ZEEL records a growth of 43.5% in FY15 Q3 results

Zee Entertainment Enterprises Limited (ZEEL) recently reported their third quarter fiscal 2015 consolidated revenue of Rs. 1363.7 crore. The consolidated operating profit (EBIDTA) for the quarter stood at Rs. 353.3 crore, recording a growth of 21.5% over corresponding period of previous fiscal.

It recorded a Profit after Tax of Rs. 306.5 crore and a growth of 43.5% as compared to last year.

The Board of Directors in their meeting held unaudited consolidated financial results of ZEEL and its subsidiaries for the quarter ended 31st December, 2014.

Mr. Subhash Chandra, Chairman, ZEEL, stated, “The overall economic sentiment in India continues to remain positive post the formation of the new central government. GDP growth rate for the first held of the fiscal has been a healthy 5.5%. The decline in oil price globally should help in easing pressure on Indian economy in the form of reduced fiscal deficit and lower inflation. The recent rate cut by RBI is indicative of good times to come. The business sentiment has been improving over the past few months. We are hopeful that this improved economic environment is going to lead to sustained growth in the coming years. Media industry would also benefit from the improvement in economic environment. TV ad spends are likely to further improve in the forthcoming quarters.”

Commenting on the results of the company, Mr. Chandra added, “Our quarterly performance reflects the investments that ZEEL is making to grow its business and market share. The viewership market share has been strong, which has helped us to continue to grow ahead of the market. We will continue to pursue growth opportunities, which would enhance long term shareholder value. We have a strong balance sheet and we are confident that we would benefit from the growth opportunities ahead of us.”

Mr. Punit Goenka, Managing Director and Chief Executive Officer, ZEEL, commented, “Television industry had a good quarter as far as ad spends are concerned. The festive season saw robust growth, which moderated slightly post the festive period. We had a good quarterly performance, reflecting the industry wise trend. On the domestic subscription front, we grew in low double digits during the quarter. On a sustained basis, we are growing in the high single digits on domestic subscription revenues. Implementation of digitization in the remaining parts of the country will push the growth momentum further. As a result of our consistent performance, we continue to operate at a healthy operating margin.”

Business Performance:

The last quarter saw the brand makeover. The channel sported an all new brand packaging that resonates the channel’s core proposition of Ummeed. Zee TV recorded a relative share of 17.9% among the top 6 Hindi GECs. The market share was even better during the Prime Time band, where Zee TV recorded a relative share of 20.9%. Ratings per se, the channel has consistently been number three in the genre during the quarter.

ZEE’s Hindi Movie Cluster, Zee Cinema, &Pictures, Zee Classic, Zee Premiere and Zee Action lead the genre with a relative share of 30.8%. Their English entertainment and movies genre – Zee Café and Zee Studio have a share of 15.7% in their genre.

Apart from that, their premium lifestyle channel, Zee Khana Khanaza has a relative share of 36.2% in the food and lifestyle genre.

On the regional front Zee Marathi has recorded amongst the highest relative share of 51.8% among all Marathi GECs. On the other hand we have Zee Bangla with a relative share of 35.7%. We then have Zee Telugu with a relative share of 24.1%, followed by Zee Kannada with a 14.8% share and lastly Zee Tamil with a relative share of 4.8%.

On the Sports front, Zee has done really well with their telecast. Their sports business revenues in the third quarter of FY2015 were Rs. 2476 million, while costs incurred in this quarter were Rs. 274.6 crore.

Zee’s International operations constitute a significant part of the Company’s revenues. They had international subscription revenues of about Rs. 100.7 crore. The consolidated operating revenues for the quarter stood at Rs. 1363.7 crore. The revenue figure is not comparable to corresponding figures of last year owing to changes.

Revenue Streams:

Expenditure: