BENGALURU: The Subhash Chandra led Zee Entertainment Enterprises Limited reported 17.9 percent year-on year (y-o-y) growth in operating revenue at Rs 2,166.77 crore for the quarter ended 31 December 2018 (Q3 2019, quarter or period under review) as compared to the Rs 1,838.07 crore for the corresponding year ago quarter Q3 2018. EBITDA for the quarter under review increased 26.9 percent y-o-y to Rs 754.29 crore from Rs 594.42 crore.

Growth in numbers was driven by 21.7 percent and 23.3 percent y-o-y in advertisement and subscription revenues respectively. The company reported ad revenue for Q3 2019 at Rs 1,462.57 crore as compared to Rs 1,202.02 crore in Q2 2018. Subscription revenue for the period under review was Rs 618.48 crore as compared to Rs 501.69 crore in the corresponding year ago quarter. Zeel says that domestic subscription revenue grew by 28.6  y-o-y to Rs 519.2 crore. International subscription revenue for Q3 2019 was Rs 99.3 crore.

The company reported 50.6 percent growth in profit after tax (PAT) and 49.2 percent higher total comprehensive income (TCI) for Q3 2019 as compared to Q3 2018. PAT in Q2 019 was Rs 562.76 crore as compared to Rs 373.77 crore in Q3 2018. TCI for Q3 2019 was Rs 475.97 crore as compared to Rs 319.10 crore.

Zeel chairman Chandra said, "India is poised to remain one of the fastest growing economies in the world. Decline in crude oil prices and rationalization of GST rates will further boost the economy and help maintain the growth momentum in consumption. Even in M&E space, content consumption is growing at a brisk pace across mediums. This trend along with macroeconomic tailwinds will drive growth in both advertising and subscription revenues. We have delivered yet another quarter of strong performance across all our businesses. ZEE5 is scaling up in line with our expectations and is on course to become India's number one digital entertainment platform.”

Zeel MD and CEO Punit Goenka said, "I am really pleased with our performance this quarter which further strengthens our position as India's leading entertainment content company. While our television business continues to consolidate its number one position, ZEE5 is quickly establishing itself as one of the leading digital entertainment platforms in the country. ZEE5 has already become the biggest producer of Indian content amongst the digital platforms and

the content offering will multiply going forward. Our expanding list of partnerships with telecom operators and players in the digital eco-system, coupled with innovation in pricing, will make ZEE5 accessible to a wider audience.

With the launch of our Malayalam channel, Zee Keralam, ZEEL now has the widest footprint in country in terms of the languages covered. It will help us further consolidate our network share.

Advertising outlook for the industry looks upbeat and we aim to outpace the industry growth on the back of our growing network share. After much delay, TRAI's tariff order is now set to be implemented across the country next month. I reiterate that this is a positive step for the industry in the long term and will be beneficial for everyone. While it will take some time for the new system to settle, we are working with all our partners for its smooth implementation."  added Goenka.

Let us look at the other numbers reported by Zeel

Total expenses in Q3 2019 increased 7.7 percent y-o-y to Rs 1,441.82 crore from Rs 1,338.38 crore. Employee benefit expense increased 19.4 percent y-o-y in Q3 2019 to Rs 183.38 crore from Rs 153.54 crore in Q3 2018. Operational cost in the quarter under review increased 18.6 percent y-o-y to Rs 797.81 crore from Rs 672.98 crore in Q3 2018.

Finance costs increased y-o-y in Q3 2019 to Rs 5.52 crore from Rs 2.36 crore during the corresponding period of the previous year. Other expenses reduced 3.1 percent y-o-y in quarter under review to Rs 230.24 crore from Rs 237.51 crore in Q3 2018.

The company benefitted from fair value gain on financial instruments at fair value through profit and loss for Q3 2019 at Rs 37.64 crore as compared to a fair value loss of Rs 41.92 crore in Q3 2018.