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Zee Entertainment Enterprises Limited (ZEEL) has reported advertising revenues of Rs 779.9 crore for the quarter ended June 30, 2015, which was up 25.4% year-on-year (y-o-y) compared to Rs 622.1 crore in the same period last year. Advertising revenues represented 58% of the total revenues compared to 59% in the same quarter last fiscal.

Subscription revenues stood at Rs 462.5 crore at the end of Q1 FY16 recording a growth of 12.2% over Q1 FY15. During the quarter, domestic subscription revenues stood at Rs 368 crore while international subscription revenues stood at Rs 94.5 crore. Subscription revenues formed 35% of the total revenues.

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Other sales and services revenue, which include syndication sales, film distribution, commission on sales, play out & transmission services, facility usage income, stood at Rs 97.4 crore  The segment had recorded revenue of Rs 20.8 crore during the corresponding period last fiscal. The other sales and services segment represented 7% of total revenues in Q1 FY16 compared to 2% in Q1 FY15.

Profit after Tax (PAT) for the quarter was Rs 242.3 crore, recording a growth of 15.4% over Q1 FY15. Operating profit (EBITDA) for the quarter stood at Rs 3,112 million. EBITDA Margin stood at 23.2%. Total revenues stood at 1339.9 crore. Operating profit (EBITDA) for the quarter was Rs 311.2 crore.

Acquisition of Sarthak Entertainment Limited 

ZEEL’s board also approved in-principle acquisition of 100% equity stake in Sarthak Entertainment Private Limited, which owns and operates ‘SARTHAK’ an Odia language general entertainment channel. The said acquisition shall be from the current shareholders, subject to requisite regulatory approvals, as an all-cash deal at a consideration of maximum of Rs 115 crore, including Rs 15 crore payable in financial year 2017 and 2018, linked to certain performance milestones of the channel.

Developments in the quarter

– In June, Zee Entertainment Enterprises Ltd’s (ZEEL) digital ecosystem Zee Digital Convergence (ZDC) and its content studio Essel Vision Productions Ltd said that they were working on a new online-only instrumental musical show called Life is Music. The show will be available on lifeismusic.in and ZEEL’s live TV streaming and VoD service Ditto TV. This is ZEEL’s first attempt at producing original digital content.

– ZEEL also hired Piyush Sharma as the CEO of new initiatives for India and Asia-Pacific.  In his new role, Sharma will be responsible for new initiatives like showcasing programming and content across multiple media platform including web, mobile and on-demand video.

– ZEEL also partnered with the US based Internet TV portal FilmOn to launch a customised channel called Zee Bollywood TV. The channel will be broadcast in Hindi with English subtitles and be available for free on the desktop, tablet and mobile.Through the partnership will broadcast Zee’s programmed content to Indian audiences in the US and UK as well. The HD channel will also broadcast premium content, along with Bollywood movies, talk shows and drama shows.

Download: Financials and Press Release