ZEEL Q3FY19 results: Consolidated advertising revenue grew by 21.7% YoY

During the quarter, ZEEL’s EBITDA grew by 26.9 per cent YoY to Rs 7,543 million

ZEEL

Zee Entertainment Enterprises Limited (ZEEL) and its subsidiaries announced the unaudited consolidated financial results for the quarter ended Dec 31, 2018. For the third quarter of FY19, ZEEL reported consolidated revenue of Rs 21,668 million. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 7,543 million with an EBITDA margin of 34.8 per cent. PAT for the quarter was Rs 5,624 million.  

Subhash Chandra, Chairman, ZEEL said, “India is poised to remain one of the fastest growing economies in the world. Decline in crude oil prices and rationalization of GST rates will further boost the economy and help maintain the growth momentum in consumption. Even in M&E space, content consumption is growing at a brisk pace across mediums. This trend along with macroeconomic tailwinds will drive growth in both advertising and subscription revenues. We have delivered yet another quarter of strong performance across all our businesses. ZEE5 is scaling up in line with our expectations and is on course to become India’s number one digital entertainment platform.” 

Punit Goenka, Managing Director & CEO, ZEEL said, “I am really pleased with our performance this quarter which further strengthens our position as India’s leading entertainment content company. While our television business continues to consolidate its number one position, ZEE5 is quickly establishing itself as one of the leading digital entertainment platforms in the country. ZEE5 has already become the biggest producer of Indian content amongst the digital platforms and the content offering will multiply going forward. Our expanding list of partnerships with telecom operators and players in the digital eco-system, coupled with innovation in pricing, will make ZEE5 accessible to a wider audience.”

“With the launch of our Malayalam channel, Zee Keralam, ZEEL now has the widest footprint in country in terms of the languages covered. It will help us further consolidate our network share. Advertising outlook for the industry looks upbeat and we aim to outpace the industry growth on the back of our growing network share. After much delay, TRAI’s tariff order is now set to be implemented across the country next month. I reiterate that this is a positive step for the industry in the long term and will be beneficial for everyone. While it will take some time for the new system to settle, we are working with all our partners for its smooth implementation,” added Goenka. 

HIGHLIGHTS

  • Total revenue for the quarter was Rs 21,668 million, growth of 17.9 per cent YoY. The growth was driven by the strong performance of broadcast business. 
  • During the quarter, ZEEL’s consolidated advertising revenue grew by 21.7 per cent YoY to Rs 14,626 million. The 20.6 per cent growth in domestic advertising revenue YoY to Rs 13,719 million was driven by the continued strong performance of television business and aided by the emerging digital business. The advertising demand continues to be strong across categories, reflecting positively on the advertising growth outlook. International advertising revenue grew by 40.2 per cent YoY to Rs 907 million due to stronger traction in Europe, US and APAC region.
  • Subscription revenue for the quarter was Rs 6,185 million, growth of 23.3 per cent YoY. Domestic subscription revenue grew by 28.6 per cent YoY to Rs 5,192 million. International subscription revenue was Rs 993 million. 
  • EBITDA for the quarter grew by 26.9 per cent to Rs 7,543 million and EBITDA margin stood at 34.8 per cent. 
  • ZEE5 continues its strong growth recording 56.3 mn MAUs in the month of December, growth of 36 per cent over the last 3 months.  
  • ZEEL further strengthened its position as the #1 television entertainment network with an allIndia viewership share of 20.2 per cent. 
  • Zee Keralam and Zee Keralam HD launched in Kerala market making ZEEL the biggest television network with presence in 9 Indian language markets. 

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