses In Third Quarter
Zee Entertainment Enterprises reported "slightly better-than-expected results for the quarter ended December," according to Malvania & Agarwal of the Indian BUSINESS STANDARD. The company’s consolidated net profit stood at Rs 213.6 crore ($34.5M), up 10.5% compared to the year-ago period, while sales stood at Rs 1,188 crore, a rise of 26.6% compared to a year earlier. The Ebitda margin, however, fell 335 basis points to 24.46%, owing to losses in the sports segment rising to Rs 104 crore in the December quarter from Rs 8.6 crore a year earlier. This was "primarily due to a packed sports calendar." Growth of 80.7% in sports revenue, which stood at Rs 191 crore, "didn’t result in profits, as operations were hit by a weak rupee and cancellation of T-20 cricket matches from India’s tour of South Africa." Edelweiss Securities Associate Dir Abneesh Roy said, "The India-South Africa series was curtailed and the T-20 matches, which are huge revenue spinners for sports broadcasters, were cancelled. This has affected the sports segment to a big extent" (BUSINESS STANDARD, 1/23).