ZEE’s television network has emerged stronger post NTO: Punit Goenka
Zee Entertainment Enterprises Limited (ZEEL) has reported consolidated revenue of Rs 21,220 million for the second quarter ended September 30, 2019, a growth of 7.4 per cent YoY. The growth was driven by the strong performance of domestic broadcast and digital businesses.
Subscription revenue for Q2 FY2020 stood at Rs 7,235 million, a growth of 19.0 per cent YoY. Domestic subscription revenue grew by 26.8 per cent YoY to Rs 6,459 million, while international subscription revenue was reported at Rs 776 million.
On the other hand, advertising revenue for the quarter was Rs 12,247 million, a growth of 1.2 per cent YoY. Domestic advertising revenue grew by 1.4 per cent YoY to Rs 11,690 million, while international advertising revenue for the quarter was Rs 557 million.
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) for the quarter grew by 2.5 per cent to Rs 6,929 million, with an EBITDA margin of 32.7 per cent.
Profit after tax (PAT) grew by 6.9 per cent YoY to Rs 4,132 million in Q2 FY2020.
ZEEL’s television network had an all-India viewership share of 18.4 per cent during the quarter.
In the digital space, its OTT platform ZEE5 recorded a peak DAU (Daily Active User) base of 8.9 million in the month of September 2019. A release issued stated that ZEE5 users watched an average of 120 minutes of content on the platform in September 2019. ZEE5 saw the launch of 23 original shows and movies in 5 languages during the quarter. It also launched ad-suite products Ampli5, Ad Vault, Infonomics, Play5 and Wish Box to offer holistic advertising solutions.
Expressing his satisfaction with ZEEL’s performance exhibited during the quarter, Punit Goenka, Managing Director and CEO, ZEEL, commented, “Our entertainment portfolio continues to grow from strength to strength across all formats and maintained its leading position. Our television network has emerged stronger post the implementation of tariff order on the back of a strong customer connect and brand pull of its channels. ZEE5 continued to gain traction across audience segments and markets, driven by its compelling content library and expanding list of partnerships across the digital eco-system.”
Continuing further Goenka said, “This strong operating performance allowed us to deliver industry leading growth in both advertising and subscription despite the tough macro-economic environment. Domestic subscription growth of 27 per cent has reaffirmed the value proposition our television network has built over the years. The impact of tariff order has now largely settled down and has brought increased transparency along with improved monetisation. Our domestic advertising revenue growth, though significantly lower than historical trend, is higher than the industry growth. We have witnessed an improvement in ad spends through the quarter and we believe that the onset of festive season along with measures taken by the government will help revive the consumption growth.”