Updated February 13th, 2024 at 19:05 IST

Zee Entertainment profit more than doubles to Rs 58.54 crore in December quarter

Strong performance came in the wake of Zee's failed merger with Sony, with the results serving as the first financial update since termination of the deal.

Business Desk
Zee Entertainment | Image:Zee Entertainment Enterprises
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Zee Entertainment Enterprises December quarter profit more than doubled to Rs 58.54 crore from Rs 24.32 crore recorded in the same period last year amid a challenging advertising landscape.

The strong performance came in the wake of Zee's failed merger with Sony India, with the results serving as the first financial update since the termination of the proposed deal. Sony had called off the merger citing contractual breaches, thus ending speculations about the creation of one of India's largest TV broadcasting entities.

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A key driver of Zee's robust quarterly performance has been its subscription revenue, which saw a significant boost, partially offsetting the challenges posed by a subdued advertising environment. The company attributed this uptick in subscription revenue to the recognition of Rs 59 crore from Siti Network, an entity under the Essel Group umbrella.

Despite a marginal 3 per cent decline in advertising revenue, Zee remains optimistic about its subscription-driven growth strategy. While acknowledging a seasonal festive uptick in the third quarter, the company underscored the persistently slow pace of recovery in the overall advertising market.

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Looking ahead, Zee expects certain expenses associated with the failed merger, including legal, compliance, and advisory fees. It expects a gestation period of six to eight months for its strategic efforts to manifest in improved margin performance, with fiscal year 2025 projected to witness a major enhancement in margins compared to the current fiscal year ending March 31.

Zee Entertainment shares ended 0.77 per cent higher at Rs 188.60 ahead of its earnings announcement.

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(With Reuters inputs)
 

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Published February 13th, 2024 at 19:05 IST