Moneycontrol BureauMedia conglomerate Zee Entertainment Enterprises' profit during July-September quarter increased 27 percent year-on-year to Rs 238.4 crore on strong revenue as well as operational performance but impacted by lower other income and higher tax cost.
Revenue during the quarter grew by 23 percent to Rs 1,695.4 crore on yearly basis, driven by better-than-expected advertising and subscription revenue growth of 15.7 percent and 21.7 percent, respectively.
"Advertising revenue continued to grow ahead of market on the back of improving viewership share and better monetisation of bouquet and growth in domestic subscription revenue was aided by catch up revenue in Q2," Punit Goenka, MD and CEO said.
EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 36.4 percent to Rs 489.2 crore and margin expanded by 290 basis points to 28.9 percent compared with year-ago period.
Numbers except bottomline beat analysts' expectations. Profit was estimated at Rs 305 crore on revenue of Rs 1,649 crore for the quarter. Operating profit was expected to be at Rs 464 crore and margin at 28.4 percent. Analysts expected advertising revenue growth at 15 percent and subscription at 21.7 percent.
During the quarter, other income declined 27.3 percent to Rs 43.23 crore whereas tax expenses jumped 45 percent to Rs 163.44 crore compared with year-ago period.
Zee Entertainment launched five new channels in domestic and international markets in Q2.
At 13:33 hours IST, the stock was quoting at Rs 512.50, up Rs 0.35, or 0.07 percent on the BSE.
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