17 July 2018 Zee reported strong 1QFY19 results, with ex-sports consol. revenue growing 17% YoY to INR17.7b (in-line) and EBITDA increasing 17% YoY to INR5.7b. The robust performance can be attributed to strong domestic ad revenue growth of 22% YoY, given viewership share improvement and healthy industry adspend. Domestic subscription revenue grew 12% YoY to INR4.3b. EBITDA margin expanded 50bp YoY to 31.9%, as strong revenue growth was partly offset by a 14%/21% YoY rise in content/SGA expenses. Adjusted for fair value change, PAT is up 15% YoY, implying an 8% miss on account of low other income, high depreciation and tax expenses. (1) Industry ad growth to exceed estimate of +12%. Domestic subscription revenue to grow in low- teens. (2) Zee5 is among top-5 entertainment platforms; target is to scale it up to top position in 18-24 months. Will increase original content from 14 to 34 shows by 2QFY19.