Zee Entertainment Enterprises reported a 38 per cent decline in consolidated net profit at Rs 386 crore for the September quarter due to higher operational costs and tax expenses. Total consolidated income, however, was up 14 per cent at Rs 2,035 crore, on the back of growth in subscription and advertising revenue.

“Our broadcast business continues to grow at an impressive pace as evident from the domestic advertising and subscription revenue growth numbers. We continue to consolidate our viewership share, which is driving our market leading growth,” ZEE Managing Director and CEO Punit Goenka, said in a release.

ZEE5 has become the number two digital entertainment platform with 41.3 million monthly active users (MAU) in September, recording 190 per cent growth since April this year. The company’s advertising revenue during the quarter was Rs 1,210 crore, registering a growth of 22.7 per cent annually.

Of this, domestic advertising revenue grew by 23.3 per cent year-on-year to Rs 1,152.6 crore. International advertising revenue was Rs 58 crore, while subscription revenue for the quarter was Rs 608 crore, a growth of 21.3 per cent.

“The advertising and subscription revenue growth will be aided by the scaling-up of digital business and the growth outlook for both remains strong,” Goenka added.

In the September quarter, the group concluded the second phase of the transaction of sales of its sports broadcasting business to Sony Pictures Networks, resulting in a net gain of Rs 134.61 crore in the audited consolidated financial results for FY 2018.

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