Zee Q1FY25 results: Subscription revenue increases by 9% YoY, reaching Rs 987.17 crore

Zee’s domestic ad revenue for the quarter dropped by 3.6%, impacted by the IPL and general elections.

Zee Entertainment Enterprises (ZEE) reported a net profit of Rs 118 crore for the first quarter (Q1FY25) , a significant turnaround from a loss of Rs 53.42 crore in the same quarter last year. The company's revenue from operations grew 8% year-on-year (YoY) to Rs 2,149 crore, up from Rs 1,998 crore in the corresponding period of the previous year.

Domestic advertising revenue for the quarter declined by 3% year-on-year to Rs 911 crore, affected by the impact of cricket events and the general elections. The company explained that even though advertising was weak in the first quarter, this was balanced out by a rise in subscription revenue, successful movie releases, and higher income from syndication.

In the first quarter, subscription revenue grew by 9% year-on-year, driven by an increase in linear subscription revenue following the implementation of NTO 3.0 and the performance of ZEE5. Sequentially, ZEE's net profit after tax saw a substantial increase, surging from Rs 13.35 crore in the preceding March quarter.

The company posted an EBITDA of Rs 271.7 crore for April-June 2024, growing 75% compared to last year. Margins improved to 12.8% during this period. Zee has stated that it aims to achieve EBITDA margins of 18% to 20% by FY26 as part of its turnaround strategy.

“The results of several strategic steps including frugality, optimisation and quality control is being witnessed gradually. Our efforts will be focused towards enhancing our revenue profile, while staying committed towards our targetted aspirations for the future,” added Punit Goenka, MD & CEO, Zee Entertainment during its Q1earnings call.