ZEE Posts A Stupendous Result For Q1FY14

Zee Entertainment Enterprises (ZEEL) today posted amazing numbers for its June ended quarter of fiscal 2014. The company's total operating income jumped by 15% to Rs 973 crore on a YoY basis. It primarily includes revenues from advertising activities and the subscription income, which grew by 18% to Rs 530 crore and 16% to Rs 424 crore respectively. The revenue from domestic subscription stood at Rs 316.8 crore and Rs 107 crore for international subscription.

Due to an increase in the operating expenses and other expenses, the total expenditure for the said period increased to Rs 682 crore over Rs 610 crore in Q1FY13. However, the total expenses declined as a percentage of revenues on a yearly basis.

The EBITDA for ZEE jumped to Rs 291.5 crore by showing growth of 25% in Q1FY14 against Rs 233 crore in Q1FY13. The other income also reported good growth of Rs 42 crore on a YoY basis to Rs 72 crore in the June 2013 quarter.

Interestingly, ZEE's net profit boosted by 42% to stand at Rs 225 crore, due to a 139% increase in other income. Its margins too enlarged in this period, as it operating margin rose by 228 basis points and net margin by 432 basis points on a YoY basis.

While commenting on ZEE's performance, its Chairman said that the good performance of the company is the result of its investments made for the growth of its business and market share. ZEE's share price closed at a premium of 6% at Rs 260 today.