Mumbai: The Board of Directors has approved and taken on record the unaudited consolidated financial results of Zee Entertainment Enterprises Limited (ZEEL) and its subsidiaries for the quarter ended June 30, 2017.
ZEEL reported consolidated revenue of Rs. 15,403 million for the first quarter of fiscal 2018. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) wasRs. 4,844 million. PAT for the quarter was Rs. 2,516 million. EBITDA margin for the quarter stood at 31.4%.
Dr. Subhash Chandra, Chairman, ZEEL, commented, “Implementation of Goods and Services Tax (GST) is a big step towards formalization of the Indian economy. This will help plug leakages in the system and the long-term benefits from this initiative will further drive the growth rate of the Indian economy. Strong economic growth and increasing share of formal sector bodes well for ad spends growth.”
Mr. PunitGoenka, Managing Director & Chief Executive Officer, ZEEL, commented, “It was yet another satisfying quarter with a strong financial and operating performance. During the quarter, we recovered from the impact of demonetization and the growth in the first two months was strong. However, the momentum was disrupted in June in the run-up to GST implementation. The advertisers reduced ad spends on existing brands and launched fewer products as distribution chain was not fully prepared for seamless transition to the new regime. Despite the challenge, our domestic ad revenue grew by 7%. Notwithstanding the short-term impact, we believe that GST will aid the advertising spends in the long-run.
Our domestic subscription revenue, adjusted for the sale of sports business, grew by 14.5%. While there is still uncertainty regarding the implementation of the new tariff regulation due to pending litigations, we are confident of driving the subscription business on the back of the strong competitive positions of our channels in the key genres.
We have also acquired the balance 49% stake in India Webportal (IWPL), which is the third ranked online content publisher in the country. It operates a suite of websites focusing on different genres including news, sports and entertainment. Being one of the fastest growing digital networks, it gives us an opportunity to reach and understand digital consumers through its various offerings. The acquisition is part of our strategy to strengthen the digital presence.”added Punit
Q1FY18 Highlights:
- The acquisition of Reliance Broadcast Network Ltd (RBNL) which includes two channels – BIG Magic and BIG Ganga, has been completed. Its financial performance has been consolidated in the Company’s Q1FY18 results.
- Advertising revenue for the quarter was Rs. 9,665 million. Adjusted for the sale of sports business and consolidation of RBNL, domestic advertising revenue grew by 6.9% to Rs. 8,688 million while international advertising revenue was Rs. 578 million.
- Subscription revenue for the quarter was Rs. 4,791 million. Adjusted for the sale of sports business, domestic subscription revenue grew by 14.5% to Rs. 3,788 million while international subscription revenue stood at Rs. 1,000 million.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) for the quarter stood at Rs. 4,844 million, registering a growth of 6.9% over Q1FY17. EBITDA margin stood at 31.4%.
- Profit After Tax (PAT) for the quarter grew by 16.0% over Q1FY17 to Rs. 2,516 million. PAT margin was at 16.3%.
