Zee Entertainment Enterprises Limited (ZEE) has reported its first quarter fiscal 2017 consolidated revenue of Rs 15,716 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 4,532 million. PAT for the quarter was Rs 2,181 million. The EBITDA margin for the quarter stood at 28.8% and the PAT margin was 13.9%.
Advertising revenues for the quarter were Rs 9,120 million, recording a growth of 19.2% over Q1 FY16. During the quarter, domestic advertising revenues stood at Rs 8,415 million while international advertising revenues stood at Rs 705 million.
Subscription revenues were Rs 5,282 million for the quarter ended June 30, 2016 recording a growth of 14.2% over Q1 FY16. During the quarter, domestic subscription revenues stood at Rs 4,179 million while international subscription revenues stood at Rs 1,103 million.
Operating profit (EBITDA) for the quarter stood at Rs 4,532 million. EBITDA margin stood at 28.8% while Profit after Tax (PAT) for the quarter ended June 30, 2016 was Rs 2,181 million. PAT Margin stood at 13.9%.
Dr. Subhash Chandra, Chairman, ZEEL, stated, “Buoyed by the news of a normal monsoon and the implementation of various legislative reforms, the Indian economy is expected to continue its steady growth. The government’s acceptance of new pay commission recommendations is good news as it will boost consumer spending. Although the investment activity might still take some time to pick-up, the government’s plan to double agricultural income, if executed, augurs well for the overall economy.”
Commenting on the results of the Company, Dr. Chandra added, “As for the performance of the company, the financial results once again highlight the strong underlying fundamentals of the company. The advertising and subscription revenues continue to drive the company’s growth. Taking a long term view of the business trends we are committed to become a global content company and will make suitable investments to achieve that objective.”
Punit Goenka, Managing Director & Chief Executive Officer, ZEEL, commented, “We have started the new fiscal on a positive note, delivering successful result in the first quarter. On the back of continued steady economic recovery, the company once again managed to outperform the market. The advertising growth is holding up and the subscription revenue is maintaining a steady growth. While the advertising could receive a fillip if the consumer spending improves, on the subscription front the industry awaits the regulatory guidelines which will shape the subscription revenue growth over the next few quarters. The preference of the consumers keeps on evolving with time and we have consistently stayed ahead of the curve, and in many cases helped shape it. As an entertainment company, it is imperative for us to experiment with new content and innovate new formats, and we will continue to do so. We are making investments in new growth verticals with an aim that they will start contributing to company’s success in the future. An effort in this direction was the relaunch of company’s paid OTT platform dittoTV with new subscription plans. Our movie production business has started delivering results which is evident with movies like Sairat which became the highest grossing Marathi movie of all time.”
During the quarter, Zee TV was ranked third amongst the Hindi General Entertainment Channels. The channel was led by top rated shows like Kumkum Bhagya, Ek Tha Raja Ek Thi Rani, Jamai Raja and SaReGaMaPa.
&tv maintained its share in the urban GEC genre. The channel continued to innovate new content formats and concepts. Jai Santoshi Maa and Bhabhiji Ghar Pe Hain were the leading shows on the channel during the quarter. Indian adaptation of the successful international talent show So You Think You Can Dance was launched during the quarter.
ZEE’s FTA Channel Zee Anmol was the number 2 channel in the FTA GEC category during the quarter. The channel launched several shows from the catalogue like Kasam Hai Tujhe, Afsar Bitiya and India’s Best Dramebaaz. Shows like Jodha Akbar, Bandini and Meri Doli Tere Angana were the top performing shows on the channel.
ZEE’s Hindi Movie Cluster of Zee Cinema, &pictures, Zee Classic and Zee Action continued to lead the genre with the highest viewership share. This quarter saw the world television premiere of movies like Ghaayal Once Again, Welcome Back and Tamasha.
The Network’s English entertainment channels - Zee Café and Zee Studio continue to perform well in their respective genres. Zee Café was the number 2 channel in the English GEC genre with Two and a Half Men Season 9-11 and Gotham Season 2 being the key shows launched on the channel during the quarter. The English movie channel Zee Studio enthralled the audience with the premiere of blockbuster Hollywood movies like The Amazing Spiderman and Captain America – The Winter Soldier.
ZEE’s advertising revenues during the quarter were Rs 9,120 million, showing an increase of 19.2% y-o-y. Total subscription revenues for the quarter were Rs 5,282 million. During the current quarter, domestic subscription revenues stood at Rs 4,179 million registering a growth of 13.5% over corresponding period last fiscal, while international subscription revenues were Rs 1,103 million, up 16.7% over last fiscal.