The Board of Directors in its meeting held recently approved and took on record the unaudited consolidated financial results of Zee Entertainment Enterprises Limited (ZEEL) and its subsidiaries for the quarter ended June 30, 2017.
ZEEL reported consolidated revenue of Rs 15,403 million for the first quarter of fiscal 2018. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 4,844 million. PAT for the quarter was Rs 2,516 million. EBITDA margin for the quarter stood at 31.4%.
Subhash Chandra, Chairman, ZEEL, commented, âImplementation of Goods and Services Tax (GST) is a big step towards formalisation of the Indian economy. This will help plug leakages in the system and the long-term benefits from this initiative will further drive the growth rate of the Indian economy. Strong economic growth and increasing share of formal sector bodes well for ad spends growth.â
Punit Goenka, Managing Director & Chief Executive Officer, ZEEL, commented, âIt was yet another satisfying quarter with a strong financial and operating performance. During the quarter, we recovered from the impact of demonetisation and the growth in the first two months was strong. However, the momentum was disrupted in June in the run-up to GST implementation. The advertisers reduced ad spends on existing brands and launched fewer products as distribution chain was not fully prepared for seamless transition to the new regime. Despite the challenge, our domestic ad revenue grew by 7%. Notwithstanding the short-term impact, we believe that GST will aid the advertising spends in the long-run.â
âOur domestic subscription revenue, adjusted for the sale of sports business, grew by 14.5%. While there is still uncertainty regarding the implementation of the new tariff regulation due to pending litigations, we are confident of driving the subscription business on the back of the strong competitive positions of our channels in the key genres,â added Goenka.