Zee Entertainment Q2 net profit rises led by strong ad revenue

Zee Entertainment Q2 net profit rises led by strong ad revenue

Zee Entertainment Enterprises on Thursday reported a 187% year-on-year rise in consolidated net profit to Rs. 270.2 crore.
The broadcasting company reported a 15% on-year growth in consolidated revenue from operations to Rs. 1,978.8 crore for the reported quarter.
The company’s revenues from subscription declined 1.5% on-year to Rs. 788.5 crore while sales from advertisement grew 20.7% to Rs. 1,089 crore.
The company’s operating performance in the quarter was also underwhelming as consolidated operating profit rose 31.4% on-year to Rs. 412.1 crore.

Zee Entertainment’s consolidated operating margin in the quarter shrank 280 basis points year-on-year to 20.8% as operational costs and advertisement expenses rose sharply in the quarter.
However, the company‘a market share improved to 17.7% in the reported quarter from 17% in the previous quarter. However, the market share was still lower than the 19% clocked by the company in the year-ago quarter.
Zee Entertainment saw a sequential addition of 13 million monthly average users addition to 93.2 million.
Big bang launches planned across markets in Q3 to continue upward momentum in network share.

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