Moneycontrol Bureau
Zee Entertainment Enterprises slightly missed street expectations on topline and bottomline front but operational performance was higher than expectations during July-September quarter. Consolidated net profit fell 3.7 percent to Rs 227.6 crore in second quarter of current financial year 2014-15 due to lower subscription revenue and sports division losses. Profit in the year-ago period was Rs 236.3 crore.
Net profit was expected at Rs 235 crore on revenue of Rs 1,160 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Consolidated total income from operations increased marginally to Rs 1,118 crore from Rs 1,101 crore on year-on-year basis. Advertising revenue (excluding sports business) in Q2 increased 7 percent on yearly basis to Rs 625.94 crore while subscription revenue declined over 7 percent to Rs 424.45 crore from Rs 458.12 crore during the same period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 3.5 percent to Rs 321 crore and margin expanded by 50 basis points to 28.7 percent on lower operating cost. Analysts had expected both at Rs 320 crore and 27.5 percent, respectively.
Sports business has reported a loss of Rs 25 crore during the quarter on revenue of Rs 118 crore and the cost in the business was Rs 143 crore.
Meanwhile, Zee said the board of directors today approved re-appointment of Punit Goenka as Managing Director and CEO of the company for a period of 5 years with effect from January 01, 2015.
At 14:42 hours IST, the stock was quoting at Rs 323.30, up Rs 10.45, or 3.34 percent after hitting a 52-week high of Rs 331.20 on the BSE.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
