BENGALURU: The Essel Group’s news network Zee Media Corporation Limited (ZMCL) reported 9.7 percent growth in operating revenue on the back of a 16.7 percent hike in advertising revenue for the quarter ended 30 June 2017 (Q1-18, current quarter) as compared to the corresponding year ago quarter (y-o-y). The company’s subscription revenue however declined 29 percent y-o-y. ZMCL’s operating revenue in the current quarter was Rs 1,144.53 million and Rs 1,043.23 million in Q1-17. Total Income in Q1-18 was also 9.7 percent higher y-o-y at Rs1,176.43 million as compared to Rs1,072.41 million.

Operating profit (EBIDTA) in the current quarter increased 14.4 percent to Rs 252.17 million as compared to Rs 220.43 million in the corresponding year ago quarter. Profit after tax (PAT) in Q1-18 was however 25 percent lower at Rs 73.8 million as compared to Rs 98.5 million in Q1-17, partly affected by the share of loss of Rs 23.46 million by ZMCL’s associates and a rise in expenses.

Total expenditure in Q1-18 increased 11.3 percent to Rs 1,027.27 million from Rs 922.85 million in Q1-17.

Operating costs increased 26.4 percent y-o-y to Rs 198.26 million as compared to Rs 156.90 million. Finance costs in the current quarter increased 57.3 percent y-o-y to Rs 51.15 million from Rs 32.51 million in the corresponding year ago quarter.

Employee benefit expense in Q1-18 increased 18.2 percent to Rs 293.97 million from Rs 248.64 million in Q1-17.

The company spent 42.1 percent less towards Advertising and Publicity expense in the current quarter at Rs 30.97 million as compared to Rs 53.49 million in Q1-17. ZMCL’s marketing, distribution and business promotion expense in Q1-18 increased 1.33 percent y-o-y o Rs 130.96 million as compared to Rs129.24 million. Other expense in the current quarter increased 1.56 percent y-o-y o Rs 238.20 million as compared to Rs 234.53.