Moneycontrol Bureau
Zee Entertainment Enterprises has posted a net profit of Rs 250.8 crore in October-December quarter, up 8.6 percent from Rs 230.9 crore in corresponding quarter last fiscal. During the quarter, its revenue was up 3.4 percent at Rs 1639.1 crore compared to Rs 1585.4 crore on annual basis.
According to CNBC-TV18 poll, Zee was expected to see net profit rising 3 percent to Rs 282.62 crore in Q3 while revenue was likely to gain 2 percent at Rs 1622 crore.
EBIDTA in Q3 rose 20.1 percent to Rs 515.8 crore while margin stood at 31.5 percent compared to 27 percent year-on-year.
Advertising revenue was up 3.4 percent at Rs 955.4 crore in Q3 FY17 while subscription revenue grew 13.7 percent at Rs 593.5 crore in year-ago period.
During the quarter, the company got into an agreement with Reliance Broadcast Network to acquire its television broadcasting operations. On conclusion of the transaction, RBNL’s two channels – Big Magic (Hindi GEC) and Big Ganga (Bhojpuri GEC) will form a part of our portfolio along with 4 television broadcasting licenses.
Subhash Chandra, Chairman, ZEEL says, “Government’s decision to demonetise high value currency had an impact on businesses across sectors. Notwithstanding the short term disruption caused by demonetisation, we believe that it is a step in the right direction. Demonetisation along with implementation of GST and push towards cashless economy would help country’s long term growth.”
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