ZEEL posts 98% in profits

Co. earned $38.3 million last quarter

By PATRICK FRATER

HONG KONG -- Indian broadcast group Zee Entertainment Enterprises Limited (ZEEL) Wednesday unveiled a 98% increase in profits. For the quarter to June 30 it made profit of Rupees1.61 billion ($38.3 million.)

Revenues climbed 38% to $128 million, with ad sales powering ahead at 37% to $66 million.

Programming and operating costs climbed 21% to $56.4 million, with start up costs of Zee Next and Zee Entertainment Studios weighing heavily.

Local reports say that ZEEL is planning to invest $200 million in the movie production and distribution sectors through Zee Entertainment Studios and that it is considering private equity or a flotation of the unit on the London Stock Exchange as options for raising further capital. Reports say that, working in six languages - Hindi, Tamil, Telugu, Marathi, Bengali and Gujarati -- it will produce up to ten movies in the first year and increase that thereafter.