ZEEL Q3’s advertising revenue jumps 25.7 per cent to Rs 1137.3 crore
The Indian media conglomerate saw slower growth of 7.5 per cent in domestic subscription revenue to 403.6 crore
ZEEL reported a 25.7 per cent YOY increase in domestic advertising revenue of Rs. 1137.3 crore adjusted for sports, for the quarter ending December 31, 2017. The company registered consolidated revenue of Rs. 1838.1 crore. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs. 594.4 crore. PAT for the quarter was Rs 322.2 crore, a 28.5 per cent YOY increase. EBITDA margin for the quarter was at 32.3 per cent.
Advertising revenue for the quarter was Rs. 1202 crore recording a growth of 25.8 per cent.
Dr. Subhash Chandra, Chairman, ZEEL, commented, “It is very heartening to see the rebound in the economy after four quarters. The initiatives taken by the government had some short-term impact on the growth but these measures will strengthen the economy in the long run. Indian M&E sector will be a beneficiary of this growth story as people spend more time and money on consuming entertainment content. ZEEL, with its strong portfolio of entertainment offerings, is well positioned to capitalize on this opportunity.”
Punit Goenka, Managing Director & Chief Executive Officer, ZEEL, commented, “We are delighted to deliver a strong operating performance during the quarter. The slower growth in the last four quarters was due to specific events which required advertisers to recalibrate spends. As the impact of these factors is now behind us, ad spends have bounced back strongly and the outlook remains encouraging. The recent cut in GST rates across a wide category of products should aid the growth.”
He added, “Our domestic ad revenue growth of 26 per cent is a testimony to the fact that television continues to remain the most effective medium for brand building. With a dominant time share along with an increasing reach, television will remain an important medium for advertisers in the foreseeable future. On top of this, digital platforms are driving incremental video consumption which represents another growth opportunity for content monetization. Our new digital platform, Zee5, scheduled to be launched in February, will enable us to capture this growth.”
Subscription revenue for the quarter was Rs. 501.7 crore. Adjusted for the sale of sports business, domestic subscription revenue grew by 7.5 per cent to Rs. 403.6 crore. International subscription revenue stood at Rs 98.1 crore.
Goenka pointed out that the domestic subscription growth rate has been lower than last year. He explained, “The growth so far has been lower than what we had last year as the content deals with our distribution partners are taking slightly longer to conclude due to litigations regarding the TRAI tariff regulation. Last year we had closed majority of these deals in the second and third quarter. However, this does not have any significant impact on our full year outlook for subscription growth.”
During the quarter, ZEEL’s International business revenue was Rs. 187.8 crore. On a comparable basis, the advertising and subscription revenues were lower by 0.8 per cent and 3.4 per cent, respectively.
During the quarter, two HD channels, Zee Telugu HD and Zee Cinemalu HD, were launched taking the count of HD channels to 13.
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