Zee Entertainment drops after weak Q1 results

Zee Entertainment Enterprises lost 1.3% to Rs 296.85 at 14:17 IST on BSE after consolidated net profit declined 6.26% to Rs 210.57 crore on 7.57% growth in total income to Rs 1124.65 crore in Q1 June 2014 over Q1 June 2013.

The Q1 result was announced during market hours today, 18 July 2014.

Meanwhile, the S&P BSE Sensex was up 72.05 points or 0.28% at 25,633.21.

On BSE, so far 2.59 lakh shares were traded in the counter as against average daily volume of 2.64 lakh shares in the past two weeks.

The stock hit a high of Rs 302.70 and a low of Rs 295.40 so far during the day.

Zee Entertainment Enterprises (Zee)'s consolidated operating revenue rose 11.6% to Rs 1085.70 crore in Q1 June 2014 over Q1 June 2013. Operating profit (EBITDA) rose 6.1% to Rs 309.20 crore in Q1 June 2014 over Q1 June 2013.

Zee's advertising revenue rose 17.4% to Rs 622.10 crore in Q1 June 2014 over Q1 June 2013. Once again, Zee has outperformed the industry growth rate which is in low double digits, the company said in a statement.

Mr. Subhash Chandra, Chairman, Zee said that the company expects television media industry to continue on its double-digit growth plan as industry witnessed a positive rub-off effect of election spending on the TV ad spends.

Mr. Chandra added that the company's performance during the quarter reflects the investments that Zee is making to grow its business and market share. This has been accompanied by a strong improvement in the operating performance of the existing businesses, he added.

Mr. Punit Goenka, MD and CEO, Zee said that the company continues to maintain healthy EBITDA margins in its businesses. EBITDA margins in its existing businesses have expanded, even as the company continues to invest in new businesses, Goenka added.

Speaking about the outlook for the business, Mr. Goenka said that the rollout of digitization, even though with some delays, is a positive development for the industry and will provide new growth opportunities throughout the television media value chain. Advertising spends on television are expected to grow in healthy double digits over next many years, Goenka said. Rollout of BARC and change in advertising currency from CPRP to CPT is expected to give it a positive fillip, he added. Development and effective monetization of newer avenues to reach the consumer is one of the company's focus areas, he further said. Creation and acquisition of excellent quality content remains core to the company's business and it continues to channelize investments to strengthen this core, Mr. Goenka said.

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

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