Zee Entertainment dips 4% as Q3 profit plunges on low ad revenue, high cost

Shares of Zee Entertainment Enterprises skid 4 per cent to Rs 272.45 on the BSE on Wednesday after the broadcasting company put up a weak December quarter (Q3FY20) show. It’s profit before tax (PBT) declined 37 per cent to Rs 510.8 crore, coupled with a cut of 16 per cent in advertising revenue at Rs 1,230.8 crore.

For the quarter under review, the company posted a consolidated net profit of Rs 349.4 crore, as against profit of Rs 562.4 crore in the corresponding quarter of the previous fiscal. Operating revenue, meanwhile, came in at Rs 2,048.7 crore, down 5.5 per cent from Rs 2,166.8 crore in the year ago period. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 565.8 crore with an EBITDA margin of 27.6 per cent.