Zee Entertainment Enterprises Ltd (ZEEL) announced its Q2 FY25 financial results, highlighting a 61% rise in net profit to ₹209 crore from ₹130 crore in Q2 FY24. Despite this, the company’s revenue from operations fell by 19% to ₹2,034 crore, down from ₹2,510 crore in the same period last year. This revenue decline was mainly attributed to lower domestic advertising revenues, which dropped by 9% year-on-year due to a weak ad spending environment. However, the company expressed optimism about a potential recovery, particularly with the onset of the festive season.
ZEEL’s EBITDA for the quarter showed a slight 4% decline, reaching ₹321 crore, but its margin improved by 240 basis points to 16%. The company remains confident of achieving an EBITDA margin between 18% and 20% in the upcoming quarters. ZEEL’s digital platform, ZEE5, made significant progress in reducing losses, with its EBITDA loss narrowing to ₹158.8 crore, down from ₹265.2 crore in the previous year. The company emphasized its focus on achieving a balanced cost structure to drive long-term growth in the digital segment.
On the corporate front, Punit Goenka has been reappointed as the Managing Director and CEO for a five-year term starting January 1, 2025. His leadership is seen as instrumental in steering ZEEL through current challenges.
Despite recent financial improvements, ZEEL’s stock performance over the past year has been negative, with the share price dropping over 50%. However, the stock saw a 5% increase to ₹131.70 on the National Stock Exchange following the results announcement.
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