Zee Entertainment Enterprises reported a 70 per cent rise in the net profit in the September quarter on better cost efficiencies and one-time gain, while revenue from operations fell 18 per cent due to subdued advertising revenue.
The media company recorded consolidated net profit of ₹209.4 crore on operating revenue of ₹20,00.7 crore. Subscription revenue rose 9 per cent on year to ₹970 crore, while advertising revenue fell 8 per cent on year to ₹901.7 crore.
Zee board also approved the re-appointment of Punit Goenka as MD and CEO for five years from January 1, 2025, to December 31, 2029.
In an analyst call, Goenka called himself an “eternal optimist” who looked to transform challenges into opportunities. He said that the company was implementing a strategic growth plan that was already displaying tangible results with improvements being seen sequentially.
Subscription revenue had shown healthy growth and would see a further uptick in the second half, Goenka said. While ad revenues had been subdued during the quarter under review, they had shown some pickup in September with the beginning of the festival season.
The company’s EBITDA margin increased to 16 per cent from 13.6 per cent year ago, while on an absolute basis the EBITDA rose 18 per cent sequentially, though it fell 4 per cent on year. Total expenses fell by a fifth to ₹1759 crore, driven by a reduction in operational costs, employee benefits expenses, finance costs as well as spend on advertising and publicity.
Goenka said the long term aspiration was to reach 18-20 per cent EBITDA margin, with all segments of the business performing together.
The company’s cash position at the end of September was at ₹1780 crore, compared to ₹830 crore at the end of December 2023.
Its OTT channel Zee5 reported revenue of ₹236.3 crore in the quarter, with a 6 per cent gain on year while EBITDA losses narrowed.
The Zee network market share, which had taken a dip in Q1 due to elections and cricketing events, saw a resurgence and back above 17 per cent in Q2.
Goenka at the helm
The company, while recommending his reappointment, said that Goenka has “successfully spearheaded” the company across all formats. “With immense expertise in content, he has strengthened the company’s content creation capabilities to create compelling stories and characters across languages,” it said.
The notification also clearly said that Goenka was “not debarred from holding the office of Director by virtue of any SEBI Order or any other authority.”
In June 2023, Sebi had passed an order barring Punit Goenka and his father and Subhash Chandra from holding any key positions in any listed company alleging diversion of assets of Essel group companies. On an appeal filed by the company, the Securities Appellate Tribunal had set aside the order in October of that year.