New Delhi: Zee Entertainment Enterprises Ltd (ZEEL) has announced a turnaround, posting a consolidated net profit of Rs 118 crore for the first quarter ended June 30, 2024. This marks a significant improvement from the Rs 53.42 crore loss incurred in the same period last year.
The media giant’s total income surged by 7.56% to Rs 2,149.52 crore during the quarter, compared to Rs 1,998.26 crore in the previous year. While domestic ad revenue dipped by 3.6% due to the impact of cricket and general elections, the company managed to offset this with a robust performance in the subscription segment.
Subscription revenue witnessed growth driven by the pick-up in linear subscription post the implementation of NTO 3.0 and the steady progress of Zee5. Additionally, other sales and services contributed to the positive financial results, fueled by successful movie releases and increased syndication.
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Despite facing challenges in general entertainment channel viewership due to cricket and elections, ZEEL has maintained a focus on key channels like Zee TV, Zee Marathi, and Zee Tamil. The company is also prioritizing monetization efforts for Zee Kannada, Zee Bangla, Zee Sarthak, Zee Punjabi, Zee Telugu, and Hindi movies.
On the digital front, Zee5 has demonstrated positive trends in usage and engagement metrics, including a rising Net Promoter Score. However, ZEEL has acknowledged short-term challenges in digital business growth as it optimizes costs for long-term sustainability.
The company has made significant strides in achieving a balanced cost structure to support sustained growth. This, coupled with a strong start to the quarter and gradual margin improvement, positions ZEEL for a promising future.
Looking ahead, ZEEL aims to maintain cost discipline and prudence while driving margin improvement. The company anticipates a substantial increase in margins for FY25 compared to FY24 and has set an ambitious target of an industry-leading 18-20% EBITDA margin for FY26.
While the magnitude of margin improvement will depend on ad revenue pickup in the second half of FY25, ZEEL’s strategic focus and financial performance indicate a positive trajectory for the media conglomerate.
