Zee Entertainment posted a consolidated net profit of Rs. 160 crore which rose by 27%. There was a fall in advertising witnessed which has hurt the growth in sales. The consolidated revenue of Zee Entertainment in July-Septmeber was only of 1% and stood at Rs. 718.4 Crore. The Experts had expected Zee Entertainment to post a second quarter net profit of Rs. 141 Crore with revenue of Rs. 735 Crore. The Advertising revenue fell by 4.2% year on year and stood at 394.93 crore whereas the subscription revenue was up by 6.3% and was Rs. 291.04 crore. There were less sporting events in the Zee sport channel in this quarter which brought in lesser advertisements. The weak sentiments in the macro-economic concerns have led to a cautious spending in the overall market spending in the advertisements. Zee has warned of a weak advertising revenue for a year or more which means that the advertising sector could be affected more, this is because the market sentiments are making the corporate cautious.
Though the economic situation in India is far better than other countries which are facing a economic slowdown. The market sentiment in India is still weak and is affecting the expenditure on the advertisements which are facing a deceleration. Zee’s total expenses fell 2% from what it was a year ago and the programming and operating costs were also down by 7% and stood at Rs. 322.38 crore.
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