Zee Entertainment’s Second Quarter Profit Falls Short Of Analyst Estimate
Zee Entertainment second quarter sales, margins improve
Zee Entertainment Ltd. missed analyst estimates in the July to September quarter with profits growing to Rs 238 crore from Rs 188 crore in the same quarter last year. Analysts surveyed by Bloomberg had estimated the bottomline at Rs 308 crore.
Total income from operations stood at Rs 1,696 crore as against Rs 1,378 crore in the year ago period, the company said in its filing to the exchanges, beating analyst estimate of Rs 1,650 crore.
Earnings before interest, tax, depreciation and amortisation stood at Rs 489.22 crore compared to Rs 453.15 crore in the previous year. EBITDA margins for the company improved 282 basis points to 28.85 percent compared to 26.01 percent in the year ago period.
Segmental Revenue
- Advertising revenues stood at Rs 959.2 crore, up 15.7 percent year-on-year.
- Subscription revenues stood at Rs 583.3 crore, up 21.7 percent year-on-year.
Punit Goenka, managing director and CEO of Zee Entertainment said that the company has seen a strong first half in financial year 2016-17, while expressing optimism over the rollout of GST and its impact going ahead.
GST rollout in the coming year could boost advertising spends as a part of potential savings in tax outgo might be reinvested.Punit Goenka, Managing Director and CEO, Zee Entertainment
Shares of Zee Entertainment Ltd., were trading lower by 0.3 percent at Rs 510 as of 1:30 p.m on the Bombay Stock Exchange.