Zee Entertainment Enterprises Limited (ZEEL) today announced its unaudited consolidated financial results for the quarter ended June 30, 2019.
ZEEL registered consolidated revenue of Rs 2008.1 crores in the quarter ending June 30, 2019. Subscription revenues increased as compared to the previous quarter’s Rs 565.27 crores and stood at Rs 708.77 crores for the period ending June 30, 2019.
Advertisement revenues went down primarily on the account of the decision to convert its two leading FTA channels to pay. The temporary shift of ads from entertainment channels to sports channels also took a toll.
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) was Rs. 6,598 million with an EBITDA margin of 32.9%. PAT for the quarter was Rs. 5,306 million.
Mr. Punit Goenka, Managing Director, and CEO, ZEEL, commented, “We delivered another quarter of strong performance despite the operational challenges faced by the industry due to the implementation of TRAI tariff order. We have witnessed a strong uptake of our channels across markets which is reflected in the 47% growth of our domestic subscription revenues. It validates our standing as the #1 entertainment network of the country, built on the foundation of a strong position in each of the markets we operate in. We are confident that the new tariff regime is going to be beneficial for all the stakeholders and will greatly improve the consumer experience.
Domestic advertising growth of 4.2% Yo Y is considerably lower than the growth in past quarters. This is primarily on account of the decision to convert our two leading FTA channels to pay, which significantly impacted the ad growth for the quarter. Additionally, the implementation of the new tariff order in the previous quarter negatively impacted the reach and viewership of most entertainment channels, leading to a temporary shift in some of the ad spends from entertainment to sports. We believe that the underlying demand for advertising still remains strong and we are confident that spends would come back as the tariff order settles down and the festive season kicks in.
ZEE5 continues its strong run and is working towards achieving its aim of becoming India’s # 1 digital entertainment platform. In the international markets, it has seen an encouraging response in the initial phase. I am confident that with its strong content line-up and partnerships with leading players in the digital eco-system, the value proposition of the platform and engagement with the consumers will continue to improve.”
During Q1 FY 19-20, ZEEL maintained its position as the #1 network in the non-sports entertainment network. ZEEL’s strong movie library helped it maintain its leadership in the Hindi movie genre.
At the time of going to press ZEEL’s stock was trading at Rs 360.95 down by Rs 2.60 or 0.6 % as compared to the previous close of Rs 363.35 on the BSE.
