Zee Entertainment Enterprises has reported net profit of Rs 1,933 million for the third quarter ended December 31, 2012, a growth of 40.5 per cent YOY. This hike comes on the back of strong growth in subscription revenues at Rs 4,098 million, up 25.6 per cent YOY.
Consolidated operating revenues for the quarter stood at Rs 9,388 million, recording a growth of 26.3 per cent as compared to the corresponding quarter last fiscal. Advertising revenues for Q3 stood at Rs 5,094 million, a growth of 28.8 per cent over Q3 FY12.
According to analysts at Motilal Oswal Securities, Zee’s Q3 profit after tax of Rs 1,933 million is better than estimate, led by higher subscription revenue and lower loss in sports business. Ad revenue growth is in line with estimate, with expansion of digitisation. “DTH subscription grew 26 per cent, which led to earning surprise. Reduction in losses of sports business was a positive surprise,” the analysts added.
Commenting on the company’s Q3 results, Subhash Chandra, Chairman, ZEE said, “The highlight of this quarter is the strong growth momentum in advertising revenues, despite subdued spends.” He further said that the first three quarters of this fiscal have been good for ZEE with a strong performance relative to the industry and competition. “With one quarter to go, we are looking forward to a strong growth this year,” Chandra added.
Punit Goenka, MD and CEO, ZEE added here, “The subscription revenue during the quarter is the highest ever and with digitisation rollout, will improve in the medium term. Overall I am confident about the next 12 months and continue to make further investments in new content and channels.”