Zee posts 187% jump in net profit in Q2FY22

Zee Entertainment Enterprises on Thursday posted a 187.19% year-on-year (YoY) growth in consolidated net profit to Rs 270.2 crore for the quarter ended September 30. It had posted a profit of Rs 94.07 crore in the same period last year.

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Consolidated revenue from operations witnessed an increase of around 15% year-on-year to Rs 1,978.80 crore.

"Domestic Ad revenues grew both YoY and QoQ by 20.1% % & 18.9% respectively, While revenue grew but Q2 continued to be partially impacted by Covid in first half of the quarter," the company said in a stock exchange filing.

On the other hand, subscription revenues declined by 1.5%. "Delay in NTO 2.0 implementation continues to impact pricing. The new implementation timeline for NTO 2.0 implementation is April 01, 2022," Zee Entertainment said.

The company's consolidated operating profit increased 31.4% YoY to Rs 412.10 crore. EBITDA margin also grew to 20.8% from 18.2% in the corresponding quarter last year.

In an analyst call, Punit Goenka, MD and CEO, Zee Entertainment, said, "The second quarter has been one-off recovery and revival for us and industry at large. We will be able to guide on the margin front by the end of next quarter. Gradual re-opening of the economy boosted sentiment."

Commenting on the proposed merger with Sony Pictures Networks India, Goenka added that the due diligence process has commenced and is in steady progress. "We are confident that the process will be completed in stipulated timelines or even before that."

"Viewership on TV and digital platform continued to touch record levels. As per our plans highlighted in the previous quarter, we have launched 30 plus shows across our channels, leading to the gradual recovery of viewership in the markets where we have lost share," said Goenka, adding green shoots in demand are visible.

He expects that the robust growth in performance to continue in the coming quarters. However, the company did not give any update related to the dispute with its largest shareholder Invesco.

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