Zee Entertainment eyes modest ad revenue growth amid industry headwinds
CEO Punit Goenka said they remain hopeful of regaining the growth through targeted interventions going forward.
ADVERTISEMENT
Zee Entertainment Enterprises is projecting only modest growth in advertising revenue for the upcoming fiscal year, despite signs of financial recovery and strategic expansion.
Chief Executive Punit Goenka, speaking on an earnings call, said that while the company does not expect a dramatic turnaround, it is aiming for high single-digit growth in advertising revenue in fiscal 2026, even as inflationary pressures persist.
The company’s consolidated advertising revenue fell sharply in the fourth quarter of fiscal 2025, declining 32.6 percent year-over-year to ₹837 crore from ₹1,110 crore in the same period last year. For the full fiscal year, advertising revenue dropped 11.4 percent to ₹3,591 crore, down from ₹4,057 crore in fiscal 2024.
“We witnessed a dip in advertising revenue growth and the aberration in subscription revenue numbers,” Goenka said. “But we remain hopeful of regaining the growth through targeted interventions going forward.” He added that a rebound in ad revenue is expected after the current cricket calendar concludes, typically a critical period for viewership and spending.
Goenka emphasized a strategic pivot toward improving margins, reducing losses, and boosting cash flow. The company is investing in content development, platform expansion, and monetization efforts, including a growing focus on ‘mini-series’ airing on Zee TV and the free-to-air segment, as it looks to stabilize performance.
These content efforts, he said, could generate revenue growth of 8 to 10 percent and operating margins between 18 and 20 percent in the next fiscal year.
As part of its content pipeline, Zee plans to release between 18 and 21 films in the current year. “We have to leverage our biggest strength, which is language,” Goenka said. “That’s where the growth of 8 to 10 percent will come from - for both linear and digital platforms.”
Goenka also addressed the potential implications of the merger of Reliance's Viacom18 and Disney Star, resulting in the creation of JioStar. Goenka predicts a broader positive impact on the entertainment industry’s economics. While production costs remain largely fixed due to commoditization, he said the deal has already yielded benefits in content acquisition, especially for films and OTT platforms.
As ZEEL navigates a challenging media landscape, its leadership remains cautiously optimistic, betting that strategic programming and operational discipline will help the company regain momentum in a shifting industry.
