India’s giant TV broadcaster Zee Entertainment Enterprises Ltd (ZEEL) reported 3-months net profit (to December 31st) were up an impressive 28.5 per cent, helped by an uplift in ad-revenues of 25.8 per cent for the quarter-year.
Subhash Chandra, Chairman, ZEEL, said, “It is very heartening to see the rebound in the economy after four quarters. The initiatives taken by the government had some short-term impact on the growth, but these measures will strengthen the economy in the long run.”
“Indian M&E sector will be a beneficiary of this growth story as people spend more time and money on consuming entertainment content. ZEEL, with its strong portfolio of entertainment offerings, is well positioned to capitalise on this opportunity.”
Punit Goenka, MD/CEO, ZEEL, said, “We are delighted to deliver a strong operating performance during the quarter. 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. The recent cut in [sales tax] rates across a wide category of products should aid the growth.”
“Our domestic ad revenue growth of 26 per cent is a testimony to the fact that television [growth] continues new digital platform, Zee5, scheduled to be launched in February, will enable us to capture this growth,” Goenka added.