Zee Entertainment Enterprises Ltd (ZEEL) on Tuesday reported 37.87 per cent year-on-year (YoY) decline in consolidated net profit at Rs 349.43 crore for the third quarter ended December 31, 2019.
"The Essel Group-owned firm had posted a consolidated net profit of Rs 562.38 crore in the corresponding quarter last year," ZEEL said in a filing to the Bombay Stock Exchange.
Consolidated revenue of Subhash Chandra-led media company also fell 6 per cent to Rs 2,119.60 crore compared to Rs 2,252.75 crore in the same quarter last year, dented by decline in advertising revenue.
Revenue from advertising segment fell 15.8 per cent to Rs 1,230.80 crore during the December quarter due to tough macro-economic environment. The company said that most of its advertisers were going through a slow-growth period and that led to a cut in advertising spends.
The subscription revenue for the quarter rose 15.4 per cent YoY to Rs 713.70 crore. Domestic subscription revenue jumped 21.7 per cent to Rs 631.70 crore during the quarter under review.
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Ebitda (earnings before interest, tax, depreciation and amortisation) for the quarter declined 25 per cent to Rs 565.80 crore, while margins stood at 27.6 per cent.
ZEEL's total expenditure in Q3FY20 stood at Rs 1,482.90 crore, higher by 5 per cent YoY compared to Q3FYI9.
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Commenting on Q3 earnings, Punit Goenka, Managing Director and CEO, ZEEL, said, "I believe that the worst phase is behind us and we will start seeing an improvement from the next quarter. The proposed changes to the tariff order by TRAI are being challenged in the court and we are awaiting the final verdict. However, I am confident that our strong portfolio of channel across markets will enable us, to navigate any regulatory changes in the most efficient manner."
"We are preparing for the launch of two more channels over the next few months. We also continue to invest in original content for ZEE5, to create a rich content library that will make it a really compelling offering for consumers. These investments will help us grow ahead of the industry once this transient slowdown phase has passed," Goenka said.
Ahead of Q3 results, shares of Zee Entertainment closed Tuesday's trade at Rs 283.95 apiece, up 4.86 per cent, on the BSE.
By Chitranjan Kumar