Zee Entertainment’s Stellar Q3 FY25 Financial Performance
Zee Entertainment Enterprises Limited (ZEEL) announced a significant 179.7% rise in consolidated net profit for the third quarter of FY25. The company’s effective cost management offset declines in advertising revenue and overall revenue, leading to a net profit of ₹163.6 crore compared to ₹58.5 crore during the same period last year.
Revenue Declines Amid Advertising Slowdown
The company reported consolidated revenue from operations of ₹940.6 crore, an 8.4% decline from ₹1,027.4 crore in the prior-year quarter. ZEEL attributed this decline to delays in renewing a key business-to-business (B2B) deal. However, discussions for the renewal are ongoing, and the company expressed optimism about sustaining its performance in future quarters.
Advertising revenue experienced an 8% year-on-year drop to ₹940.6 crore due to a weak festive season and reduced spending by fast-moving consumer goods (FMCG) companies. Despite this, sequential advertising revenue rose slightly by 4% from the previous quarter, suggesting early signs of recovery.
Subscription revenue grew 7% to ₹982.5 crore, driven by traditional linear subscriptions and growth in ZEE5, the company’s streaming service. Cumulatively, subscription revenue for the first nine months of FY25 reached ₹2,939.6 crore, marking an 8% year-on-year increase.
Cost Optimization Boosts Profit Margins
Total expenses declined by 10% year-on-year to ₹1,734.7 crore, supported by a 16% drop in operational costs to ₹996.8 crore. The reduced costs were attributed to lower programming and technology expenses. The company’s core profit margin improved to 16.1% compared to 10.2% a year ago, with a long-term target of reaching 18%-20% by FY26.
ZEE5, the company’s streaming platform, narrowed its core losses to ₹136 crore from ₹240 crore in the prior-year period. The streaming platform also reported an 8% revenue increase, driven by its updated content offerings and an increase in paying subscribers.
Global and Operational Highlights
ZEEL’s international operations generated ₹60 crore in advertising revenue and ₹86.6 crore in subscription revenue during the quarter. However, the company reported a slight dip in its overall network share, which fell to 16.9% from 16.5% in the same quarter last year. Its weekly audience reach also declined from 75.7 crore to 74.6 crore.
In addition to the financial performance, ZEEL’s Board of Directors approved the appointment of Divya Karani as an Independent Director for a three-year term. This appointment remains subject to approval by the Ministry of Information and Broadcasting and shareholders.
