Zee Entertainment posted a muted set of numbers for Q1FY18 where cost rationalization helped shore the bottomline. Thus despite a flat consolidated total revenue at Rs.1641 crore (helped by 38% rise in other income), the company ended the quarter with a 16% increase in net profit at Rs.251 crore.

Revenue was impacted by the 28% decrease in income from sales and services and 9% decline in subscription revenue. Advertising revenue rose 6%.

During the quarter, ZEEL’s International business revenue (excluding sports business) was Rs. 195 crore. The advertising and subscription revenues were lower by 12.6% and 0.6%, respectively. The adverse impact of currency appreciation and region-specific issues has contributed to the decline in revenues.

The company’s operating costs showed a 11% decline while other expenses fell 7% and this helped EBITDA come in 27% higher at Rs.431 crore and margins showed  a whopping 636 bps expansion at 28%.

The stock price is currently in the red, obviously disappointed over this performance. It slipped over Rs.13 to Rs.537.30 and is now at Rs.542 levels, down 1.5%. This indicates there is disappointment but the market keeps its faith in the stock intact as it is not a precipitated fall.