Zee Entertainment Enterprises Ltd on Thursday reported 9% rise in consolidated net profit at Rs 123 crore for the quarter ended September 30, 2023 as strong demand for its movies and a pickup in subscriptions eclipsed a decline in advertisement revenues. It reported consolidated net profit of Rs 113 crore in the year-ago period.
The media firm's total income rose 23% to Rs 2,510 crore in Q2FY24 as against Rs 2,040 crore in Q2FY23. The firm's revenue rose 20% to Rs 2,438 crore in Q2FY24 as compared to Rs 2,024 crore in Q2FY23.
On Thursday, ZEEL's scrip on BSE closed trading 1% higher at Rs 262.8. The company, which owns TV channels including Zee TV and Zee Cinema, posted an 8% rise in its subscription revenue on a year-on-year basis.
Other sales and service revenue rose 201%, helped by higher syndication and strong theatrical performance of its movies including "Gadar 2", even as its domestic advertisement revenue declined 2.1%. Zee's total expenses rose 23% due to higher content costs in movies and investment in ZEE5, its streaming platform.
"TV landscape remains healthy as Zee network gained market share in several key markets. Operating leverage and prudent cost management narrows EBITDA losses. Zee Music Company witnessed 7% QoQ growth on video views and 4.8 million subscribers' addition during quarter on back of new age catalogue," said the firm in a stock exchange filing.
ZEEL's Q2FY24 EBITDA margin increased 580 bps on sequential basis to 13.6% while margins were lower on annual basis "due to increase in content cost and investment in ZEE5".
"Soft advertising environment offset by pickup in subscription revenue post NTO 3.0 and higher syndication and theatrical revenue. While some early pick up in ad spending was witnessed led by FMCG during Q2, overall pace of ad environment recovery continues to be slow. Ad revenue are also impacted by busy cricket season with Asia Cup, ICC World Cup," said the firm.