Zee Entertainment Enterprises Limited (ZEE) today reported its second quarter fiscal 2016 consolidated revenue of Rs 13,849 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 3,546 million. PAT for the quarter was Rs 2,463 million. The EBITDA margin for the quarter stood at 25.6% and the PAT margin was 17.8%.
Advertisement Revenue stood at Rs 735 million, Subscription Revenue stood at Rs 1,039 million, Other Sales and Services stood at Rs. 248 million, and Total Revenue stood at Rs 2,022 million.
Dr. Subhash Chandra, Chairman, ZEE, stated, “The economic growth momentum in India continues to remain strong. The GDP growth seems to be on an upswing after bottoming out and the underlying economic prospects are positive as well. With various economic reforms in the pipeline the overall business environment in India is improving. We hope that the Media industry will reap the benefits of the improved environment through higher advertisement and subscription revenues.”
Commenting on the results of the Company, Dr. Chandra added, “ZEE has seen an impressive performance during the second quarter. The improvement in advertisement industry and improved performance of our network has helped us grow ahead of the market. We continue to see the positive results of our investments. We will endeavor to continue on this track going forward and pursue new opportunities that will yield long term growth. Our effort is to entertain audience across the world.”
Mr. Punit Goenka, Managing Director & Chief Executive Officer, ZEE, commented, “We are quite pleased with our quarterly performance and it continues to remain on track. We have grown as a network on the back of superior programming on our new and existing products. The improvement in the overall advertisement market has further aided our strong growth. The domestic subscription market has also seen steady growth.”
Speaking about the outlook of the business, Mr. Goenka continued, “ZEE is the leading content player in the Indian TV industry offering maximum hours of content for audiences both home and abroad. Going forward, our endeavor would be to further enhance our offerings and be ahead of the market in delivering innovative and high quality entertainment to our viewers across consumption platforms. We believe that in this fast evolving media and entertainment space delivering excellent content will remain key for monetizing revenues, from both advertising and subscription standpoint.”
Our typical marketing budget is usually 10 per cent of the topline spend