Zee records 34.7% growth in ad revenues in Q2 FY16 at Rs 843.31 cr

Zee's Q2 FY16 net profit grew 8.5 per cent YoY to Rs 246.3 crore, while subscription revenues were up 12.9 per cent at Rs 479.14 crore

BestMediaInfo Bureau | Mumbai | October 15, 2015

Zee Entertainment Enterprises has reported profit after tax of Rs 246.3 crore for the second quarter ended September 30, 2015, a growth of 8.5 per cent YoY over Rs 227 crore net profit in the corresponding quarter last fiscal.

Profit after tax and minority interest for the half year ended September 30, 2015 stood at Rs 491.16 crore, up from the Rs 438.12 crore in the same period last fiscal.

Operating profit (EBITDA) for Q2 FY16 stood at Rs 354.6 crore, while the EBITDA margin was reported at 25.6 per cent.

The total operating income for Q2 FY16 was pegged at Rs 1384.9 crore, up by 24 per cent YoY. The operating income for Q2 FY15 stood at Rs 1117.8 crore.

Operating incomes for the half year ended September 30, 2015 was Rs 2724.76 crore, up from Rs 2172.8 crore posted in the corresponding period last fiscal.

Advertising revenues recorded a growth of 34.7 per cent, from Rs 625.94 crore in Q2 FY15 to Rs 843.31 crore in Q2 FY16.

The advertisement revenue for the half year ended was Rs 1623.24 crore, up from Rs 1,248 crore in the same period last fiscal.

Subscription revenues for Q2 FY16 stood at Rs 479.14 crore, recording a growth of 12.9 per cent over Q2 FY15. During the quarter, domestic subscription revenues stood at Rs 375.2 crore, while international subscription revenues stood at Rs 103.9 crore.

The subscription revenues for the half year ended September 30, 2015 were Rs 941.67 as against Rs 836.58 crore in the same period last year.

Zee's international business continues to perform strongly, driven by global demand for its products. Zee intends to continue to grow this business and ensure timely and appropriate investments to capitalise on this opportunity. For the quarter ended September 30, 2015, the international business reported advertisement revenues of Rs 7.35 crore, while subscription revenues stood at Rs 10.30 crore. Total revenues were pegged at Rs 20.22 crore.

The sports business revenues in Q2 FY16 stood at Rs 127.8 crore, while costs incurred in this quarter were Rs 1,25.6 crore.

Subhash Chandra

Commenting on Zee's results, Dr Subhash Chandra, Chairman, Essel Group and Zee, said, “Zee has seen an impressive performance during the second quarter. The improvement in advertisement industry and improved performance of our network has helped us grow ahead of the market. We continue to see the positive results of our investments. We will endeavour to continue on this track going forward and pursue new opportunities that will yield long term growth. Our effort is to entertain audience across the world.”

Punit Goenka

Punit Goenka, Managing Director & Chief Executive Officer, Zee, said, “We are quite pleased with our quarterly performance and it continues to remain on track. We have grown as a network on the back of superior programming on our new and existing products. The improvement in the overall advertisement market has further aided our strong growth. The domestic subscription market has also seen steady growth.”

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