Zee Entertainment Enterprises zooms on good second quarter results

Zee Entertainment Enterprises (ZEEL) announced it's Q2 results yesterday. The consolidated revenue of the ZEEL increased by 23.89 per cent to Rs 1385 crore in Q2FY16 as compared to same period in the previous financial year. The company's total expenditure increased by 29.21 per cent to Rs 1030 crore in Q2FY16. Its total expenditure rose mainly due to 28.35 per cent increment in operating expense, 64.6 per cent increment in advertisement and publicity expense during the Q2FY16.

ZEEL's EBITDA increased by 10.67 per cent to Rs 355 crore in Q2FY16 as compared to the same period in previous fiscal year. However, the company's EBITDA margin contracted by 306 basis points to 25.61 per cent in Q2FY16 on yearly basis. Its PBT increased just 0.44 per cent to Rs 359 crore in Q2FY16 on yearly basis as it incurred exceptional expense of Rs 33 crore to acquire minority stake in MirriAD, UK during the quarter. The net profit of  ZEEL increased by 8.72 per cent to Rs 247.4 crore in Q2FY16 as compared to the same period in previous financial year though its tax expense reduced by 62.09 per cent to Rs 112 crore during the quarter. However, the company's net profit margin contracted by 250 basis points to 17.86 per cent during Q2FY16 on yearly basis.

On segmental front, ZEEL's Advertising segment revenue stood at Rs 843. crore , with a growth of 35 per cent during Q2 FY16 on yearly basis. The company's Subscription segment revenue increased by 13 per cent to Rs 479 crore in quarter ended September 30, 2015. Its domestic subscription revenues stood at Rs 375 crore while international subscription revenues stood at Rs 104 crore in Q2FY16.

ZEEL's shareholding pattern indicates that FII holdings expanded by 68 basis points to 48.39 per cent while DII holdings contracted by 18 basis points to 3.53 per cent during Q2FY15. The share price of the company increased by 7.13 per cent in early trades on BSE and is trading at Rs 413.1 on intraday basis.

ZEEL is an India-based media and entertainment company. The Company operates in the Content and Broadcasting segment. It offers content in multiple languages and offers around 36 international channels. ZEEL has a library, housing over 210678 hours of television content. The Company holds rights to approximately 3500 movie titles. Its offerings also include a bouquet of around 33 domestic channels. It has operations across around 169 countries.