ZEEL consolidated revenue up by 23% in Q2 FY17 to Rs 16,954 million

Zee Media Bureau

Mumbai: Zee Entertainment Enterprises Limited's consolidated revenues grew by 23.0 percent in Q2FY17 to Rs 16,954 million driven by strong growth in all revenue streams.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) for the quarter was Rs 4,892 million and EBITDA margins stood at 28.9 percent, respectively. ZEE recorded PAT of Rs 2,440 million in Q2FY17 and PAT margin stood at 14.4 percent.

Dr Subhash Chandra, Chairman, ZEEL, stated, “Initial signs of uptick in Indian economy are already visible and we should see improvement in economic growth in quarters ahead. Normal monsoon in 2016 after a gap of two years should spur the rural growth. The passage of GST bill is a positive step and would help Indian economy.

Commenting on the results of the Company, Dr Chandra added, “ZEE reported well-rounded strong growth in revenues during the first half of fiscal 2017. While we continue to add new channels to our domestic and international broadcasting businesses our new initiatives in movies, music, events and digital are taking shape and have started contributing to growth.”

Punit Goenka, Managing Director and Chief Executive Officer, ZEEL, commented, “At ZEE we are pleased to deliver yet another quarter of satisfying business and financial performance. Our advertising revenues continue to grow ahead of market on the back of improving viewership share and better monetization of our bouquet. Growth in domestic subscription revenue was aided by catch up revenue in Q2.”

“Telecom Regulatory Authority of India (TRAI) has released draft regulations for broadcasting services and interconnection arrangement to increase transparency in content pricing and payment of carriage and to allow consumers to choose channels. These draft regulations are steps in the right direction and propose a host of changes to the existing system. Although it still remains to be seen what form the final regulation will take, we hope that improved transparency will enable various stakeholders to get their rightful share in subscription revenues,” he said.

“The first half of fiscal 2017 has been strong for us. Growth in advertisement spends has held up so far. Moderation in FMCG and e-commerce spends might have some impact on industry growth in the coming quarters. On the positive side increasing competition in telecom business would help ad spend growth. GST roll-out in the coming year could boost advertising spends as a part of potential savings in tax outgo might be reinvested,” he added.