ZEE reports higher profit in Q3 FY16

The consolidated operating profit for the quarter stood at Rs 4,302 mn. PAT for the quarter was Rs 2,744 mn. Advertising revenues were Rs 9,419 mn, recording a growth of 26.8%

BestMediaInfo Bureau | Delhi | January 18, 2016

Zee Entertainment Enterprises Limited (ZEE) has reported third quarter fiscal 2016 consolidated revenue of Rs 15,951 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 4,302 million. PAT for the quarter was Rs 2,744 million. The EBITDA margin stood at 27% and the PAT margin at 17.2%.

Advertising revenues for the quarter were Rs 9,419 million, recording a growth of 26.8% over Q3 FY15. During the quarter, domestic advertising revenues stood at Rs 8,607 million while international advertising revenues stood at Rs 812 million.

Subscription revenues were Rs 5,218 million for the quarter, recording a growth of 17% over Q3 FY15. Domestic subscription revenues stood at Rs 4,188 million while international subscription revenues stood at Rs 1,030 million.

Consolidated operating revenues for the quarter stood at Rs 15,951 million, recording a growth of 17% as compared to the corresponding quarter last fiscal.

Subhash Chandra

Dr Subhash Chandra, Chairman, ZEE, stated, “With its steadily improving economic scenario India has outperformed major emerging economies globally. India's domestic growth momentum continues to be healthy. New initiatives being planned by the government on both investment and policy front are likely to fuel economic growth in the coming quarters. Media industry is also expected to benefit in this improved economic scenario through higher advertisement and subscription revenues.”

Commenting on the results Dr Chandra added, “ZEE saw an impressive performance in the third quarter. We grew ahead of the market through improved performance of our existing channels as well as new channels. Our vision is to provide long-term sustainable growth to our shareholders. Our investments continue to provide us with positive results. We will continue to identify and pursue profitable investment opportunities that will enable us to join the ranks of world's leading media companies and become the first Indian media company to do so.”

Punit Goenka

Punit Goenka, Managing Director & Chief Executive Officer, ZEE, commented, “Continuing in line with our robust performance in the previous few quarters, we have witnessed steady growth in the third quarter of fiscal 2016 as well. The advertisement market growth continued its upward trajectory this quarter further aiding our growth while the subscription market witnessed steady growth as well. This quarter saw the rollout of BARC in the rural areas which demonstrated the strength of our channels in the hinterlands of the country.”

Goenka continued, “With more than 210,000 hours of content, ZEE is the leading content player in the Indian TV industry offering quality entertainment to audiences both home and abroad. Our chief focus will remain on creating innovative and high quality entertainment that can be delivered to audiences across consumption platforms. We believe that providing excellent content will remain key for monetizing revenues, from both advertising and subscription standpoint. Going forward, we will further enhance our offerings on various platforms.”

Channel performance

During the quarter, Zee TV was ranked third amongst the Hindi GRCs.. The channel delivered a weekly average of 12 shows among top 50 shows during the quarter led by the top rated shows like Kumkum Bhagya, Jamai Raja and Tashan E Ishq. New shows launched during the quarter Kaala Teeka and India's Best Dramebaaz have performed well since launch. New shows planned for Q4FY16 are Meri Sasu Maa and India's most iconic singing reality show Sa Re Ga Ma Pa.

The group's latest addition to the Hindi GEC bouquet, &tv, continues its upward growth trajectory. The popular fiction show, Bhabhiji Ghar Pe Hai strengthened its position and is among the best performing properties in its slot. The channel launched four new shows in the quarter – Santoshi Maa, Adhuri Kahani Hamari, Ye Kahan Aa Gaye Hum, Darr Sabko Lagta Hai – which helped the channel boost its ratings in the month of December.

ZEE's FTA Channel Zee Anmol further strengthened its No. 1 position in the FTA GEC category. It also became the No. 1 channel in the overall Hindi GEC market for a period of two weeks and has cemented its place as the No. 2 Hindi GEC channel during the quarter.

ZEE's Hindi Movie Cluster – Zee Cinema, &pictures, Zee Classic and Zee Action, continued to lead the genre with the highest viewership share.

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