Zee Entertainment Enterprises Ltd (ZEEL) has announced a 70.24% increase in net profit for Q2FY25, reaching Rs 209.4 crore compared to Rs 123 crore in the same quarter last year. Despite challenges in the broader advertising environment, ZEEL’s performance exceeded industry peers, driven by strong subscription revenue growth and operational efficiencies.
Key Financial Highlights:
- Net Profit: Rs 209.4 crore, up 70.24% YoY
- Advertising Revenue: Rs 901.7 crore, down 7.98% YoY
- Subscription Revenue: Rs 969.9 crore, up 9.25% YoY
- Total Income: Rs 2034.4 crore, down 18.94% YoY
- Total Expenses: Rs 1759 crore, down 20.25% YoY
Advertising revenue faced a 7.98% YoY decline, impacted by a soft macro environment. Domestic advertising dropped by 9%, but ZEEL’s ad performance still outpaced its peers, gaining 60 basis points in network viewership share over the past two quarters. With the festive season underway, ad spend recovery remains a critical factor for growth.
On the subscription front, ZEEL reported a 9.25% YoY increase to Rs 969.9 crore, fueled by both linear subscriptions post NTO 3.0 and continued healthy growth in ZEE5’s subscriber base.
The company improved its operational efficiency, with total expenses down by 20.25% YoY to Rs 1759 crore. ZEEL’s operational costs saw a sharp reduction of 25.53%, bringing them down to Rs 1061.5 crore. Additionally, employee benefits expenses dropped by 12.47%, and advertising and publicity costs were reduced by 5.05%.
Despite current headwinds in advertising revenue, ZEEL is well-positioned for a potential recovery, particularly with the onset of the festive season. The company’s ability to capitalize on the ad spend recovery, coupled with continued subscription growth, will play a pivotal role in maintaining its competitive edge in the market.
Key Highlights:
- 70.24% YoY net profit growth in Q2FY25.
- Advertising revenue down 7.98%, but still outperforms industry peers.
- Subscription revenue up 9.25%, driven by ZEE5 and NTO 3.0.
- Total expenses reduced by 20.25%.