Zee revenues rise 11.5% on strong ad show

Zee Entertainment Enterprises Ltd (ZEE) has outperformed the industry growth rate by registering a 17.4% increase year on year (yoy) in advertising revenues for the April-June quarter of fiscal 2015.

The company's consolidated total income from operations during the first quarter of 2015 rose 11.5% at Rs 1,085.7 crore over the same period last year.

The company's subscription revenues for the June quarter increased 4.4% to at Rs 442.8 crore over the year-ago period, consolidated net profit at Rs 210.57 crore declined 6.26% yoy while profit after tax margin was a healthy 19.3%. Other income during the first quarter was Rs 38.95 crore as against Rs 72.17 crore posted a year ago.

Commenting on the results, Subhash Chandra, chairman, ZEE, said, "Our performance during the quarter reflects the investments that ZEE is making to grow its business and market share. In a highly competitive space, ZEE continues to build its media assets and in the process continues to create value for shareholders."

"We have a strong balance sheet and I am confident that we would take advantage of the growth opportunities ahead of us. During the quarter, the industry has seen a positive rub-off effect of election spending on the TV ad spends. In this backdrop, we expect the television media industry to continue on its double-digit path," he said.

According to Punit Goenka, MD & CEO, ZEE, the network share is up as compared with the corresponding quarter last fiscal, which has translated into a strong performance on the advertising front, outpacing the industry growth rate yet again.