Zee in spotlight after stellar Q4 financial performance

Zee Entertainment Enterprises gained 4.47% to Rs 518.50 at 15:18 IST on BSE after consolidated net profit surged 568.47% to Rs 1514.22 crore on 1.51% growth in total income to Rs 1582.89 crore in Q4 March 2017 over Q4 March 2016.

The result was announced during market hours today, 10 May 2017.

Meanwhile, the S&P BSE Sensex was up 325.51 points or 1.09% at 30,258.76.

On the BSE, 2.74 lakh shares were traded on the counter so far as against the average daily volumes of 82,892 shares in the past one quarter. The stock had hit a high of Rs 521.50 and a low of Rs 496.30 so far during the day. The stock had hit a 52-week high of Rs 588.80 on 3 October 2016 and a 52-week low of Rs 405 on 9 May 2016.

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

Zee Entertainment Enterprises' Q4 March 2017 consolidated net profit was boosted by an exceptional income of Rs 1223.44 crore on account of sale of Sports Broadcasting Business to Sony Pictures Network.

Advertising revenue for Q4 March 2017 was Rs 846.90 crore. Domestic advertising revenue grew by 8.1% to Rs 794.40 crore while international advertising revenue stood at Rs 52.50 crore.

Subscription revenue fell 6.1% to Rs 558 crore in Q4 March 2017 over Q4 March 2016 due to high base on account of catch-up revenues in Q4 March 2016. Domestic subscription revenue stood at Rs 455.40 crore while international subscription revenue stood at Rs 102.60 crore.

Earnings before interest, tax, depreciation and amortization (EBITDA) rose 14% to Rs 468.70 crore in Q4 March 2017 over Q4 March 2016. EBITDA margin stood at 30.7%.

Zee Entertainment Enterprises said that after a couple of quarters of weakness, advertising growth appears to be back on track. The GST roll-out could boost advertising spends as a part of potential tax savings might be reinvested. While there is uncertainty regarding the implementation of the new tariff regulation due to pending litigations, the company has published the prices of its channels and bouquets. The company is confident that with the strong competitive position of channels in every genre, it will be able to drive subscription business.

Zee Entertainment Enterprises is one of India's leading television media and entertainment companies. The company and its affiliate companies have leading presence across the media value chain including television broadcasting, cable distribution, direct-to-home satellite services, digital media and print media amongst others.

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