Zee Entertainment Q2 results: Net profit rises 70% to Rs 209 crore

It had a net profit of Rs 123 crore in the July-September quarter a year ago, according to a regulatory filing from Zee Entertainment Enterprise Ltd (ZEEL).

Zee Entertainment Enterprises Ltd (ZEEL) on Friday reported 70.24 per cent jump in consolidated net profit at Rs 209.4 crore for September quarter FY25 as margins improved by effective cost management.

It had logged a net profit of Rs 123 crore in July-September FY24, according to a regulatory filing from ZEEL.

However, total income declined 18.93 per cent from Rs 2,509.6 crore to Rs 2,034.4 crore.

The profitability increased due to effective cost management, according to an earning presentation from ZEEL.

"Prudent cost discipline and focused execution has enabled us to clock 630 basis points improvement in EBITDA margins in a challenging macro environment," it said.

In September quarter, ZEEL's EBITDA (earnings before interest, taxes, depreciation, and amortization) margin was at Rs 321 crore, up 2.4 per cent year-on-year.

Revenue from advertising was down 7.9 per cent to Rs 901.7 crore in the quarter, impacted by a muted Ad spending environment.

"Macro Ad environment softness has restrained our ability to drive advertising revenue growth," said ZEEL.

However, its revenue from subscription was up 9.24 per cent to Rs 969.9 crore during the period under review.

ZEEL continued healthy growth driven by both Linear subscription revenue post NTO 3.0 & ZEE5. From the last three quarters "YoY growth (in subscription revenue) has exceeded 9 per cent" , it added.

Its revenue from other sales & services was down 77.38 per cent to Rs 129.1 crore in the quarter.

It "declined YoY as Q2 FY24 had higher theatrical revenue from Gadar 2 and other syndication."

Shares of ZEEL on Friday settled 5.29 per cent higher at Rs 132.40 apiece on the BSE.

Zee reappoints Punit Goenka as MD&CEO

 

Zee Entertainment Enterprises Ltd (ZEEL) on Friday announced the reappointment of Punit Goenka as Managing Director & Chief Executive Officer for a five-year term.

The company's board approved a proposal for Goenka's reappointment with effect from January 1, 2025, ZEEL said in a BSE filing.

"Based on the recommendation of the Nomination & Remuneration Committee and subject to approval of members of the company, the board of directors...at its meeting held today, considered and approved the reappointment of Punit Goenka as MD & CEO of the company," the filing said.

It further said Goenka is not debarred from holding the office of director by virtue of any Sebi order or any other authority.

In June 2023, the Securities and Exchange Board of India (Sebi) had debarred Goenka along with his father and Essel Group Chairman Subhash Chandra from holding key positions in any listed company for allegedly diverting assets of Essel Group companies.

However, this order was subsequently challenged before the Securities Appellate Tribunal, which had on October 30, 2023, set aside the order passed by Sebi.

Goenka also serves as a Board of Director for the Indian Broadcasting & Digital Foundation (IBDF).

After the collapse of the merger proposal with rival Sony, Goenka is working to enhance the performance and profitability of the company.

He has implemented a strategic growth plan that centres around frugality, optimization and a sharp focus on quality content. 

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