Zee Entertainment Enterprises Limited ZEEL’s advertising revenue increased to Rs 959.2 crore during the quarter ending September 2016 (Q2 FY17), up 15.7% Year-on-Year (Y-o-Y) from Rs 829 crore in the same quarter, last year (Q2FY16). Ad revenues represented 57% of the total revenue for the quarter, down from 60% in the same quarter last year. Of the total advertising revenue for the quarter, only Rs 79.2 crore accounted for domestic advertising revenue, while Rs 880 crore accounted for international advertising revenue.
Subscription revenue stood at Rs 583.3 crore for Q2 FY17, up 21.7% YOY from Rs 479.1 crore in the same quarter, last year. Subscription revenue represented 34% of the total revenue for the quarter, down from 35% in the same quarter, last year. During this quarter, the domestic subscription revenues stood at Rs 467.5 crore while the international subscription revenue at Rs 115.8 crore.
Other sales and services revenue, which include syndication sales, film distribution, commission on sales, play out & transmission services, facility usage income, stood at Rs 152.9 crore for Q2 FY17, up 117% YOY from Rs 70.5 crore in the same quarter last year. The other sales and services segment represented 9% of the total revenue for the quarter, up from 5% in the same quarter last year.
Profit after Tax (PAT) for the quarter was Rs 244 crore up 28.3% from Rs 190.2 crore in the same quarter last year. Operating Profit (EBITDA) for the quarter stood at Rs 4,89.2 crore. EBITDA Margin stood at 28.9%.
During the quarter, Zee Entertainment’s OTT platform, Ditto TV reduced its subscription price and clocked close to 200 million video views while ZEEL’s music label, Zee Music reported more than a billion views on YouTube during the quarter ending September 2016.
Sale of Ten Sports to Sony Pictures Network:
Though Zee Entertainment’s sports channel Ten Sports was sold to Sony Picture Network for Rs 2,600 crore in September 2016, it was not reflected in the financials owing to pending fulfilment of certain conditions.
Other developments with Zee Entertainment:
In August, ZEEL had written off Rs 33.1 crore of its investment in UK based MirriAD. Zee had first invested in MirriAD in 2014, with the objective of developing technology for product placement and embedding advertising into video streams.
In July, Idea Shop Web and Media Private Limited, the company behind the website and loyalty card business Brownpaperbag, became a subsidiary of ZEEL. In the same month, India Webportal Private Ltd (India.com), a subsidiary of ZEEL turned profitable.