Zee Entertainment Q3 results: Consolidated net profit up 180% at Rs 163 cr

Zee Entertainment Enterprises (ZEEL) reported a rise in consolidated net profit by almost 180 per cent in Q3FY25, which stood at Rs 163.6 crore, compared with the same quarter last year, due to a reduction in its operating costs.

 

This decline in operating costs on a year-on-year (Y-o-Y) basis was driven by lower programming and technology costs, the company said in a statement in its earnings presentation.

 

However, the company’s net profit slumped by almost 22 per cent to Rs 209.4 crore on a sequential basis.

 

At the same time, the Mumbai-headquartered company’s revenue dropped by 3.3 per cent to Rs 1,978.8 crore in the October-December quarter compared with the same quarter last year.

 

 

The company’s advertising revenue dropped by 8 per cent to Rs 940.6 crore in Q3FY25 on a Y-o-Y basis but increased by 4 per cent on a sequential basis. This was due to the sluggish festive season, the company said in its earnings presentation.

 

“Sustained consumption slowdown is resulting in lower FMCG (fast-moving consumer goods) ad spending,” the statement added.

 

The company’s top executive, in the earnings call, mentioned that advertising sales in the international space have grown for ZEEL on a Y-o-Y basis. In Q3FY25, the international advertising revenue was at Rs 60 crore.

 

The growth on a Y-o-Y basis in subscription revenue was driven by both linear subscription revenue and ZEE5, ZEEL’s over-the-top (OTT) platform, according to the company’s earnings presentation. ZEE5 observed revenue growth of 8 per cent to Rs 241.3 crore in the October-December quarter on a Y-o-Y basis.

 

ZEEL’s other sales and services declined by 43 per cent to Rs 55.7 crore on a Y-o-Y basis due to a leaner movie calendar and lower syndication revenue. Other income increased by 24.5 per cent to Rs 34.5 crore in the October-December quarter on a Y-o-Y basis.

 

The entertainment major reported an Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 318.4 crore, as per its earnings presentation.

 

The company’s top executive also added in the earnings call that ZEEL’s priority for Q4FY25 and FY26 is to further accelerate revenue growth, with the coming quarter seeing a busier movie calendar.

 

Additionally, ZEEL’s board of directors approved the appointment of Divya Karani as an independent director for a period of three years, with effect from January 23, based on the recommendations of the nomination and remuneration committee, as per the stock exchange filing. Previously, she served as the chief executive officer of Dentsu Media, South Asia, leading the agency for over 12 years.

 

“We are glad to welcome Divya Karani as an esteemed member on the company’s board,” Punit Goenka, chief executive officer, ZEEL, said in a statement. “The Indian media and entertainment sector is evolving swiftly, making it pertinent to craft innovative business solutions with a lens of fiscal prudence and profitability. We believe Karani’s deep domain knowledge in advertising and spearheading large-scale agencies will enable us to effectively navigate the macroeconomic environment and build value-accretive offerings for brands to propel revenue growth for the business.”