Zee Media reported consolidated revenue of Rs 170 crore in the quarter ended September 2018 (Q2FY2019), which is an improvement of 35% over the same quarter last year and an increase of 9% over the preceding quarter.
— Advertising revenue: Rs 149 crore
— Subscription revenue: Rs 13 crore
The company reported profits of Rs 17.2 crore, significantly up by 355% (Rs 3.7 crore) over the same quarter last year, but reduced by 51% (Rs 55.3 crore) over the preceding quarter.
Note that the company’s Profit after Tax (PAT) was Rs 17 crore this quarter, which is 68% lower over a PAT of Rs 55 crore in the preceding quarter. However, it incurred an expense of Rs 12 crore from “discontinued operations” (sale of Ez-Mall Online) in the last quarter and paid tax on these operations of upto Rs 7 crore, significantly reducing the profit for the period.
Sale of Ez-Mall
In June, the company discontinued its e-commerce business Ez-Mall online and sold its full equity stake in the entity for Rs 8.6 crore. Ez-Mall Online ceased to be a subsidiary of Zee Media from June 28. The company’s gain on disposal on investments in Ez-Mall amounted to Rs 41 crore, which has now been accounted for the earnings of the preceding quarter.
Note that Zee Media now operates only in television broadcasting.
EBITDA stood at Rs 40.8 crore, an increase of 52% from Rs 26.7 crore in the same quarter last year.
- Operating revenue grew 35.5% year-on-year to Rs 168 crore in this quarter.
- The company’s expenditure increased by 30% year-on-year to Rs 127.7 crore this quarter. The increase is mainly on account of three new channels launched last year: Zee Salaam, Zee 24 Kalak, and Zee Uttar Pradesh-Uttarkhand.
- Digital: Zeenews.com received 722 million page views in the quarter, up by 25% year-on-year.
- Zee Media’s 14 news channels reached 377 million viewers in the quarter.
- Zee Business increased market share during stock market hours from to 33% from 17% QoQ.
- Zee Media acquired the remaining 40% balance stake in Zee Akaash News, which became a subsidiary under the company on June 1.