Zee Entertainment Enterprises has reported a 6.1 per cent growth in its consolidated operating profit for the first quarter of FY2015 at Rs 3,092 million over Q1 FY14. Profit after tax for the quarter stood at Rs 2,100 million, while PAT margin stood at 19.3 per cent.
ZEE’s Q1 revenues were generated primarily from advertising sales and subscription revenues. ZEE’s advertising revenues during the quarter were Rs 6,221 million, registering an increase of 17.4 per cent y-o-y.
Total subscription revenues for the quarter stood at Rs 4,428 million, registering a growth of 4.4 per cent over the corresponding quarter of last fiscal. During the quarter, domestic subscription revenues stood at Rs 3,228 million.
Commenting on the results of the company, Subhash Chandra, Chairman, ZEE said, “During the quarter, the industry has seen a positive rub-off effect of Election spending on the TV ad spends. In this backdrop, we expect television media industry to continue on its double-digit growth path.”
He further said, “Our performance during the quarter reflects the investments that ZEE is making to grow its business and market share. This has been accompanied by a strong improvement in the operating performanceof the existing businesses.”
Punit Goenka, Managing Director and CEO, ZEE commented, “The quarter gone by has been a satisfactory quarter for us. The network share is up as compared to the corresponding quarter last fiscal, which has translated into a strong performance on the advertising front, outpacing the industry growth rate yet again.”
Speaking about the outlook for the business, Goenka added, “The rollout of digitisation, even though with some delays, is a positive development for the industry and will provide new growth opportunities throughout the television media value chain.”
He further said that advertising spends on television are expected to grow in healthy double digits over next many years. “Rollout of BARC and change in advertising currency from CPRP to CPT is expected to give it a positive fillip,” he added.