Zee Entertainment Q2 profit rises 28.3% to Rs244 crore
New Delhi: Zee Entertainment Enterprises Ltd, which operates entertainment channels such as Zee TV and Zee Cinema, on Tuesday reported a 28.3% increase in net profit for the September quarter, benefiting from an increase in advertising and subscription revenue.
Net profit rose to Rs.244 crore from Rs.190.8 crore in the year-ago period, as revenue rose 21.7% to Rs.1,695.4 crore from Rs.1,378.6 crore a year ago.
Advertisement revenue rose 15.7% to Rs.959.2 crore, and that from subscriptions increased 14.2% to Rs.583.3 crore.
“ZEE reported well-rounded strong growth in revenues during the first half of fiscal 2017. While we continue to add new channels to our domestic and international broadcasting businesses our new initiatives in movies, music, events and digital are taking shape and have started contributing to growth,” chairman Subhash Chandra said.
The company launched two new channels–Zee One and Zee Mundo in international markets. While in the domestic market ZEEL launched three new channels—Zee Anmol Cinema, a Hindi movie channel for free-to-air audience; Zee Yuva, a youth focused Marathi general entertainment channel; and Zee Cinemalu, a movie channel in Telugu language.
Managing director and chief executive officer Punit Goenka said, “At ZEE we are pleased to deliver yet another quarter of satisfying business and financial performance. Our advertising revenues continue to grow ahead of market on the back of improving viewership share and better monetization of our bouquet. Growth in domestic subscription revenue was aided by catch up revenue in Q2.”
Zee’s sports business reported revenues of Rs.212.5 crore against a cost of Rs.229.3 crore in the second quarter.
Zee Studios, the movie production arm of the company, released Akshay Kumar starrer Rustom, which became one of the highest grossing Hindi films of the year.