Zee net profit up 26% in Q4FY19

For the fourth quarter of FY19, Zee Entertainment reported consolidated revenue of Rs 20,193 million, growth of 17.0% YoY over the Q4FY18. Advertising revenue for the quarter was Rs 12,175 million, a growth of 16.0% YoY. Domestic advertising revenue grew by 17.7% YoY to Rs 11,575 million. International advertising revenue for the quarter was Rs 600 million.

Subscription revenue for the quarter was Rs 5,653 million, growth of 3.4% YoY. Domestic subscription revenue grew by 3.9% YoY to Rs 4,696 million. International subscription revenue was Rs 957 million.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 5,683 million with an EBITDA margin of 28.1%.

PAT for the quarter was Rs 2,917 million, up 26% from Rs 2,310 million in the corresponding quarter of the previous year.

For the full year FY19, ZEEL reported consolidated revenue of Rs 79,339 million, growth of 18.7% YoY.

Advertising revenue for FY19 was Rs 50,367 million, growth of 19.8% YoY. Domestic advertising revenue grew by 20.9% YoY to Rs 47,690 million. International advertising revenue was Rs 2,677 million.

Subscription revenue for FY19 was Rs 23,105 million, growth of 13.9% YoY. Domestic subscription revenue grew by 17.4% YoY to Rs 19,232 million. International subscription revenue was Rs 3,873 million.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 25,640 million with an EBITDA margin of 32.3%.

PAT for the year was Rs 15,671 million and the PAT margin was 19.8%. The profit was up 6% from Rs 14,791 million in FY18.

Subhash Chandra

Subhash Chandra, Chairman, ZEEL, said, “This has been another year of robust performance and we have ended the year on a strong footing. With the elections behind us, I expect the economic growth to accelerate. Our M&E industry has grown tremendously over the last few years, but I believe that it is just the beginning. Entertainment content is becoming increasingly personalized and that journey will continue with the new TRAI regulation and emergence of digital medium placing consumer at the centre. This will further motivate all the content producers to create better quality content.”

Punit Goenka

Punit Goenka, Managing Director & CEO, ZEEL, said, “We have delivered another quarter of strong operating performance which is commendable given the challenges the industry is facing in implementing the TRAI tariff order. As I had indicated earlier, the implementation of this new regulation has led to short-term disruptions, which is understandable given the size of our pay TV market. Based on the initial signs, I do believe that the changes that this regulation will bring in will be positive for us.

The subscription and advertising revenues for the fourth quarter were impacted due to the tariff order. However, our medium-term growth outlook for the business remains unchanged. While the advertisers have been circumspect to spend due to the uncertainty caused by the regulation and some moderation in the consumer demand, we believe that this is temporary.

The tariff order should settle down on the ground soon and the new government’s primary objective will be to stimulate the Earnings Release for the Quarter Ended March 31, 2019 consumer demand, both of which will inspire confidence in the advertisers. The new subscription regime would be beneficial for all the stakeholders in the value chain.”

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