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Media

ZEE's net profit plunges 92% in Q3

At ₹194.3 crore, the revenue of ZEE5 jumped 33% from a year ago, with monthly active users at 119.5 million and daily active users at 11.5 million

Zee Entertainment's consolidated net profit decreased by 91% to just Rs 24 crore for the three months that ended in December in comparison to the same period last year.

Compared to the similar quarter previous year, when total revenue was 2,130 crore, it was unchanged during the reviewed quarter, coming in at Rs 2,127 crore.

The company's operational profit suffered as a result of slower revenue growth and increased spending on content, marketing, and technology. The third quarter's EBITDA, or earnings before interest, taxes, depreciation, and amortisation, were Rs 338 crore, a decrease of nearly 29% from the same period the previous year. In the most recent year, it was Rs 479 crore.

EBITDA margins decreased from 23% a year ago to 16% in the December quarter.

Domestic advertising sales fell by 16% YoY during the quarter to Rs 1,015 crore, mostly as a result of Zee Anmol's FTA withdrawal and a slowdown in FMCG spending as a result of the difficult macroeconomic climate.

The underlying organic growth in Zee5 and Zee Music as well as the realisation of subscription revenue from the Siti network all contributed to the 11% YoY increase in subscription revenue.

A significant 148% YoY increase in other sales and service revenue was attained, mostly as a result of higher syndication income.

Due to greater content expenditures for movies and linear programming, as well as ongoing investments in Zee5, operating costs—including programming and technology costs—rose over the prior year.

Prior to the results on Monday, Zee stock on the NSE finished 3.69% lower at Rs 218 a share. The shares have lost 10.32% so far this year due to pressure.

The company claimed that in the domestic linear market, network share increases in the south cluster were offset by weak Marathi performance and a seasonal decline in Hindi movie viewing.

For the months of October through December, Zee5's MAUs totaled 119.5 million, while its DAUs totaled 11.5 million.

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