ZEE Entertainment posts 27.3% increase in earnings for FY17 | Major Businesses | Business
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Indian media conglomerate Zee Entertainment Enterprises (ZEEL) has posted a growth of 27.3% in earnings before interest, tax, depreciation and amortisation (EBITDA) for the financial year 2017 (FY17).

ZEEL Punit Goenka MD CEO ZEELEBITDA for the fourth quarter stood at INR4,687 million, registering a growth of 14% over the same period in 2016, the company said.

ZEEL’s advertising and subscription revenues for FY2017 grew by 9.2% and 10% respectively. Advertising revenue for the quarter ending 31 March 2017 was INR8,469 million. Of this, domestic advertising revenue grew by 8.1% to INR7,944 million while international advertising revenue stood at INR525million.

Subscription revenue for the quarter was at INR5,580 million, a decline of 6.1% year-on-year, which was attributed to the high base on account of catch-up revenues in the fourth quarter of financial year 2016. Domestic subscription revenue stood at INR4,554 million, while international subscription revenue was INR1,026 million.

The first phase of the sale of ZEEL’s sports business to Sony Pictures Network has also been completed and US$330 million has been received, the company confirmed when announcing its financial results.

“The Indian economy has exhibited strong resilience with GDP growth of 7% in Q3FY17 despite demonetisation of high value currency. Implementation of Goods and Services Tax (GST) would unify India into one market,” said Subhash Chandra, chairman, ZEEL.

“This along with other reforms and push on infrastructure would accelerate growth from already healthy levels. A normal monsoon as forecasted by IMD could give a fillip to rural consumption.”

Punit Goenka (pictured), MD & CEO, ZEEL, added: “We are happy to deliver yet another quarter of strong financial performance despite the difficult economic environment. Our domestic advertising revenue grew by 8.1% despite the impact of demonetisation.

“After a couple of quarters of weakness, advertising growth appears to be back on track. The GST roll-out could boost advertising spends as a part of potential tax savings might be reinvested. While there is uncertainty regarding the implementation of the new tariff regulation due to pending litigations, we have published the prices of our channels and bouquets. We are confident that with the strong competitive position of our channels in every genre, we will be able to drive subscription business.”

Punit said ZEEL’s focus now is to strengthen its national and regional TV channel portfolio, as well as growing new businesses.

ZEEL said its non-sports viewership share during the fourth quarter of 2017 was 16.1%. Its two subscription based Hindi general entertainment channels, Zee TV and &tv, had a combined share of 21% amongst the top seven channels in the genre, while its free-to-air Hindi entertainment channel, Zee Anmol, was ranked third in its genre.

ZEEL claimed leadership in the pay Hindi movie channel market, and exhibited strong performance in its regional channels Zee Marathi, Zee Bangla, Zee Telugu, Zee Kannada, Zee Tamil and Sarthak TV.