Zee Entertainment Q1 PAT plunges 95% to Rs 29 cr

Zee Entertainment Enterprises (ZEEL) posted a 95% fall in consolidated net profit to Rs 29.28 crore in Q1 June 2020 as against Rs 529.76 crore in Q1 June 2019.

Consolidated operating revenue for Q1 June 2020 stood at Rs 1,312 crore, falling 34.7% from Rs 2,008 crore in Q1 June 2019. Profit before tax (PBT) slumped 92.24% year-on-year (YoY) to Rs 57.65 crore in Q1 June 2020.

Tax expense declined 87% YoY to Rs 28.37 crore in Q1 June 2020 over Q1 June 2019. EBITDA declined 66.7% YoY to Rs 219.9 crore in Q1 June 2020 over Q1 June 2019. The result was announced after market hours today, 18 August 2020.

ZEEL's advertising revenue tumbled 64.5% to Rs 421.06 crore in Q1 June 2020 from Rs 1,186.71 crore in same period previous year. ZEEL said that despite a sharp increase in viewership across mediums, monetization was really weak in April-May leading to a decline in domestic advertising revenues.

Subscription revenue in quarter ending June 2020 stood at Rs 744.34 crore, registering a rise of 5% from Rs 708.77 crore in quarter ending June 2019. The company said increase in subscription was primarily led by ZEE5 subscription revenue.

Income from other sales and services grew by 30% YoY to Rs 146.63 crore in Q1 June 2020 due to sale of rights of movie to OTT platform.

The company's operating cost fell by nearly 16% to Rs 657.79 crore in Q1 June 2020 as no fresh episodes of existing shows were produced in the first two months, leading to a drop in programming cost.

The company said that the outbreak of the COVID-19 impacted the results of current quarter primarily due to restrictions caused by the COVID-19 on the business activities. Further, the company said that it has taken various steps aimed at augmenting liquidity, conserving cash including various cost saving initiatives, and sale of non-core and other assets.

Shares of ZEEL rose 2.38% at Rs 173.95 on BSE. The scrip traded in the range of Rs 165.30 to Rs 178.85 during the day.

ZEEL is a media and entertainment company engaged in providing broadcasting services.

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