Mumbai: Media firm Zee Entertainment Enterprises Ltd (Zeel) posted a consolidated net profit of Rs 118 crore for the first quarter ended 30 June, 2024. For the same quarter in the previous fiscal it had suffered a loss of Rs. 53.42 crore.
The total income of the company was up 7.56 per cent to Rs 2,149.52 crore during the quarter under review. It was at Rs 1,998.26 crore in the corresponding quarter. Total expenses of ZEEL was at Rs 1,941.12 crore, marginally up in the June quarter of FY25.
➢ Domestic ad revenue for the quarter declined by 3.6% YoY, impacted by Cricket and general elections
➢ But Subscription revenue growth was driven by pick up in Linear subscription revenue post NTO 3.0 and Zee5.
➢ Other sales and services during the quarter was aided by movie releases and higher syndication.
It noted that General entertainment channel viewership was impacted by cricket and the elections. On a more positive note the healthy performance in digital continues
The viewership focus is on Zee TV, Zee Marathi and Zee Tamil. The monetisation focus is on Zee Kannada, Zee Bangla, Zee Sarthak, Zee Punjabi, Zee Telugu and Hindi movies/ Cinema
On the digital side of things Zee5 is making steady progress and we have seen healthy trends in usage
and engagement metrics, including the Net Promoter Score
➢ Significant progress has been made towards achieving a balanced cost structure, in order to sustain long-term growth.
➢ Short-term aberration in the digital business growth momentum as it optimises costs for the long run.
➢ 13 shows and movies were released during the quarter including four originals
While Q1 has already started on a positive note with significant step up in margins, the company expects gradual margin improvement to continue through the rest of the year
o The overall cost discipline and prudence will continue to hold it in good stead
o The magnitude of margin improvement will be dependent on Ad revenue pickup in H2 FY25
- FY25 margins are expected to be meaningfully better than FY24
The goal for FY26 is to deliver what it calls an industry-leading 18-20% EBITDA margin
