Strong growth in base biz powers Zee Entertainment's show in Sep quarter

Despite pressure, margins much ahead of estimates

Ram Prasad Sahu 

Worries about the higher scale of investments in the digital vertical taking a toll on margins were put to rest, at least in the September quarter, as Zee Entertainment reported better-than-expected financials. Aided by strong base business growth, operating profit margins came in at 34 per cent, up 300 basis points as compared to the year-ago number.

Analysts had expected the number to be in the 30-31 per cent mark. Profit at the operating level was up 37 per cent, despite the continued high programming costs that were up 25 per cent year-on-year. The cost increase was largely due ...

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First Published: Thu, October 11 2018. 01:44 IST