Zee Entertainment firms up on good quarterly numbers

Zee Entertainment Enterprises rose 1.17% to Rs 379.05 at 11:40 IST on BSE after the company announced good Q1 results during trading hours today, 15 July 2015.

Meanwhile, the BSE Sensex was up 233.16 points, or 0.83%, to 28,166.06.

On BSE, so far 2.35 lakh shares were traded in the counter, compared with an average volume of 3.97 lakh shares in the past one quarter.

The stock hit a high of Rs 385.70 and a low of Rs 374.65 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 265.25 on 14 August 2014.

The stock had outperformed the market over the past one month till 14 July 2015, rising 12.49% compared with 5.71% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 8.12% as against Sensex's 3.83% fall.

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

On a consolidated basis, Zee Entertainment Enterprises' (Zee) net profit rose 15.76% to Rs 243.76 crore on 28.68% increase in total income to Rs 1407.84 crore in Q1 June 2015 over Q1 June 2014.

Zee said its advertising revenues rose 25.4% to Rs 779.90 crore in Q1 June 2015 over Q1 June 2014. Its subscription revenues rose 12.2% to Rs 462.50 crore in Q1 June 2015 over Q1 June 2014. During the quarter, domestic subscription revenues stood at Rs 368 crore while international subscription revenues stood at Rs 94.50 crore. The company's consolidated operating revenues rose 27% to Rs 1339.90 crore in Q1 June 2015 over Q1 June 2014.

Zee's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 0.7% to Rs 311.20 crore in Q1 June 2015 over Q1 June 2014. The EBITDA margin fell sharply to 23.22% in Q1 June 2015 from 29.29% in Q1 June 2014.

The company's chairman, Subhash Chandra, stated that the company has recorded a satisfactory performance during the first quarter. The company's investments have resulted in organic growth which is in line with the expectations. The company will continue to build its presence in this highly competitive space by creating compelling content across genres and by pursuing new opportunities that will yield long term growth.

Speaking about the outlook of the business, Goenka continued that while competition remains high in the Indian television industry, the company remains true to its values by bringing innovative and high quality entertainment to its audiences. Its efforts are to continue in this journey and entertain audiences all over the world. The company believes that by delivering excellent content it can benefit from monetizing revenues from an advertising and subscription standpoint.

In a separate announcement, the company said that its board has approved in-principle acquisition of 100% equity stake in Sarthak Entertainment, an entity which owns and operates 'Sarthak' a leading Odia language general entertainment channel. The said acquisition shall be from current shareholders of Sarthak Entertainment, subject to requisite regulatory approvals, as an allcash deal at a consideration of maximum of Rs 115 crore, including Rs 15 crore payable in financial year 2017 and 2018, linked to certain performance milestones of the channel.

Zee Entertainment Enterprises is one of India's leading television media and entertainment companies. It is amongst the largest producers and aggregators of Hindi programming in the world, with an extensive library housing over 120,000 hours of television content. With rights to more than 3,500 movie titles from foremost studios and of iconic film stars, Zee houses the world's largest Hindi film library. Through its strong presence worldwide, Zee entertains over 959 million viewers across 169 countries.

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