Zee Entertainment Q1 net profit rises to Rs 118 crore; ad revenue declines by 3.6%
Zee Entertainment Q1 FY25: The EBITDA margin of the company surged to 12.8% from 7.8% in the Q1 FY24 aided by cost management
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Zee Entertainment has posted a profit of Rs 118.1 crore for Q1 FY25 after suffering a loss of Rs 53.4 crore for the corresponding period in the previous year, the company informed in a stock exchange filing on Wednesday.
The media and entertainment company also posted a 784.6% rise in net profit Quarter-on-Quarter. The company registered Rs 13.4 crore of profit in the previous quarter (January-March) in 2024.
Punit Goenka, MD & CEO, ZEE Entertainment Enterprises Ltd. during the Company's Q1FY25 earnings call said, "The results of several strategic steps implemented in the previous quarter are being witnessed gradually, and we continue to maintain a sharp focus on Frugality, Optimization and Quality Content across the business. Timely and action-oriented interventions centred around these three key tentpoles, have enabled us to achieve a healthy growth momentum on the margin profile."
Goenka further said, "Our focused efforts have enabled us to further strengthen our liquidity and financial position. During the quarter, we have generated strong free cash flow and our content inventory has also continued to decline, driven by optimized acquisition and movie releases. We are committed to achieve our targeted aspirations for the future, and our efforts in the subsequent few quarters will be focused towards enhancing our revenue profile with prudence and resilience at the forefront."
As per the regulatory filings, the EBITDA margin of the company surged to 12.8% from 7.8% in the Q1 FY24 aided by cost management.
The operating revenue of Zee Ent also rose by 7.4% to Rs 2,130 crore in Q1 FY25 as compared to Rs 1,983 crore in the same period of the corresponding quarter.
According to the company, advertising revenue for the quarter declined by 3.6% YoY to Rs 913 crore due to the general elections and T20 Tournament. However, the ad and publicity expenses by the company saw an increase of 8.4% YoY to Rs 2,624 crore in June quarter.
However, the company's subscription growth picked up by 4% post NTO 3.0 and ZEE5.
"While Q1 has already started on a positive note with a significant step up in margins, we expect gradual margin improvement to continue through the rest of the year," the company said. Zee Entertainment has expected FY25 margins to be meaningfully better than the previous fiscal year. It aspires to deliver an 18-20% EBITDA margin in FY26.
