ZEEL Q1 results show 15% growth, Ad revenue up 25% and Subscription revenue up 12%

Mumbai : Zee Entertainment Enterprises Limited (ZEE) today reported its first quarter fiscal 2016 consolidated revenue of Rs 13,399 million. The consolidated operating profit (EBITDA) for the quarter stood at Rs 3,112 million. PAT for the quarter was Rs 2,423 million. The EBITDA margin for the quarter stood at 23.2% and the PAT margin was 18.1%.

Mr. Subhash Chandra, Chairman, ZEE, stated, “The Indian Media & Entertainment industry is making strides in the economy, backed by rising advertising revenues and consumer payments. 61% of all households in India are now equipped with a television making us the second largest TV viewership market after China. With digitization, subscription revenues in urban and rural areas are growing, resulting in a healthy impact on the industry.”

Commenting on ZEEL Q1 results, Mr. Chandra added, “ZEE has recorded a satisfactory performance during the first quarter. Our investments have resulted in organic growth which is in line with our expectations. We will continue to build ZEE’s presence in this highly competitive space by creating compelling content across genres and by pursuing new opportunities that will yield long term growth.”

Mr. Punit Goenka, Managing Director & Chief Executive Officer, ZEE, commented, “ZEE has started the year on a good note witnessing good returns on the operational front. This clearly highlights the popularity of our programs which continue to attract loyal audiences. We continue to experience growth in both advertising and subscription revenues through the launch of new and innovative programming.”

Speaking about the outlook of the business, Mr. Goenka continued, “While competition remains high in the Indian television industry, we remain true to our values by bringing innovative and high quality entertainment to our audiences. Our efforts are to continue in this journey and entertain audiences all over the world. We believe that by delivering excellent content we can benefit from monetizing revenues from an advertising and subscription standpoint.”

During the quarter, Zee TV was ranked third amongst the Hindi General Entertainment Channels. The channel delivered a weekly average of 9 shows among top 50 shows during the quarter led by the top rated shows like Kumkum Bhagya, Jamai Raja and Jodha Akbar. New shows launched during the quarter were DID Season 5, Fear Files 2 and Tumhi Ho Bandhu Sakha Tumhi. Shows planned for launch in Q2FY16 are Sarojini, Ek Tha Raja Ek Thi Rani and Tashn-e-Ishq.

The newly launched Hindi GEC &tv has picked up viewership share and has been performing well. The popular fiction show, Bhabhiji Ghar Pe Hai has doubled its viewership share in its slot. The Voice, the biggest Non-fiction show of the channel was launched in Q1FY16, leading to further growth in the viewership share

ZEEL Q1 results HIGHLIGHTS:

• Advertising revenues for the quarter were Rs 7,799 million, recording a growth of 25.4% over Q1 FY15.

• Subscription revenues were Rs 4,625 million for the quarter ended June 30, 2015 recording a growth of 12.2% over Q1 FY15. During the quarter, domestic subscription revenues stood at Rs 3,680 million while international subscription revenues stood at Rs 945 million.

• Consolidated operating revenues for the quarter stood at Rs 13,399 million, recording a growth of 27.0% as compared to the corresponding quarter last fiscal.

• Operating profit (EBITDA) for the quarter stood at Rs 3,112 million. EBITDA Margin stood at 23.2%.

• Profit after Tax (PAT) for the quarter ended June 30, 2015 was Rs 2,423 million, recording a growth of 15.4% over Q1 FY15. PAT Margin stood at 18.1%.