Zee Entertainment record Q4 net loss at Rs 766 crore

Zee Entertainment Enterprise Ltd (ZEEL) posted a net loss of Rs 765.82 crore for the January-March quarter of the financial year 2019-20. The company had gained a net profit of Rs 292.53 crore in the January-March quarter in the previous year, it said in a BSE filing.

Total income of Zee Entertainment was declined to 4.06 per cent. The total profit was Rs 1,991.74 crore during the January-March quarter as against Rs 2,076.06 crore a year ago.

It made a provision of Rs 113.70 crore as an impairment charge of the recoverable amount of goodwill allocated to the online media business which represents a separate cash-generating unit (CGU), the filing said.

“The excess of carrying value of CGU over the recoverable amount had been accounted as an impairment charge of Rs 113.70 crore in the quarter and year ended March 31, 2020, and disclosed as an exceptional item,” said Zee Entertainment Enterprise Ltd.

During the March 2020 quarter, its operational cost went up by 47.69 per cent to Rs 1,304.62 crore as against Rs 883.32 crore. “Underlying cost increase led by higher movie amortisation, new channels and investments in ZEE5. The reported operating cost includes onetime accelerated amortisation of inventory of Rs 259.8 crore,” added Zee Entertainment Enterprise Ltd.

According to Zee Entertainment Enterprise Ltd, The result also includes a one-time provision of Rs 343.3 crore in the administrative cost for balances related to the ad, subscription and other assets where recovery has become doubtful on account of Covid-19 led uncertainty. There were total expenses of Rs 2,677.77 crore in Q4/FY 2019-20 as against Rs 1,612.60 crore in the corresponding period a year ago.

Revenue from advertisement was reduced 14.66 per cent at Rs 1,038.94 crore during the quarter as against Rs 1,217.49 crore in January-March quarter in the previous year.