Zee Entertainment Q2 profit more than doubles to Rs590.8 crore
New Delhi: Zee Entertainment Enterprises Ltd, which operates channels such as Zee TV and Zee Cinema, said on Tuesday it has more than doubled net profit for the September quarter, benefiting from an increase in advertising revenue and decline in overall expenses.
Net profit rose to Rs590.8 crore from Rs238.4 crore in the year-ago period, as consolidated revenue (including other income) rose 2.6% to Rs1,785.1 crore from Rs1,738.6 crore a year ago. Overall expenditure declined 13.8% to Rs1,147 crore from Rs1,331.2 crore.
Advertisement revenue rose 2.9% to Rs986.7 crore, while that from subscriptions declined 14% to Rs501.4 crore.
“We are satisfied with our performance against the backdrop of tough macro-economic environment during the quarter. Our advertisers were negatively impacted during transition to GST (goods and services tax) which led to a temporary pull-back on their ad spends. Post the decline in the first half of the quarter, the growth recovered strongly and is back on track. Despite the adversity, our domestic ad revenue grew at 5.8% on a comparable basis,” managing director & chief executive officer Punit Goenka said.
“At ZEEL, it has been exciting 25 years during which we significantly increased our viewership and expanded our regional as well as global presence. This was achieved while delivering a strong financial performance. It has been possible because of our ability to evolve our content offerings in line with changing consumer preferences. Another step in this evolution would be the launch of our new digital product, ‘Z5’, in the second half of this financial year. It will offer an unrivalled content catalogue appealing to all demographics and bring unique viewing experience to the consumer,” added Goenka.
The company launched two HD channels—Zee Tamil HD and a premium English movie channel— in this quarter.
Zee’s sports business reported revenues of Rs1.6 crore compared to Rs212.5 crore last year.
“The phase II of sale of sports business comprising of some of the properties in international territories was completed in the month of September. Revenues earned by these properties were recorded in ZEEL’s books till completion of the transaction. As part of the arrangement, the economic risk and reward of these properties were with Sony Pictures. Accordingly, the revenue earned by these properties is passed on to Sony Pictures and is included in costs for the quarter,” the company said.
In addition, at a meeting held on 6 October, 2017, the board had approved acquisition of 100% equity stake in 9X Media Private Limited and INX Music Private Limited in a deal worth Rs160 crore.
In October, Zee Entertainment Enterprises Ltd, acquired Turner International India’s 26% stake in distribution joint venture company Zee Turner, in which ZEEL owns 74% stake.
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