Zee Entertainment Enterprises' Q3FY20 (October-December) consolidated net profit fell sharply by 37.9% year-on-year due to lower revenue and operating income.
Profit during the quarter declined to Rs 349.4 crore, from Rs 562.4 crore in the same period last year.
Revenue from operations in Q3 dropped 5.5% to Rs 2,048.7 crore YoY, dented by lower advertising revenue.
Revenue from advertising segment fell 15.8% to Rs 1,230.8 crore during the December quarter due to tough macro-economic environment. The company said that most of its advertisers were going through a slow-growth period and that led to a cut in advertising spends.
"Third quarter is normally a strong growth period for us; however, the tough macro-economic environment led to a decline in our advertising revenues. Most of our advertisers are going through a slow-growth period and that has led to a cut in advertising spends. I believe that the worst phase is behind us and we will start seeing an improvement from the next quarter," Punit Goenka, Managing Director and CEO said.
The subscription revenue for the quarter rose 15.4% YoY to Rs 713.7 crore. Domestic subscription revenue jumped 21.7% to Rs 631.7 crore during the quarter under review.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) in Q3 plunged 25% to Rs 565.8 crore and margin contracted 720bps to 27.6% compared to year-ago.