Zee clocks in Rs 13,637 mn as revenues in Q3 FY2015

The consolidated operating profit (EBITDA) for the quarter stood at Rs 3,533 million, recording a growth of 21.5 per cent over the corresponding period of the previous fiscal

BestMediaInfo Bureau | Mumbai | January 22, 2015

Zee Entertainment Enterprises Limited (ZEEL) reported its third quarter fiscal 2015 consolidated revenue at Rs 13,637 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 3,533 million, recording a growth of 21.5 per cent over the corresponding period of the previous fiscal. PAT for the quarter was Rs 3,065 million. The EBITDA margin for the quarter stood at 25.9 per cent and Profit After Tax (PAT) margin at 22.5 per cent.

Advertising revenues for the quarter were Rs 7,426 million, recording a growth of 8.5% over Q3 FY14, while subscription revenues stood at Rs 4,461 million for the quarter ended December 31, 2014.

The Board of Directors in its meeting held today, has taken on record the unaudited consolidated financial results of ZEE and its subsidiaries for the quarter ended December 31, 2014.

Subhash Chandra

Commenting on the results of the company, Subhash Chandra, Chairman, ZEE, stated, “Our quarterly performance reflects the investments that ZEE is making to grow its business and market share. The viewership market share has been strong, which has helped us to continue to grow ahead of the market. We will continue to pursue growth opportunities, which would enhance long term shareholder value. We have a strong balance sheet and we are confident that we would benefit from the growth opportunities ahead of us.”

Talking about the state of economy in India, Chandra added, “The overall economic sentiment in India continues to remain positive post the formation of the new central government. GDP growth rate for the first half of the fiscal has been a healthy 5.5%. The decline in oil prices globally should help in easing pressure on Indian economy in the form of reduced fiscal deficit and lower inflation. The recent rate cut by RBI is indicative of good times to come. The business sentiment has been improving over the past few months. We are hopeful that this improved economic environment is going to lead to sustained growth in the coming years. Media industry would also benefit from the improvement in economic environment. TV ad spends are likely to further improve in the forthcoming quarters.”

Punit Goenka

“Television industry had a good quarter as far as ad spends are concerned,” pointed out Punit Goenka, Managing Director and Chief Executive Officer, ZEEL. “The festive season saw robust growth, which moderated slightly post the festive period. We had a good quarterly performance, reflecting the industry wide trend. On the domestic subscription front, we grew in low double digits during the quarter. On a sustained basis, we are growing in the high single digits on domestic subscription revenues. Implementation of digitization in the remaining parts of the country will push the growth momentum further. As a result of our consistent performance, we continue to operate at a healthy operating margin,” he explained.

Speaking about the outlook for the business, Goenka continued, “The quarter saw a lot of activity on the subscription front. Broadcasters have started testing a-la-carte pricing model in the market which will test the true monetization potential of the content. We are hopeful that this trend will pick up going forward, and will result in consumers actually paying for the content that they want. This trend is also expected to have positive ramifications on the industry ARPU. On the business fundamentals, I believe that creation and acquisition of excellent quality content remains core to our business and we continue to channelize investments to strengthen this core. We continue to explore growth opportunities in our core and allied businesses.”

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