Zee Entertainment Enterprises Ltd on Wednesday reported a 38.23 percent decline in consolidated net profit at Rs 386.10 crore for the second quarter ended September 30, 2018.

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Punit Goenka, MD and CEO of Zee Entertainment, spoke to CNBC-TV18 about the company's earnings and business plans.

“For the rest of the year, I can revise my guidance to high teens for the advertising growth for the company. On the subscription side also, where I had guided for low teens, I think we will be in the mid-teens to high-teens kind of number for the entire year,” said Goenka.

“I think it (margins) will be upwards of 30 percent for sure because having this kind of margin only gives me the confidence to fasten my investments in the digital world that I believe will reap us more benefits than trying to deliver higher margins at this stage,” he added.

“If you look at the fact that the Zee5 platform is generating revenue already, that also is getting invested back. There is an opportunity cost of all the content that I gave to Zee5 platform, which is produced or acquired for the TV platform. If I take all that into account, the number will be much higher but because we look at it from the EBITDA lens, it could be in the 400-500 bps (basis points) range,” said Goenka.

One basis point of one-hundredth of a percentage point.

“We are already running at full capacity. The large art of the growth has come from the regional sector while we have seen growth in the national sector as well but Bangla, Kannada, Tamil all have more than contributed to the average,” he said.

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