Moneycontrol
Last Updated : Jan 17, 2018 03:54 PM IST | Source: Moneycontrol.com

Zee Entertainment Q3 profit jumps 28%, advertising revenue beats estimates

Subscription revenue declined 15.5 percent to Rs 501.69 crore and other sales & services segment reported 49 percent growth at Rs 134.36 crore YoY.

Indian media conglomerate Zee Entertainment Enterprises has reported a 28.3 percent growth in profit for October-December quarter, with advertising revenue beating analyst expectations on Wednesday.

Consolidated profit during the quarter stood at Rs 321.7 crore (which was below analyst estimates), increased from Rs 250.80 crore in corresponding period.

Revenue from operations increased 12 percent to Rs 1,838.07 crore compared to Rs 1,639.12 crore in same quarter last year, driven by advertising revenue that grew by 25.8 percent to Rs 1,202.02 crore YoY, which both surpassed analyst expectations.

Subscription revenue declined 15.5 percent to Rs 501.69 crore and other sales & services segment reported 49 percent growth at Rs 134.36 crore YoY.

Advertising revenue and domestic subscription revenue growth after adjustment for sports business was 30.4 percent and 7.5 percent YoY, respectively.

"Advertising spends have bounced back strongly and outlook remains encouraging. The recent cut in GST rates across a wide category of products should aid the growth," Punit Goenka, Managing Director & Chief Executive Officer, ZEEL said.

Delayed TRAI tariff regulation does not have any significant impact on full year outlook for subscription growth," he added.

Profit for the quarter was expected at Rs 384 crore on revenue of Rs 1,755 crore and advertising revenue growth was estimated at 17 percent, according to average of estimates of analysts polled by CNBC-TV18.

Consolidated operating profit grew by 24.3 percent year-on-year to Rs 552.5 crore and margin expanded by 299 basis points to 30.1 percent in Q3FY18, which were slightly below analyst estimates of Rs 560 crore and 31.9 percent, respectively.

At 14:52 hours IST, the stock price was quoting at Rs 596.55, down Rs 16.55, or 2.70 percent on the BSE.
First Published on Jan 17, 2018 02:16 pm
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