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Zee Entertainment declares Q2FY19 results: Strong all-round performance drives growth

Oct 11, 2018

The Board of Directors in its meeting held today has approved and taken on record the unaudited consolidated financial results of Zee Entertainment Enterprises Limited (ZEEL) (BSE: 505537, NSE: ZEEL.EQ) and its subsidiaries for the quarter ended Sep 30, 2018.

For the second quarter of fiscal 2019, ZEEL reported consolidated revenue of Rs. 19,759 million. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs. 6,757 million with an EBITDA margin of 34.2%. PAT for the quarter was Rs. 3,867 million.

Q2FY19 Highlights:

❖ Total revenue for the quarter was Rs. 19,759 million, growth of 24.9% YoY. The growth was driven by the strong performance of our domestic broadcast business and aided by other businesses.
❖ Advertising revenue for the quarter was Rs. 12,106 million, growth of 22.7% YoY. Domestic advertising revenue grew by 23.3% YoY to 11,526 million. International advertising revenue for the quarter was Rs. 580 million.
❖ Subscription revenue for the quarter was Rs. 6,082 million, growth of 21.3% YoY. Domestic subscription revenue grew by 26.0% YoY to Rs. 5,093 million. International subscription revenue was Rs. 989 million.
❖ EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) for the quarter grew by 37.6% to Rs. 6,757 million and EBITDA margin stood at 34.2%.
❖ ZEE5 became the #2 digital entertainment platform with 41.3 million Monthly Active Users (MAU) in Sep'18, 190% growth since Apr'18.
❖ ZEEL continued to be the #1 television entertainment network with an all-India viewership share of 19.9%.
❖ Zee Studios released 2 Hindi movies – Dhadak and Paltan, during the quarter.

Mr. Subhash Chandra, Chairman, ZEEL, commented, “Media and entertainment industry around the world is going through some seminal changes and India is no different. Digital has opened new possibilities for content creators and multiplied the entertainment choices consumers have at their disposal. As India's leading entertainment content company, ZEEL is strongly positioned to capitalize on this new growth opportunity. Our deep understanding of the Indian consumers will be as instrumental in helping us become the leader in the digital space as it was in helping us achieve the leadership in television. In a short time, ZEE5 has received an overwhelming response and I am confident that the platform will continue to scale-up going forward.”

Mr. Punit Goenka, Managing Director & CEO, ZEEL, commented, “ZEE5 is the fastest growing entertainment platform in the country. In a little over six months, it has become the second most popular OTT platform. With a monthly active user base of 41 million and an average daily time spend of 31 minutes, it is growing faster than our expectations. Despite the strong initial performance, I believe it is just the beginning of a long digital journey for us. With a strong pipeline of original content and partnerships with key players in the digital eco-system, we are confident that ZEE5 will become the default entertainment platform for digital audience.

Our broadcast business continues to grow at an impressive pace as evident from the domestic advertising and subscription revenue growth numbers. We continue to consolidate our viewership share which is driving our market leading growth. We believe that our broadcast portfolio has the potential to further increase its market share and the launch of new channel in Kerala will surely help it. The advertising and subscription revenue growth will be aided by the scaling-up of digital business and the growth outlook for both remains strong. This robust performance also gives us room to increase our investments in digital, if required.”

Report By: Corporate Communications Team
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