Zee Telefilms group has reported a 27.2 per cent rise in consolidated net profit at Rs 90.19 crore (Rs 901.9 million) for the third quarter ended December 31, 2003, compared to Rs 70.88 crore (Rs 708.8 million) posted in the same period of the previous fiscal.

Total consolidated revenue in the period under review also increased to Rs 374.57 crore (Rs 3,745.7 million) as against Rs 307.50 crore (Rs 3,075 million) in Q3 of last year, Zee said in a release in Mumbai on Tuesday.

On a standalone basis, Zee Telefilms has recorded a net profit of Rs 36.75 crore (Rs 367.5 million) [Rs 22.19 crore (Rs 221.9 million) in Q3 of last year], while total income grew to Rs 179.2 crore (Rs 1,792 million) [Rs 141.13 crore (Rs 1,411.3 million)].

For the nine months, the consolidated net profit rose to Rs 222.57 crore (Rs 2,225.7 million) [Rs 173.1 crore (Rs 1,731 million)].

The growth was driven by higher pay revenues from domestic and international markets, and a strong recovery in advertising revenues from the previous quarter.

Zee Tele chairman and managing director Subhash Chandra said the third quarter witnessed recovery in advertising business, growing 7.7 per cent from Rs 171 crore (Rs 1,710 million) in 3Q FY03 to Rs 184.2 crore (Rs 1,842 million).

"This is in line with our expectations. Subscription based businesses also continued to grow, despite uncertainties on CAS," he added.

Domestic pay revenues have shown a growth of 42.5 per cent at Rs 53.9 crore (Rs 539 million) and paid connectivity of Zee bouquet stood at 4.6 million homes.

The consolidated figures include the performance of ETC Networks Ltd and Padmalaya Telefilms Ltd.

Zee said business environment has started to show promise for advertising revenues, which is dependent on macro economic factors and business confidence of the major advertiser groups.

The company remains confident of continued expansion in subscription revenues as well and the uplinking of Zee Cinema and Zee TV from India would allow the entity to tap the lucrative non-exporter advertising market.

ASC Enterprises Ltd has soft-launched the Direct to Home services effective October 2, 2003. Zee's television channels are being marketed as part of the DTH bouquet.

A major restructuring of international operations was initiated with the aim of garnering substantial tax efficiencies and reduction in operating costs. This would be completed in the fourth quarter and would deliver full benefits in the next fiscal year.