afaqs! news bureau

ZEEL's Q4 results show net profit of Rs 13 crore, compared to Rs 196 crore loss in 2023

The revenue from operations for the quarter was Rs 2,185 crore, up from Rs 2,126 crore in the same quarter in 2023.

On May 17, 2024, Zee Entertainment Enterprises reported a net profit of Rs Rs 13.35 crore for the quarter ended March 2024, compared to a loss of Rs 196 crore in the same quarter in 2023.

Total income for the quarter has increased by 3% year-on-year to Rs 2,185 crore, compared to Rs 2,126 crore in the same quarter of 2023.

The company also reported a better advertising environment in Q4 2024, with domestic ad revenue growing by 10.6% year-on-year due to the recovering advertising market and increased spending by FMCG clients.

The board recommended an equity dividend of Rs 1 per share for the 2023-24 financial year. They also reported an EBITDA of Rs 210 crore for January-March 2024, a 38% increase year-on-year, with margins improving to 9.6%.

“Domestic advertising revenue for the quarter grew by 10.6% YoY driven by the continued recovery in macro advertising environment and spending pickup by FMCG clients,” the company said in its statement.

In the earnings call, CEO and MD Punit Goenka stressed the importance of "frugality" following a cost-cutting strategy after the Zee-Sony merger fell through.

He said it is important to adjust the business now to balance costs and ensure long-term growth. "With that back drop, we are looking at every element of the business with the lens of improving the overall performance. As a result, we expect some short-term aberration in digital business financial performance," he said.

Goenka said the company has been actively buying movies and original content. but "there are times in situation like today when we have to be frugal and make sure of buying right content at the right price. So, we are being very cautious in what we buy and at what price. We may slow down buying a bit but eventually when profitably improves we will deploy capital back in ZEE5 content."

During the Q4 FY24 earnings call, He added, "We believe that our (OTT) platform is built to compete in the market with the best form. There can be improvements but we didn't need this level of people. We are confident that the team that remains is capable of taking the growth plans forward."

Moving into the second part of FY25, the company predicts that profits will slowly get better. It believes that by the end of 2025, the profit will be a lot better than it was in 2024.

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