Earnings Review
Cost control steps aid Zee Ent Apr-Jun revenue, PAT
This story was originally published at 18:35 IST on 31 July 2024
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HYDERABAD - Increased subscriptions, movie releases, content syndication, and effective cost management helped Zee Entertainment Enterprises Ltd report decent earnings for the Apr-Jun quarter.
Zee Entertainment posted a consolidated net profit of 1.18 bln rupees for Apr-Jun, compared with a loss of 534.2 mln rupees a year ago. The total revenue from operations for the quarter rose 7.4% to 21.31 bln rupees.
Zee Entertainment's subscription revenue for Apr-Jun increased 9% year-on-year to 9.9 bln rupees, boosting the company's revenue growth for the quarter. However, domestic advertising revenue declined 3.6% year on year to 9.11 bln rupees due to a shift in spending from general entertainment channels to news and sports genres, influenced by elections and the cricket season. Movie releases and syndication services also contributed to the revenue improvement for the quarter.
The company reported an EBITDA margin of 12.8% for the quarter, with EBITDA at 2.7 bln rupees. There was a one-time exceptional loss of 286 mln rupees related to employee termination costs.
Brokerage Prabhudas Lilladher, in its pre-earnings note said that cost control steps are likely to help Zee Entertainment's Apr-Jun earnings before interest, tax, depreciation, and amortisation, or EBITDA margins. A reduction in employee benefit expenses and decreased losses related to its over-the-top, or OTT, platform Zee5 also aided overall margin improvement. The company reported a 13% year-on-year decline in employee benefit expenses, totalling 2.26 bln rupees. Total expenses for the quarter rose by 0.7% year on year to 19.4 bln rupees.
Zee Entertainment said that due to cost optimisation efforts, growth in the digital business, particularly Zee5, may experience some irregularities.
The company released a total of 13 shows and movies on the Zee5 platform, along with three movies--two in Hindi and one in Tamil--through its movies division. The company's share in total television network viewership slightly declined to 16.4% from 16.8% in the year-ago period, as noted in an investor presentation.
Today, shares of Zee Entertainment Enterprises Ltd shares ended at 148.67 rupees on the National Stock Exchange, up 2.4% from their previous close. End
Reported by Narayana Krishna
Edited by Akul Nishant Akhoury
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