The Mumbai-based company reported a 22 per cent increase in consolidated net profit at Rs 217 crore for the quarter ended June 30, 2016.
The company had posted a consolidated net profit of Rs 178 crore in the same period of the previous fiscal.
Total income from operations stood at Rs 1,571.62 crore in the April-June quarter of this fiscal, up 18.46 per cent.
Its advertising revenues rose 19 per cent for the quarter to Rs 912 crore while subscription revenues stood at Rs 528.2 crore, up 14.2 per cent.
Mihir Modi, chief finance and strategy officer at Zee Entertainment Enterprises, told NDTV Profit that a better performance from regional channels helped post 19 per cent growth in advertising revenues.
He also said that the advertising spending is likely to increase from telecom and auto companies going ahead.
Meanwhile, Religare in a note to its clients said, "Zee reported strong Q1 results, with above-expected revenues as ad revenues grew 19 per cent year-on-year. EBITDA margins expanded 180 basis points quarter-on-quarter to 28.8 per cent. We find revenue and margin performance impressive given tough year ad revenue competition. While valuations aren't cheap, margin recovery-led earnings upgrades should support the earnings per share (EPS) momentum in FY17."
Religare has a buy rating on Zee Entertainment for target price of Rs 510.
Zee Entertainment shares ended 2.8 per cent higher at Rs 488.
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