Zee Entertainment Q4 results: Media firm posts first loss in 3 years on weak ad demand, higher costs

Media firm Zee Entertainment Enterprises Ltd on Thursday reported its first quarterly loss in three years, as advertisers tightened their marketing budgets and expenses shot up.

Zee posted consolidated net loss of Rs 196 crore for the quarter ended March 31 as against Rs 182-crore profit a year ago, a regulatory filing showed.

The company's total income fell 9.9% to Rs 2,126 crore, while expenses jumped nearly 10%.

Zee, in a statement, said its March-quarter domestic advertisement revenue slipped by a tenth, blaming a "slowdown in ad spending."

It also added it is discontinuing its funding to tech startup SugarBox due to inflation and conditions for impending merger with Japan's Sony Group Corp, but would pour money into digital and sports businesses.

Zee had suffered setbacks with creditors over a loan default dispute amid the merger but settled it in March.

However, recent reports said the National Stock Exchange and Bombay Stock Exchange may have to reconsider their approvals for the merger, following a ruling by market regulator Sebi against an entity of Essel Group, which owns Zee.

Sony CEO Kenichiro Yoshida last week said the company is trying to complete the merger by the end of the first half of the fiscal year ending March.

Shares of Zee closed 1.08% lower ahead of the earnings on Thursday, and were down 11.6% in the March quarter.

(With inputs from Reuters)