Zee Entertainment Enterprises Ltd, which operates entertainment channels such as Zee TV and Zee Cinema reported consolidated revenue of Rs 1838 crore for the quarter ended December 31, 2017 (Q3 FY18). This represents an increase of 12% from Rs 1639 crore in the same quarter last year. In the previous quarter, total revenues stood at Rs 1582 crore.
The media conglomerate’s Profit After Tax (PAT) went up by 28.5% YoY at Rs 322 crore during the quarter.
Despite the fact that Zee had sold its sports business -Ten Sports- to Sony, company’s total expenditure cost increased by 10.7%. The company said in its statement that advertising, Publicity and other expenses increased by 50% YoY on account of a brand refresh, 25-year celebration related events and promotion cost associated with movies.
The company posted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of Rs 594.4 crore, registering a growth of 15.2% from Rs 515.8 crore in the same quarter last year. EBITDA margin stood at 32.3% for the Q3FY18.
In terms of overall growth, Punit Goenka, Managing Director & CEO, ZEEL said that the slower growth in the last four quarters was due to specific events which required advertisers to recalibrate spends. Also said that the recent cut in GST rates across a wide category of products should aid the growth.
Financial highlights- Q3FY18
Advertising revenue: Rs 12,02 crore, a YoY growth of 26% from Rs 955.5 crore in the same quarter last year.
Domestic ad revenue: Rs 1137.3 crore, up 26%
International ad revenue: Rs 64.7 crore, declined by 0.8%. The company said that it was impacted due to currency appreciation and continuation of some region-specific issues.
Subscription revenue: Rs 501.7 crore, down 15.5% from Rs 593.5 crore in the same quarter last year. ZEEL said in a statement that content deals with distributors are taking slightly longer due to litigations regarding the TRAI tariff regulation.
Domestic subscription revenues: Rs 403.6 crore, up by 7.5%.
International subscription revenues Rs 98 crore, down 3.4%.
Zee did not mention any numbers on its digital platform DittoTV. But, regarding its video-on-demand platform Ozee, ZEEL said that it registered an average of 145 million video views per month during the quarter, which is 26% up from the previous quarter.
Punit Goenka confirmed that the company will launch its new digital platform, Zee5 in February.