ZEEL domestic ad revenue grew 17.7% YoY in Q4 FY19

The financial results of Zee Entertainment Enterprises Limited shows total revenue for FY19 was Rs 7933.9 crore with a growth of 18.7% YoY

ZEEL

The financial results of Zee Entertainment Enterprises Limited (ZEEL) were announced on Monday and it shows that ZEEL has achieved 17.7% YoY growth in Q4 domestic advertising revenue and 20.9% YoY for FY19.

ZEEL’s total revenue for FY19 was Rs 7933.9 crore with growth of 18.7% YoY. 

For the fourth quarter of FY19, ZEEL reported consolidated revenue of Rs 2019.3 crore. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 568.3 crore with an EBITDA margin of 28.1%. PAT for the quarter was Rs 2917 million.

The growth was driven by all-round strong performance of domestic broadcast, digital and movie businesses. The advertising revenue for FY19 was Rs 5036.7 crore, a growth of 19.8% YoY. While the domestic advertising revenue grew by 20.9% YoY to Rs 4769 crore, international advertising revenue was Rs 2677 crore. 

Earnings Release for Quarter Ended March 31, 2019:
Subscription revenue for FY19 was Rs 2310.5 crore, a growth of 13.9% YoY. While domestic subscription revenue grew by 17.4% YoY to Rs 1923.2 crore, international subscription
revenue was Rs 3873 crore.

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) for FY19 grew by 23.5% and EBITDA margin stood at 32.3%.

For the fourth quarter of FY19, ZEEL has reported a consolidated revenue of Rs 2019.3 crore. 
For the full FY19, ZEEL reported consolidated revenue of Rs 7933.9 crore. 

Subhash Chandra, Chairman, ZEEL, said, “This has been another year of robust
performance and we have ended the year on a strong footing. With the elections behind us, I expect
the economic growth to accelerate. Our M&E industry has grown tremendously over the last few
years, but I believe that it is just the beginning. Entertainment content is becoming increasingly
personalized and that journey will continue with the new TRAI regulation and emergence of digital
medium placing consumer at the centre. This will further motivate all the content producers to create better quality content.”

Punit Goenka, Managing Director & CEO, ZEEL, said: “We have delivered another
quarter of strong operating performance which is commendable given the challenges the industry is
facing in implementing the TRAI tariff order. As I had indicated earlier, the implementation of this
new regulation has led to short-term disruptions, which is understandable given the size of our pay
TV market. Based on the initial signs, I do believe that the changes that this regulation will bring in
will be positive for us.”

The subscription and advertising revenues for the fourth quarter were impacted due to the tariff order. However, our medium-term growth outlook for the business remains unchanged. While the
advertisers have been circumspect to spend due to the uncertainty caused by the regulation and some moderation in the consumer demand, we believe that this is temporary. The tariff order should settle down on the ground soon and the new government’s primary objective will be to stimulate the Earnings Release for the Quarter Ended March 31, 2019.
ZEEL operates 8 Hindi movie channels and 5 regional movie channels. It is planning
to add 3 new regional movie channels in FY20. It continues to invest for acquisition of movie
libraries and future rights. As a part of this strategy, ZEEL has entered into 3-year strategic
output deals with leading production houses.

In the regional markets, ZEEl has maintained leadership position in Marathi and Bengali
markets and established leadership in the Kannada market for the first time ever (U+R level).

Zee Tamil, having gained significantly over the last several quarters, has been stable on
viewership share. Zee Telugu maintained its position as #2 player in the market despite
significant competitive intensity. Zee Keralam is building its presence and has been amongst
the most successful new channel GEC launches based on share.
ZEE5 continues to strengthen its position as the go to platform for on-demand entertainment.
During the year, ZEE5 became the biggest producer of digital original content in India. With more
than 60 shows and original movies across 6 languages launched so far, ZEE5 strives to offer
consumers the widest range of Indian language exclusive content. 
 

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