Zee Entertainment Q3 Net Profit Misses Estimates
Zee Entertainment attributed the slower growth in Q3 to reduced advertising spend.
Zee Entertainment Enterprises Ltd.’s net profit in the quarter ended December failed to meet analyst estimates as advertisers cut spending.
Net profit rose 28.3 percent to Rs 321 crore on a year-on-year basis, the Mumbai-based media company said in its exchange filing. That compares with the Bloomberg consensus estimate of Rs 400.6 crore.
Revenue increased 12 percent to Rs 1,838 crore, compared with the Bloomberg consensus of Rs 1,748.2 crore.
- Advertising revenue rose 30.4 percent to Rs 1,137.3 crore.
- Subscription revenue climbed 7.5 percent to Rs 403.6 crore.
Earnings before interest, tax, depreciation and amortisation increased 24.3 percent to Rs 552.43 crore, missing estimates of Rs 570 crore. Ebitda margin expanded 300 basis points to 30 percent.
The slower growth in the last four quarters was due to specific events which required advertisers to recalibrate spends. As the impact of these factors is now behind us, ad spends have bounced back strongly and outlook remains encouraging.Punit Goenka, Managing Director and Chief Executive Officer, Zee Entertainment
Zee Entertainment will launch its digital platform, Zee5, in February this year, the company release said quoting Chairman Subhash Chandra.
The company’s stock fell as much as 3.15 percent, the most in two months, to Rs 594.05 apiece intraday on the NSE.