Updated February 14th, 2024 at 14:20 IST

Zee Entertainment focuses on frugality and quality content for growth

Goenka also announced plans for a sound recalibration of the OTT cost structure, with a gradual recovery in ZEEL's margins.

Reported by: Business Desk
Zee Entertainment | Image:Zee Entertainment
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ZEEL growth plans: Zee Entertainment Enterprise Ltd (ZEEL) is charting a strategic course focused on frugality, optimisation, and a renewed emphasis on quality content, according to Managing Director and CEO Punit Goenka. In the company's first earnings call since the collapse of the merger deal with Sony Pictures Entertainment last month, Goenka outlined a vision for 8 to 10 per cent compound annual growth rate (CAGR) revenue growth, with digital business expected to grow even faster.

"We will have a sharper emphasis on frugality, with a crystal-clear focus on quality and output," Goenka stated, highlighting the company's commitment to streamlining operations and enhancing returns on investments across various verticals, including technology, content, and marketing. He emphasised that these measures would elevate and streamline existing capabilities to align with robust growth plans.

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Sound recalibration

Goenka also announced plans for a sound recalibration of the OTT cost structure, with a gradual recovery in ZEEL's margins expected to reflect in the second half of FY25. The company aims to achieve an industry-leading EBITDA margin profile of 18 to 20 per cent by FY26.

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"We remain confident that ZEEL’s fundamentals remain unmatched across the industry, and the company is well equipped to compete as a major player in the sector," Goenka added, expressing optimism about ZEEL's future growth opportunities. He concluded by stating that, with the support of shareholders, ZEEL is poised to return to strong operating levels, generating higher value for stakeholders.

In its latest financial report, ZEEL reported a two-fold increase in consolidated net profit to Rs 58.54 crore for the third quarter ended in December 2023, despite a 2.36 per cent drop in total income to Rs 2,073.36 crore.

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(with PTI inputs)

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Published February 14th, 2024 at 14:20 IST