 "ZEEL net profit slips 4% in Q2 FY15")
Subhash Chandra promoted Zee Entertainment Enterprises Limited (ZEEL) saw four percent dip in profit after tax for the quarter ended September 30 at Rs 227 croreas compared to Rs 236.3 crore in Q2 FY14.
The company's revenue saw marginal increase of 1.5% year on year at Rs 1117.8 crore (Q2 FY14revenue was Rs 1101.3 crore). The revenue and PAT both fell short of the street estimates which were Rs 1163.7 crore and Rs 283 crorerespectively.
Chandra, chairman, ZEEL, said, "Our performance during the quarter reflects the investments ZEE is makingto grow its business and market share. The viewership market share ison an uptrend which will help us grow ahead of the market."
The company launched one new channel inthe quarter and extended the "&" brand with &pictures HD,a high definition Hindi movie channel.
ZEEL, which runs Chandra's televisionentertainment business through Hindi general entertainment channels,movie channels, English entertainment channels, regional channels andthe sports bouquet under Taj Television Network, saw advertisingrevenues rise by 7.3%, while subscription revenue slipped by7.3%.
Punit Goenka, MD and CEO, ZEEL said,"It has been a mixed quarter as far television industry mediaspends is concerned. Even though the overall economic sentiment waspositive, it translated into increased advertising spends only duringthe fag end of the quarter. Our expectation is that advertisingspends will continue to increase during the rest of the year."
The dip in subscription revenue isattributed to accounting changes employed to accommodate the TelecomRegulatory Authority of India's (TRAI)'s regulation regardingcontent aggregators. As a result, the distribution joint venturebetween Star India and ZEEL - MediaPro was disbanded. Theinternational subscription revenues for the company have been moreseverely affected, falling to Rs 87.2 crore in Q2 FY15 as against Rs123.1 crore last year.
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Domestic subscription revenue in fact increased marginally to Rs 337.3 crore this year, as compared to Rs335 crore in Q2 FY15. The company consolidated its distribution underTaj Television in the quarter gone by.
The company's sports loss stood at Rs143.1 crore, while revenue stood at Rs 118.1 crore. The networktelecast three non-India cricket series - Sri Lanka - South Africa,Pakistan - Sri Lanka and West Indies - Bangladesh along with theCommonwealth Games 2014, US Open and the Tour de France. It alsoannounced the renewal of telecast rights of the WWE in the quartergone by.
Speaking on the outlook for thebusiness, Goenka said, "Though the digitisation deadlines for PhaseIII and Phase IV have been pushed back, timely implementation wouldgreatly benefit the industry. The proposed move to scrapadvertisement cap for FTA (free-to-air) channels will be a welcomestep for the industry. Also, the roll-out of BARC in the near futureis expected to enhance the representativeness of viewership data.Creation and acquisition of excellent quality content remains core toour business and we continue to channelise investments to strengthenthis core. We also continue to explore growth opportunities indomestic markets, international markets and the digital space."