Mumbai: Zee Entertainment Enterprises has reported consolidated revenue of Rs. 20,487 million for the quarter ended December 31, 2019, the revenue reported was largely in line with industry estimates. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs.5,658 million with an EBITDA margin of 27.6%. PAT for the quarter was Rs. 3,494 million.
ZEEL’s consolidated subscription revenue in Q3 grew by 15.4% to Rs. 7,137 million during the quarter. Domestic subscription revenue grew by 21.7% YoY while the International subscription revenue declined by 17.4% YoY.
The consolidated advertising revenue of ZEEL in Q3 declined by 15.8% YoY to Rs. 12,308 million. Domestic advertising revenues declined by 15.7% YoY to Rs. 11,570 million. Domestic advertising revenue was impacted by the continued slow-down in key consumer sectors.
Considering the weak revenue scenario, ZEEL took measures to control cost during the quarter that resulted in 5.0% YoY increase in total cost, despite 6.2% increase in programming cost.
Punit Goenka, Managing Director and CEO, ZEEL, commented, “Third quarter is normally a strong growth period for us, however, the tough macro-economic environment led to a decline in our ad revenues. Most of our advertisers are going through a slow-growth period and that has led to a cut in advertising spends. I believe that the worst phase is behind us and we will start seeing an improvement from the next quarter. The proposed changes to the tariff order by TRAI are being challenged in the court and we are awaiting the final verdict. However, I am confident that our strong portfolio of channels across markets will enable us to navigate any regulatory changes in the most efficient manner.
Despite the slowdown, we continue to make investments in businesses where we see potential for growth. Working with our strategy to entrench ourselves deeper into the regional markets, we have launched 3 regional channels that will make our content more accessible to audience across the country. India’s first Punjabi GEC will surely help further strengthen our viewership share and brand in the north Indian markets. With the addition of two new regional movie channels, we now have the biggest movie channel portfolio in the country. We are preparing for the launch of two more channels over the next few months. We also continue to invest in original content for ZEE5, to create a rich content library that will make it a really compelling offering for consumers. These investments will help us grow ahead of the industry once this transient slowdown phase has passed.” added Goenka
Q3FY20 HIGHLIGHTS:
- Total revenue for the quarter was Rs. 20,487 million, decline of 5.5% YoY.
- Advertising revenue for the quarter was Rs. 12,308 million, decline of 15.8% YoY. Domestic advertising revenue declined by 15.7% YoY to Rs. 11,570 million. International advertising revenue for the quarter was Rs. 738 million.
- Subscription revenue for the quarter was Rs. 7,137 million, growth of 15.4% YoY. Domestic subscription revenue grew by 21.7% YoY to Rs. 6,317 million. International subscription revenue was Rs. 820 million.
- EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) for the quarter declined by 25.0% to Rs. 5,658 million and EBITDA margin stood at 27.6%.
- ZEE5 recorded a peak DAU (Daily Active User) base of 11.4 mn in the month of December.
- ZEEL’s television network had an all-India viewership share of 18.2% during the quarter.
- 3 channels – Zee Punjabi, Zee Thirai and Zee Biskope, launched in the month of January.
