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.
Price hikes are in the offing in the third quarter on the back of Trai cap on inventory because of which all major channels have to reduce inventory to 12 minutes from about 14 minutes.
ul Das chief strategy officer of Zee Entertainment told CNBC-TV18 that the company has outperformed overall ad revenue growth in the industry, it was up18.5 percent at Rs 530 crore year-on-year. He further informed that there are chances to see redistribution of ad revenues going forward.
Atul Das, chief strategy officer, Zee Entertainment explains on CNBC-TV18, after the announcement of the company‘s results, that the growth in advertising and subscription revenues have significantly contributed to the increase in overall revenues for the quarter.
Atul Das, Chief Strategy Officer of Zee Entertainment said the company's advertisement revenue grew by 33.7% and its subscription revenue was up 36% year-on-year. He further added that the advertisement revenue growth continues to be positive.
Zee Entertainment announced its second quarter results for FY12. Atul Das, president of corporate strategy and business development doesn't see any signs of normalcy in the advertising trends in the third quarter of FY12. Moreover, he feels that it would be difficult to achieve double digit advertising in FY12.
Atul Das, president of Corporate Strategy & Business Development at Zee, said that advertising has begun on a weak note this quarter; however, he expects ad spends to improve once festive season commences.
Speaking to CNBC-TV18, Atul Das, of Zee Entertainment attributed the robust quarter to the sports segment of the business.
Zee Entertainment reported a 23% growth in its Q3FY11 net profit, which came in at Rs 155.5 crore as against Rs 126.3 crore in the previous quarter. In an interview with CNBC-TV18, Atul Das, Zee Entertainment gave his perspective on the quarter gone by and the road ahead.