Shares of Zee Entertainment slipped 4% on Wednesday after the media house reported a 38% fall in consolidated profit to Rs 349.4 crore against Rs 562.4 crore in Q3FY19, on back of decline in advertising revenues.
Company's operating revenue stood at Rs 2,048.7 crore compared with Rs 2,166.8 crore in the year-ago period, registering a decline of 5.5% yearly.
Following the result announcement , shares of Subhash Chandra-led media company fell 4.05% and touched an intraday low of Rs 272.45 on BSE.
Volume-wise, 3.30 lakh and 152 lakh shares were trading on BSE and NSE today. Zee Entertainment stock trades lower than its 5, 20, 50, 100 and 200-day moving averages.
On Tuesday, shares of Zee Entertainment closed at Rs 283.95 apiece, up 4.86% on the BSE.
During the December quarter, revenue from advertising segment fell 15.8% to Rs 1,230.8 crore, while domestic advertisement revenue declined 15.7% to Rs 1,157 crore. The company said most of its advertisers were going through a slow-growth period and that led to a cut in advertising spends.
The subscription revenue for the quarter rose 15.4 per cent YoY to Rs 713.70 crore. Domestic subscription revenue jumped 21.7 per cent to Rs 631.70 crore during the quarter under review.
Operating profit (EBITDA) for the quarter stood at Rs 565.8 crore, down 37% from Rs 754.3 crore recorded in the same quarter previous year, while company's margins stood at 27.6 per cent. ZEEL's total expenditure in Q3FY20 stood at Rs 1,482.90 crore, higher by 5 per cent YoY compared to Q3FYI9.
Edited by Rupa Burman RoyShare Market Live: Sensex climbs 150 points, Nifty above 12,200; Wipro, Infosys, TCS top gainers