10 October 2018 Zees 2QFY19 revenue increased by a stellar 25% YoY to INR12.1b (3% beat). Consequently, EBITDA, too, grew strongly by 38% YoY, with the margin expanding by 320bp YoY despite continued investments in Zee5 (more than prior expectation of 200-300bp). Domestic ad/subscription growth was robust at 23%/26% YoY ad growth was driven by 12% industry growth, Zees market share gains, a low base (2QFY18 impacted by GST), and estimated 1-2% contribution of Zee5. Reported PAT declined 35% YoY to INR3.9b. (1) Expect mid-high-teens ad growth in 2HFY19. (2) Subscription growth to come in ahead of guidance of low-teens, led by better phase III monetization and catch-up revenue. margin is already at 33%, yet ZEE maintained 30%+ margin guidance given its high investment plans in Zee5 in 2H. (4) Zee5 to contribute at least 30% of revenue in next five years.