Zee Entertainment Enterprises Ltd (ZEEL) today reported 18.60% decline in its consolidated net profit for the quarter ended March 31 at Rs 160.17 crore due to higher operational costs and reduced advertising revenue.
The company had posted a net profit of Rs 196.78 crore in the corresponding period last year, ZEEL said in a filing to the BSE.
The consolidated total income from operations during the fourth quarter, however, increased by 8.47% to Rs 869.06 crore from Rs 795.41 crore in the year-ago period.
The company's advertising revenue in the fourth quarter of FY12 decreased by 12.11% to Rs 414.97 crore from Rs 472.17 crore in the same period of 2011.
During the period under review, operational costs stood at Rs 424.22 crore compared to Rs 370.94 crore, up 14.36%, the company said.
For the entire 2011-12 fiscal, ZEEL's consolidated net profit went down by 7.50% to Rs 589.16 crore from Rs 636.95 crore in the previous fiscal, it added.
The consolidated total income from operations during FY12 rose by 1.05% to Rs 3,040.56 crore from Rs 3,008.84 crore in FY'11, it said.
The Board of Directors of the company has recommended a dividend of Rs 1.50 per equity share of Re 1 each for 2011-12.
Commenting on the results, Zee Chairman Subhash Chandra said: "Fiscal 2012 has been marked by a sharp slowdown in the economy. This change in pace of growth has had a greater impact on advertising spends during the year, and advertising revenue growth has seen a much sharper slowdown."
During such environment, ZEE continues to build its media assets and create value for the shareholders, he added.
"We have taken a conscious call to increase investments in content and simultaneously develop our distribution capabilities through a collaborative effort, Chandra said.
The shares of the company today closed flat at Rs 123.20 apiece on the BSE.
