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Zee Entertainment ad revenue grows by 6% to Rs 966.5Cr in Q1-18

Zee Entertainment Enterprises Ltd, which operates entertainment channels such as Zee TV and Zee Cinema reported consolidated revenue of Rs 1540.3 crore for the quarter ended June 30, 2017 (Q1 FY18).  This represents a marginal dip of 2% from Rs 1571.6 crore in the same quarter last year. In the previous quarter, total revenues stood at Rs 1528 crore.

The media conglomerate profit after tax (PAT) went up by 16% YoY at Rs 251.6 crore during the quarter. On a QoQ basis, PAT declined by 83% from Rs 1514.2 crore. The company said at that time, that the exceptional Rs 1514.2 crores also includes an extraordinary gain of Rs 1223.4 crores on account of sale of sports business Taj TV (Ten Sports) to Sony Pictures Network.

The company posted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of Rs 484.4 crore, registering a growth of 6.9% from Rs 453.2 crore in the same quarter last year. EBITDA margin stood at 31.4% in first quarter of FY18.

There wasn’t much from Zee on its digital numbers for DittoTV, saying only that its integration with telecom operators had led to “good traction”. Ozee, which Zee’s online property, saw an average of over 65 million video views during the quarter.

Impact of Demonetization settled, but GST disrupted growth momentum: Punit Goenka

Punit Goenka, Managing Director & Chief Executive Officer, ZEEL said that the
“company recovered from the impact of demonetization and the growth in the first two months was strong. However, the momentum was disrupted in June in the run-up to GST implementation. He added that the advertisers reduced ad spends on existing brands and launched fewer products as distribution chain was not fully prepared for seamless transition to the new regime.”

Business highlights

The acquisition of Reliance Broadcast Network Ltd (RBNL) which includes two channels – BIG Magic and BIG Ganga, has been completed. Its financial performance has been consolidated in the Company’s Q1FY18 results. During the quarter, ZEEL network’s viewership share (including RBNL’s channels) was 16.9%.

International Business (excluding sports business): Rs 194.7 crore

The Numbers (for Q1-2018)

Advertising revenue: Rs 966.5 crore, a YoY growth of 6% from 912 crore in the same quarter last year. (Zee says that advertising revenue business was impacted due to currency appreciation and continuation of some region-specific issues)

  • Domestic ad revenue: 868.8 crore, up 6.9% YoY
  • International ad revenue: Rs 57.8 crore.
  • Sports advertising revenue: was Rs 19.8 crore, down from Rs 33.2 crore for the same period last year.

Subscription revenue: Rs 479.1 crore, down 9.3% from Rs 528.2 crore in Q1FY17

  • Domestic subscription revenue: Rs 378.8 crore, down by 9.3% YoY.
  • International subscription revenue: Rs 100 crore which is down 9.1% YoY

Other Businesses

-In August last year, Zee Entertainment Enterprises Ltd sold its sports network TEN Sports to Sony Pictures Network (SPN) in an all-cash deal worth $385 million.

-Zee Music Company continued with its library expansion with acquisition of rights of both Bollywood as well as regional music. In Q4, the ZMC label registered 2.4 billion views on YouTube.

-The company also acquired the balance 49% stake in India Webportal (IWPL). India Webportal runs websites such as BGR.in, Bollywoodlife.com and Cricket Country among others.

-In a separate BSE filing,  ZEEL announced that it has appointed  Bharat Kedia as Chief Financial Officer (CFO) of the company, in place of Mihir Modi, with effect from 1 August.

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