Zee Entertainment Enterprises Ltd. on Thursday, November 11 reported a surge of 187 percent year-on-year in consolidated net profits for the second quarter of the current fiscal year. The company posted a consolidated net profit of Rs 270.2 crores for the quarter ending September 30 as compared to the net profit of Rs 94 crore it had reported in the corresponding quarter last year.
In a regulatory filing, ZEEL also disclosed a 15 percent on-year growth in consolidated operational revenue at Rs 1,978.8 crore for the July-September quarter against ₹1,722 crores in the same year-ago period. Meanwhile, the broadcasting company’s rise in consolidated operating profits remained lacklustre, falling short of market expectations and coming in at Rs 412.1 crore, an increase of 31.4 percent year-on-year.
The operating margin of ZEEL in the quarter under review also declined 280 base points year-on-year to 20.8 percent. The company attributed this decline to high operational costs and advertisement expenses incurred during the period. ZEEL, in the regulatory filing, stated that COVID-19 affected the company’s performance during the first half of the quarter under review. However, its domestic advertisement revenues grew year on year by 20.1 percent, experiencing a sequential rise of 18.9 percent.
The recovery in revenue generation from advertisements also resulted in Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) increasing 19.8 percent sequentially for the July-September quarter.
Moreover, Zee Entertainment reported a sequential gain of 13 million monthly average users additions to 93.2 million in the second quarter of FY22. In the filing, the company revealed its plans for big launches across markets in the October-December quarter to further maintain its upward momentum in the network share.
The broadcasting company also noted that its market share widened to 17.7 percent in the reported quarter from 17 percent in the previous quarter. However, it was below the 19 percent market share acquired by the company in the corresponding quarter last year.
ZEEL is currently in the works to release movies across Hindi, Tamil, Telugu, Marathi and Punjabi languages in the second half of the current fiscal year, stating that the opening of cinemas across the country in light of easing COVID-19 restrictions is expected to boost the potential of revenue generation from theatrical releases.