Zee Entertainment Enterprises Ltd (ZEEL) has reported a 34.3% year-on-year increase in advertising revenues at Rs 684.31 crore in the third quarter of this fiscal. Subscription revenue was up 11.4% on-year at Rs 456.5 crore in the October-December quarter. Net profit at Rs 213.6 crore was up 10.5%, while net profit margin stood at 18%.
Subhash Chandra, chairman, ZEE, said, while the overall economic environment stays challenging, ZEE continues to grow its business at a healthy pace.
“The network shares are on an uptrend, buoyed by the addition of new channels. Our investments in the sports business continued during the quarter. We also look to expand our portfolio to take advantage of the growth opportunities ahead of us,” he said, adding that the company’s investments are in line with its philosophy of enhancing long-term shareholder value.
The company’s consolidated operating revenues at Rs 1,188.4 crore in reporting quarter were up 26.6% as compared with Rs 938.82 crore during the same period last year. Operating profit (Ebitda) at Rs 290.7 crore was up 11.3%, while Ebitda margin stood at 24.5%.
Punit Goenka, managing director and chief executive officer, ZEE, said the company has shown a healthy increase in advertising revenues even though there has been a reduction in inventory across the board following a Telecom Regulatory Authority of India (Trai) regulation.
Goenka said starting October 2013 the company reduced ad inventory to 12 minutes per clock hour across the network, as per the Trai norms.
“The cap on advertising, while being negative in the short term, especially for small broadcasters, will in the long term prove beneficial for the industry by restricting inventory and eventually raising value,” he said.
Goenka said the industry-backed television audience measurement company Broadcast Audience Research Council (BARC) is set to give positive fillip to advertising spends on television that’s expected to grow in healthy double digits over the next many years. “We continue to make investments in creating excellent quality content for our existing channels, while also exploring growth opportunities in domestic and international markets as well as new media space,” he said.