Media firm Zee Entertainment Enterprises Ltd (ZEEL) on Tuesday reported a 62.56 per cent increase in consolidated net profit at Rs 529.76 crore for the first quarter that ended in June 2019, helped by growth in subscription revenue.
The company had posted a net profit of Rs 325.88 crore in April-June quarter a year ago, ZEEL said in a BSE filing.
Total income during the quarter under review stood at Rs 2,112.03 crore, up 15.93 per cent from Rs 1,821.78 crore in the corresponding quarter of the previous year.
ZEEL's total expenses rose 6.15 per cent to Rs 1,369.99 crore from Rs 1,290.60 crore a year ago.
"We delivered another quarter of strong performance despite the operational challenges faced by the industry due to the implementation of TRAI tariff order. We have witnessed a strong uptake of our channels across markets which is reflected in the 47 per cent growth of our domestic subscription revenues," ZEEL Managing Director and CEO Punit Goenka said.
Subscription revenue was up 36.65 per cent to Rs 708.77 crore as against Rs 518.64 crore in the corresponding quarter last year.
Revenue from advertisement rose 3.55 per cent to Rs 1,186.71 crore as compared with Rs 1,146.01 crore in the year-ago period.
"Domestic advertising growth of 4.2 per cent YoY is considerably lower than the growth in past quarters. This is primarily on account of the decision to convert our two leading FTA (free to air) channels to pay, which significantly impacted the ad growth for the quarter," Goenka said.
ZEEL's International business revenue stood at Rs 160 crore during the quarter.
"The advertising and subscription revenues (international) declined by 7.6 per cent YoY and 9.2 per cent YoY," the company said.
Shares of Zee Entertainment Tuesday closed down 0.66 per cent at Rs 360.95 on the BSE.