Zee Entertainment’s profit up 8.6% at Rs250.8 crore
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New Delhi: Zee Entertainment Enterprises Ltd (ZEEL), which operates entertainment channels such as Zee TV and Zee Cinema, on Tuesday reported an 8.6% increase in net profit for the December quarter.
The company’s quarterly net profit rose to Rs250.8 crore from Rs230.8 crore in the year-ago period. Revenue rose 3.38% to Rs1,639.1 crore from Rs1,585.4 crore a year ago, while the subscriptions increased 13.7% to Rs593.5 crore.
Advertising revenue rose 3.4% to Rs955.45 crore. “Despite the impact of demonetisation, we have delivered growth in advertising revenues and growth in subscription revenues remained strong. We believe the adverse impact of demonetisation is transient and with a strong portfolio of national and regional channels we are confident of delivering sustainable growth,” said Subhash Chandra, chairman, ZEEL.
During the quarter, ZEEL acquired the general entertainment TV business of Reliance Broadcast Network Ltd (RBNL), part of the Anil Ambani group, which includes two channels—Big Magic and Big Ganga. Big Magic is a comedy channel catering to Hindi-speaking markets while Big Ganga is a Bhojpuri entertainment channel catering to people in Bihar, Jharkhand and eastern Uttar Pradesh.
“Acquisition of broadcasting business of RBNL is in line with our strategy to expand our offering in key genres and focus on regional space. We are confident that these two channels will benefit immensely from the strength of our network,” said Punit Goenka, managing director & chief executive officer at ZEEL, in a statement.