Zee Entertainment Q1 results: Firm posts loss of Rs 53 cr, ad revenue drops 2.6%

Zee Entertainment on Wednesday reported Rs 53.4 crore loss in the June quarter of the financial year 2024 as against Rs 106-crore profit posted in the same period last year. The company's advertising revenue came in at Rs 901.8 crore, down 6.4 per cent quarter-on-quarter and 2.6 per cent year-on-year.

Other sales and services revenue was up 42 per cent YoY aided by theatrical revenue from movie releases. The company's programming and Technology costs increased YoY due to higher content costs in movies (including theatrical releases) and investment in ZEE5. Zee's EBITDA for the quarter came at Rs 154.9 crore.

Zee flagged muted advertisement spending, mainly due to the Indian Premier League, a cricket league, during the first two months of the quarter. Programming and technology costs increased due to higher
content costs in movies, while marketing costs increased on the back of spending on new shows, movies, and theatrical releases, Zee said.

"Green shoots emerged towards the quarter end, with early signs of advertisement spends starting to pick up, led by fast-moving consumer goods companies," the broadcaster said.

The results were poorer than most estimates which expected 80-90 per cent drop in profit. Ahead of the results, Kotak Institutional Equities saw adjusted profit for the media firm to fall 87.30 per cent YoY to Rs 15.50 crore against Rs 121.60 crore YoY.

The brokerage firm also estimated an increase in net sales of 3 per cent YoY to Rs 1,902 crore. The brokerage firm factored in a 4.5 per cent decline in ZEE's ad revenues despite the weak base (the impact of Zee Anmol withdrawal from FTA is now in the base).