Zee Entertainment Enterprises Ltd (ZEEL), which operates entertainment channels such as Zee TV and Zee Cinema, reported consolidated revenues of Rs 2034.7 crore for the quarter ended September 30, 2018 (Q2 FY19). This represents an increase of almost 14% from Rs 1785 crore in the same quarter last year. In the previous quarter, the total revenues stood at Rs 1821.7 crore.

  • Advertising revenue stood at Rs 1210.6 crore, making up 59% of the total revenue this quarter.
  • ZEEL’s expenditure went up by 20% year-over-year and stands at Rs 1386 crore this quarter.
  • Net profit increased by 18% quarter-on-quarter at Rs 386 crore, but has fallen 38% year-on-year.

ZEEL completed the second phase of disposal of its Sports business to Sony Pictures this quarter.

Revenue highlights Q2FY19

ZEEL captures an all-India viewership share of 19.9%. Advertising and subscription revenues form the largest chunks of revenue:

  • Advertising revenue: Rs 1210.6 crores, year-on-year growth of 22%. The company expects growth in this segment, especially with the launch of a new channel in Kerala.
    • Domestic advertising revenue: Rs 1152 crore, grew by 23.3% year-on-year
    • International advertising revenue: Rs 58 crore
  • Subscription revenue: Rs 608 crore, year-on-year increase of 21%
    • Domestic subscription revenue: Rs 509 crore, grew by 26.0% year-on-year
    • International subscription revenue: Rs 98 crore


ZEEL claims that its over-the-top platform Zee5 has 41 million monthly active users and average time spent on the platform is 31 minutes. In terms of users, Zee5 has seen a 190% growth in users since April 2018. ZEEL MD and CEO Punit Goenka also said Zee5 has original content as well as partnerships coming along. According to Goenka, advertising and subscription revenue performance gives impetus for investment in the digital arm.

Remember that Zee5’s content partnership with Reliance Jio fell through in August after the two failed to reach a pricing agreement. Zee5 then signed a deal with Bharti Airtel to feature Zee’s content on Airtel apps and products. However, ZEEL and Reliance Jio signed a fresh deal once again this week, making Zee’s 37 channels and on-demand library available on all Jio apps.

Download: Financials and Press Release