Its domestic ad revenue grew by 1.4% to Rs 1169 crore compared to Rs 1152.6 crore. ZEEL feels the company said that the domestic advertising revenue growth was impacted by the tough macro-economic environment which had a negative effect on demand across categories. It further stated that the impact on growth due to the conversion of two channels from FTA to pay in March continued during the quarter.
ZEEL stated: “As the quarter progressed, advertising spends witnessed a gradual improvement helped by the onset of the festive season. The full-year advertising growth will depend on the sustenance of this trend post the festive season.”
Its consolidated advertising revenue grew by 1.2% YoY to Rs. 1224.7 crore compared to Rs 1210.6 crore. The group’s ad revenue growth was tepid, the domestic subscription revenue grew by 26.8% YoY to Rs 645.9 crore while the international subscription revenue declined by 21.5% YoY to Rs 77.6 crore. ZEEL’s consolidated subscription revenue grew by 19% to Rs. 723.5 crore during the quarter.
ZEEL’s net profit jumped 6.9% to Rs 413.2 crore. EBITDA for the quarter grew by 2.5% to Rs. 692.9 crore and EBITDA margin stood at 32.7%. Total revenue for the quarter was up by 7.4% at Rs. 2122 crore driven by the strong performance of domestic broadcast and digital businesses.
ZEEL MD and CEO Punit Goenka commented, “ZEEL’s entertainment portfolio continues to grow from strength to strength across all formats and maintained its leading position. Our television network has emerged stronger post the implementation of tariff order on the back of a strong customer connect and brand pull of its channels. ZEE5 continued to gain traction across audience segments and markets, driven by its compelling content library and expanding list of partnerships across the digital eco-system.”
In this Q, ZEEL’s International business revenue was Rs. 208.2 crore. The advertising and subscription revenues declined by 4.0% YoY and 21.5% YoY. Other sales and services revenue stood at Rs. 74.9 crore. Its total expenditure in Q2FY20 stood at Rs. 1429.1 crore, higher by 9.9% YoY compared to Q2FY19.