Zee Entertainment ends FY25 on a high note despite ad revenue slump

Zee Entertainment Enterprises Limited (ZEEL) has announced its financial results for the fourth quarter and the fiscal year ending March 31, 2025, showcasing a resilient performance in the face of a challenging advertising market. While ad revenues fell 27% year-on-year in Q4 FY25, the company demonstrated its ability to adapt and grow, riding on the back of strong subscription income, digital content expansion, and cost optimisation.

According to the company's BSE filing, ZEEL reported its advertising revenue at Rs 589 million, reflecting continued pressure from a sluggish macroeconomic environment. However, this was offset by a stronger showing in other verticals—subscription revenue stood at Rs 1,010 million, while other sales and services contributed Rs 521 million. 

For FY25, ZEEL’s total revenue stood at Rs 9,760 million, marking a 6% year-over-year increase, and profit after tax surged to Rs 6,874 million, a remarkable 245% jump from the previous year. EBITDA for the year rose to Rs 11,962 million with margins improving by 390 basis points to 14.4%, highlighting the success of strategic cost management measures.

Q4 FY25 revenue reached Rs 21,841 million, up 1% compared to the same quarter last year. Notably, the company managed to cut EBITDA losses by Rs 1,899 million, resulting in a quarterly EBITDA of Rs 2,852 million—a critical signal of regained financial stability.

Despite the macroeconomic drag on ad revenues, ZEEL’s diversified business model paid off. Growth in subscription and syndication revenues, coupled with performance from its digital properties—particularly ZEE5 and YouTube channels—enabled the company to weather the downturn. ZEE5 contributed significantly through its strategic content slate, releasing 16 titles during the quarter, including 4 originals, while ZEEL’s YouTube ecosystem added 14.7 million new subscribers during the year, strengthening its position in the digital-first landscape.

The company’s regional content focus also remained strong, with new launches under brands such as Zee TV, Zee Marathi, and Zee Tamil, driving engagement and supporting revenue streams.

ZEEL’s financial position remains robust, with cash and cash equivalents of Rs 24.1 billion as of March 31, 2025, bolstered by Rs 2,000 million from the first tranche of Foreign Currency Convertible Bonds (FCCB). Additionally, the company continued to optimise its content inventory and acquisition costs, aligning operations with long-term profitability goals.

With effective cost controls, a focus on digital and subscription-led growth, and a forward-thinking ESG strategy, ZEEL enters FY26 with renewed confidence. The company cautioned, however, that its forward-looking statements remain subject to macroeconomic variables and evolving industry trends.