Zee Entertainment PAT falls 10.5% to Rs 274 cr

Other sales and services dip 25%, finance cost, tax expenses rise sharply

Subhash Chandra’s Zee Entertainment Enterprises (ZEEL) has posted a 10.5 per cent dip in profit after tax (PAT) for the quarter ended December 31 at Rs 274.4 crore, compared to Rs 306.5 crore in the year-ago period.

The fall in net profit is due to multiple reasons. The company posted a decrease in other sales and services by almost 25 per cent (Rs 131.4 crore in the quarter under review versus Rs 175 crore a year ago). Other sales and services include syndication sales, film distribution, music distribution revenues, digital business revenues, among others. Additionally, finance cost went up 57.8 per cent and tax expenses increased by 38.4 per cent, leading to fall in PAT.

Revenues for the quarter stood at Rs 1,595.1 crore, up 17 per cent from last year’s Rs 1,363.7 crore. Advertising revenues grew 26.8 per cent at Rs 941.9 crore, significantly higher than the industry average, and subscription revenues expanded 17 per cent at Rs 521.8 crore. Profit before tax was up five per cent at Rs 434.6 crore. Loss from sports broadcast business stood at Rs 15 crore.

Subhash Chandra, chairman of ZEEL, said: “ZEE saw an impressive performance in the third quarter. We grew ahead of the market through improved performance of our existing channels as well as new channels. Our vision is to provide long-term sustainable growth to our shareholders. Our investments continue to provide us with positive results. We will continue to identify and pursue profitable investment opportunities that will enable us to join the ranks of world’s leading media companies and become the first Indian media company to do so.”

Punit Goenka, managing director and chief executive of ZEE, added: “Continuing in line with our robust performance in the previous few quarters, we have witnessed steady growth in the third quarter of FY16 as well. The advertisement market growth continued its upward trajectory this quarter, further aiding our growth while the subscription market witnessed steady growth as well. This quarter saw the rollout of BARC (Broadcast Audience Research Council rating) in rural areas, which demonstrated the strength of our channels in the hinterlands of the country.”

Commenting on the business outlook, Goenka said the main focus would remain on creating innovative and high-quality entertainment that can be delivered to audiences across consumption platforms. “We believe providing excellent content will remain the key for monetising revenues, from both advertising and subscription standpoints. Going forward, we will further enhance our offerings on various platforms,” he added.