Tuesday 19 January 2016

Zee Entertainment on the growth path

Zee Entertainment Enterprises Ltd (ZEEL) has posted 17 per cent year-on-year increase in income to Rs1,595 crore for the December quarter, driven largely by higher advertisement revenue.
Advertisement revenue, which accounts for 60 per cent of Zee’s income from operations, grew 27 per cent year-on-year to Rs942 crore, broadly in line with the double-digit growth achieved in the past too.
According to Mihir Modi, Zee’s Chief Finance & Strategy Officer, both higher volumes (aided by the newly launched channel, &TV) and better rates boosted ad revenue.
Subscription revenue, which contributes another third, grew 17 per cent to Rs523 crore. Subscription revenue growth in the December quarter was a few percentage points higher than that seen in the preceding two-three quarters.
Higher income coupled with only a moderate increase in the media content cost pushed up operating profit to Rs430 crore, an increase of 22 per cent compared with the same period last year.
According to Mihir Modi, with a larger proportion of income coming in from the Indian operations compared with the overseas operations (spread across regions such as America, Europe and the Asia-Pacific), tax expenses in the December quarter were higher.
The Indian business faces a relatively higher tax rate. For the 2015-16 fiscal as a whole, however, he is guiding for a lower tax rate.
Sourcehttp://cablequest.org/index.php/news/national-news/item/8448-zee-entertainment-on-the-growth-path

Source: http://cablequest.org/index.php/news/national-news/item/8448-zee-entertainment-on-the-growth-path

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