Moneycontrol Bureau
Zee Entertainment Enterprises’ third quarter revenues rose 26.6 percent year-on-year to Rs 1188 crore, driven by a strong growth in advertisement revenues and a healthy increase in subscription revenues. However, a 32.5 percent rise in expenditure squeezed margins and limited Y-o-Y growth in net profit to 10.5 percent to Rs 213.6 crore. Operating margins for the quarter fell to 24.5 percent from 27.8 percent.
The company attributed the pressure on margins to losses in the sports business due to a “heavy event calendar.”
Advertising revenues were up 34.3 percent to Rs 684.3 crore and subscription revenues by 11.4 percent to Rs 456.5 crore. Of total subscription revenues, domestic accounted for Rs 322.2 crore or 71 percent.
Excluding sports, advertising growth was above 20 percent, higher than the industry growth rate, the company said.
“The network shares are on an uptrend, buoyed with the addition of new channels. Our investments in the sports business continued during the quarter,” said Subhash Chandra, Chairman, Zee in the earnings release, adding, “we also look to expand our portfolio to take advantage of the growth opportunities ahead.”
For full earnings release, click: http://t.in.com/dFtc
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