Mumbai: Zee Entertainment Enterprises Ltd (ZEEL) announced a remarkable 70% increase in net profit for the quarter ended September 30, 2024, reaching Rs 209 crore, up from Rs 123 crore in the same quarter last year. This strong performance highlights the company’s ability to maintain profitability amidst challenging market conditions.
However, the company experienced a 19% decline in total income, which fell to Rs 2,034 crore in Q2 FY25 from Rs 2,510 crore in Q2 FY24. Despite this dip in revenue, ZEEL’s shares responded positively, trading 5.5% higher at Rs 132.57 at 3:05 PM.
The growth in profitability was primarily driven by robust performance in both linear subscription revenue post NTO 3.0 and the ZEE5 streaming platform. Over the last three quarters, ZEEL has recorded year-on-year subscription revenue growth exceeding 9%.
In a related development, ZEEL announced the re-appointment of Punit Goenka as Managing Director and Chief Executive Officer for a five-year term, effective January 1, 2025, through December 31, 2029.
Additionally, the company disclosed that the record date for determining eligibility for the final dividend for the fiscal year ended March 31, 2024, is set for November 8, 2024. If approved by shareholders, the dividend will be paid on or after November 29, 2024.
Reflecting broader industry trends, ZEEL’s domestic advertising revenue declined by 7.9% year-on-year to Rs 901.7 crore, impacted by a muted advertising spending environment during the quarter. Conversely, subscription revenue saw an increase of 9.24%, totaling Rs 969.9 crore.
“Prudent cost discipline and focused execution have allowed us to achieve a 630 basis points improvement in EBITDA margins despite a challenging macro environment. Significant strides have been made toward establishing a balanced cost structure to support long-term growth in ZEE5,” the company stated.
Effective cost management contributed to ZEEL’s profitability, with the Q2 FY25 EBITDA margin standing at 16%, reflecting a sequential increase of 320 basis points.
