Zee Entertainment Enterprises has reported consolidated revenue of Rs 11,013 million for the second quarter ending September 30, 2013, up 15.5 per cent from Q2 FY13. The consolidated operating profit for the quarter stood at Rs 3,105 million, recording a growth of 42.7 per cent over the corresponding period of the previous fiscal. Profit after tax for Q2 FY14 stood at Rs 2,363 million, a growth of 26 per cent over Q2 FY13.
Advertising revenues for Q2 FY14 stood at Rs 5,833 million, recording a growth of 10.5 per cent on the corresponding period in the previous fiscal. Subscription revenues were up 16 per cent Q2 FY 14 at Rs 4,581 million. During the quarter, domestic subscription revenues stood at Rs 3,350 million, while international subscription revenues were Rs 1,231 million.
Commenting on the Q2 results of the company, Subhash Chandra, Chairman, ZEE said, “While overall business environment has stayed slightly weak, ZEE continues to grow its business at a healthy pace. There was an apprehension about the trends in advertising spends given the overall weakness in the economy. But television media industry has continued to grow in double digits during the second quarter. ZEE has outpaced the industry advertising revenue growth once again.”
Punit Goenka, Managing Director and Chief Executive Officer, ZEE commented, “We have seen robust growth in market share in some of our key channels and overall have been able to maintain network viewership share. Once again we have outperformed the television industry advertising revenue growth and have delivered over 20 per cent YOY growth (excluding sport). Sports performance for the quarter has been good, but due to a heavy sports calendar and rupee depreciation, the business is expected to be in losses for some more time to come.”
The second quarter ending September 30, 2013 saw ZEE launching &pictures, an interactive Hindi movie channel. The quarter also saw the soft launch of Zee Anmol, a free to air Hindi GEC.
Goenka further said, “Beginning next quarter, we will see reduction in advertising inventory across the network in accordance with TRAI regulations. We are in the process of negotiations with advertisers and are confident that this will not have any major impact on revenue monetisation. Digitisation will lead to fragmentation of audiences.”