Zee records 19.2% growth in ad revenues in Q1 FY 2017 at Rs 9,120 million

The consolidated operating revenues stood at Rs 15,716 million, PAT at Rs 2,181 million and PAT margin at 13.9%

BestMediaInfo Bureau | Mumbai | July 27, 2016

Zee Entertainment Enterprises Limited (ZEE) recently reported its first quarter fiscal 2017 consolidated revenue of Rs 15,716 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 4,532 million. Profit after tax (PAT) for the quarter was Rs 2,181 million. The EBITDA margin for the quarter stood at 28.8 per cent and the PAT margin was 13.9 per cent.

Advertising revenues for the quarter were Rs 9,120 million, recording a growth of 19.2 per cent over Q1 FY16. During the quarter, domestic advertising revenues stood at Rs 8,415 million while international advertising revenue stood at Rs 705 million.

Subscription revenues were Rs 5,282 million for the quarter ended June 30, 2016 recording a growth of 14.2 per cent over Q1 FY16. During the quarter, domestic subscription revenues stood at Rs 4,179 million while international subscription revenues stood at Rs 1,103 million.

Consolidated operating revenues for the quarter stood at Rs 15,716 million, recording a growth of 18.5 per cent, compared to the corresponding quarter last fiscal.

Subhash Chandra

Dr Subhash Chandra, Chairman, ZEEL, stated, “Buoyed by the news of a normal monsoon and the implementation of various legislative reforms, the Indian economy is expected to continue its steady growth. The government's acceptance of new pay commission recommendations is good news as it will boost consumer spending. Although the investment activity might still take some time to pick-up, the government's plan to double agricultural income, if executed, augurs well for the overall economy.”

Commenting on the results of the Company, Dr Chandra added, “As for the performance of the company, the financial results once again highlight the strong underlying fundamentals of the company. The advertising and subscription revenues continue to drive the company's growth. Taking a long term view of the business trends we are committed to become a global content company and will make suitable investments to achieve that objective.”

Punit Goenka

Punit Goenka, Managing Director and Chief Executive Officer, ZEEL, said, “We have started the new fiscal on a positive note, delivering successful result in the first quarter. On the back of continued steady economic recovery, the company once again managed to outperform the market. The advertising growth is holding up and the subscription revenue is maintaining a steady growth. While the advertising could receive a fillip if the consumer spending improves, on the subscription front the industry awaits the regulatory guidelines which will shape the subscription revenue growth over the next few quarters.”

Goenka continued, “The preference of the consumers keeps on evolving with time and we have consistently stayed ahead of the curve, and in many cases helped shape it. As an entertainment company, it is imperative for us to experiment with new content and innovate new formats, and we will continue to do so. We are making investments in new growth verticals with an aim that they will start contributing to company's success in the future. An effort in this direction was the re-launch of company's paid OTT platform dittoTV with new subscription plans. Our movie production business has started delivering results which is evident with movies like Sairat which became the highest grossing Marathi movie of all time.”

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