ZEEL Q2FY17 net up 27% to Rs 238.4 cr on the back of strong revenue growth

MUMBAI: Subhash Chandra-promoted Zee Entertainment Enterprises (ZEE) has posted a 27 per cent jump in net profit for the second quarter ended September 30, 2016.

The bottom-line of the media conglomerate has swelled on the back of a strong double digit growth in both advertising as well as subscription revenues.

ZEE’s consolidated net profit stood at Rs 238.4 crore in Q2FY17, compared to Rs 187.6 crore a year ago. Operating revenue grew 23 per cent, to Rs 1,695.4 crore, while expenses were up 18.3 per cent to Rs 1,206.2 crore, compared to the year-ago period.

ZEEL’s consolidated operating profit (EBITDA) for the quarter was up 36.4 per cent to Rs 489.2 crore, while EBITDA margin stood at 28.9 per cent.

Subhash Chandra, chairman, ZEE, said, “ZEE reported well-rounded strong growth in revenues during the first half of fiscal 2017. While we continue to add new channels to our domestic and international broadcasting businesses our new initiatives in movies, music, events and digital are taking shape and have started contributing to growth.”

Strong revenue growth

ZEE’s consolidated advertising revenues grew by 15.7% to Rs 959.2 crore in the quarter under review, despite the high base created by 34.7% y-o-y growth in Q2FY16. The company said it was able to deliver strong growth even though there was moderation in ad spends, especially, from e-commerce segment and slight drop in ratings of flagship GEC in the previous quarter.

Total subscription revenues in Q2 grew by 21.7% to Rs 583.3 crore. The strong growth in domestic subscription revenue is attributable to early closure of content deals this year as compared to the previous years.

Punit Goenka, MD at ZEE, added, “At ZEE we are pleased to deliver yet another quarter of satisfying business and financial performance. Our advertising revenues continue to grow ahead of market on the back of improving viewership share and better monetization of our bouquet. Growth in domestic subscription revenue was aided by catch up revenue in Q2.”