ZEE drops as subscription revenue slips in Q3

Zee Entertainment Enterprises lost 2.89% to Rs 379.40 at 14:41 IST on BSE after the company's total subscription revenues fell 2.3% to Rs 446.10 crore in Q3 December 2014 over Q3 December 2013.

Meanwhile, the BSE Sensex was up 82.41 points or 0.29% at 28,867.08

On BSE, so far 6.48 lakh shares were traded in the counter, compared with an average volume of 88,675 shares in the past one quarter.

The stock was volatile. The stock hit a high of Rs 400 and low of Rs 376.50 so far during the day. The stock hit a 52-week high of Rs 401.60 on 25 November 2014. The stock hit a 52-week low of Rs 254.70 on 30 January 2014.

The stock had underperformed the market over the past one month till 20 January 2015, rising 2.86% compared with Sensex's 5.16% rise. The scrip, however, outperformed the market in past one quarter, surging 18.5% as against Sensex's 8.91% rise.

The large-cap company has an equity capital of Rs 96.04 crore. Face value per share is Re 1.

Shares of Zee Entertainment Enterprises (ZEE) had witnessed a pre-result rally. From a low of Rs 359.90 on 14 January 2015, the stock had jumped 8.58%% in four trading sessions to settle at Rs 390.80 yesterday, 20 January 2015.

ZEE's consolidated net profit rose 44.48% to Rs 308.61 crore on 17.73% rise in total income to Rs 1443.90 crore in Q3 December 2014 over Q3 December 2013. The Q3 result was announced during market hours today, 21 January 2015.

The company's consolidated operating profit (EBITDA) rose 21.5% to Rs 353.30 crore in Q3 December 2014 over Q3 December 2013. EBITDA (earnings before interest, taxes, depreciation and amortization) margin stood at 25.9% and net profit margin stood at 22.5% in Q3 December 2014.

Advertising revenue rose 8.5% to Rs 742.60 crore in Q3 December 2014 over Q3 December 2013. Excluding sports business which is event led, advertising revenues growth is in mid-to-high teens. Total subscription revenues fell 2.3% to Rs 446.10 crore in Q3 December 2014 over Q3 December 2013. The underlying growth in domestic subscription revenue is in low double digits and international subscription revenue is in high teens in rupee terms. Revenue from other sales and services surged 267.9% to Rs 175 crore in Q3 December 2014 over Q3 December 2013.

Commenting on the results, Subhash Chandra, chairman of Zee Entertainment Enterprises said, Our quarterly performance reflects the investments that ZEE is making to grow its business and market share. The viewership market share has been strong, which has helped us to continue to grow ahead of the market. We will continue to pursue growth opportunities; which would enhance long term shareholder value. We have a strong balance sheet and we are confident that we would benefit from the growth opportunities ahead of us.

Zee Entertainment Enterprises (ZEE) is one of India's leading television, media and entertainment companies.

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