Zee Entertainment Q2FY25 results: Net profit up 70% at Rs 209 crore

Revenue declines 18% due to 'muted advertising spending environment'

Zee Entertainment Enterprises (ZEEL) on Friday reported a net profit of Rs 209.4 crore in the second quarter of the financial year (Q2 FY25), rising 70.2 per cent year-on-year (Y-o-Y) after it cut costs.

The Mumbai-headquartered company’s revenue dropped by almost 18 per cent to Rs 2,000.7 crore compared to Rs 2,437.8 crore in the same quarter last year.

“Domestic advertising revenue for the quarter declined by 9 per cent Y-o-Y, impacted by a muted advertising spending environment in Q2,” said ZEEL in its earnings presentation. “While ad spending is picking up with the onset of the festive season, sustained recovery remains the key.”

The entertainment major’s profit before depreciation, interest and taxes was down 16.8 per cent Y-o-Y to Rs 109.1 crore. It said that a decline in operating cost was driven by lower programming and technology costs.

ZEEL’s other income slumped by 53 per cent to Rs 33.7 crore Y-o-Y. On a sequential basis, other income increased by 77.4 per cent.

“Other sales and services declined Y-o-Y as Q2 FY24 had higher theatrical revenue from Gadar 2 and other syndication,” said the company, referring to the Bollywood movie.

Subscription revenue has grown more than 9 per cent Y-o-Y in the last three quarters, according to the earnings presentation. Revenue from Zee5, the company's online streaming platform, stood at Rs 236.6 crore in Q2 FY25 during which it released 16 shows and movies, including five originals.

“Significant progress has been made towards achieving a balanced cost structure, to sustain long-term growth in ZEE5,” said the company. ZEEL had earlier announced it is trimming its workforce to save costs.