MUMBAI: A sharp focus on its expenditure and tight cost controls have resulted in Zee Entertainment Enterprises Ltd (Zeel) notching up a respectable showing in its latest quarter FY2025 results as well as for the nine months of FY2025. The net result: there has been a growth in profitability despite revenues slipping because of a challenging advertising environment.
The company’s operating revenue for Q3 2025 ended 31 December 2024 stood at Rs 19,788 million, reflecting a three per cent decline year-over-year (YoY) due to a weak festive season and lower advertising revenues.
In the investor call which followed, CEO Punit Goenka confessed that “the green shoots we witnessed during the beginning of the quarter did not pick up the required pace to drive a positive growth momentum. This, coupled with muted spending by FMCG brands in a festive quarter, further slowed the pace of growth for the industry at large, although there was a marginal pickup in the rural recovery. The lacklustre sentiment in the urban market led to weaker demand November and December. This, in turn, also impacted our advertising revenue during the quarter.”
Punit, however, expressed optimism of a recovery in the coming months. Said he: “Going forward, we are hopeful that the upcoming union budget will encompass pertinent steps by the honorable finance minister to revive the consumption cycle in order to spur growth. On the back of these factors, we remain optimistic about a gradual recovery in the new fiscal that will enable us to capitalise on the increased spending by advertisers.”
Added deputy CEO & CFO Mukund Galgali: “The TV industry landscape remains healthy, and the overall industry wide TV viewership has increased by 1.4 per cent further. We continue to be strong, number two entertainment network in India, and we have gained 40 BPS share to 16.9 per cent as compared to the same period last year. And as Punit mentioned again, Zee Marathi has shown a consistent progress four car intervention. And Zee Tamil has also gained healthy share on a year on year basis compared to the same period last year. on the digital side, Zee5 has further narrowed its operating losses in this quarter. Its EBITDA loss is lower by Rs 22.6 crores in QoQ and Rs 107.8 crore YoY basis. A B2B deal which is still being discussed and was not renewed impacted our top line for Zee5.”
In contrast to ad revenues, subscription revenues grew by seven per cent year on year to Rs 9,406 million driven by linear TV and digital platform Zee5. EBITDA for Q3 FY25 increased by 52 per cent YoY to Rs 3,184 million, with a margin of 16.1 per cent (up from 10.2 per cent in Q3 FY24). Profit after tax (PAT) from continuing operations rose by 207 per cent YoY to Rs 1,636 million, underscoring effective cost management and operational efficiency. Total expenditure decreased by 10 per cent YoY to Rs 16,604 million, driven by optimised programming and technology costs.
For the nine month period ended 31 December for FY25, total revenue was at Rs 61,100 million a six per cent decline YoY, while expenditure decreased 10 per cent, reflecting disciplined cost control. EBITDA for 9M FY25 rose by 31 per cent YoY to Rs 9,110 million, with margins improving to 14.9 per cent (up 410 basis points YoY). PAT from continuing operations increased by 167 per cent YoY to Rs 4,988 million.
Zee Network’s TV viewership share grew by 40 basis points YoY, driven by strong performances in Hindi movies and Marathi content. New show launches like Jaane Anjaane Hum Mile (Zee TV) and Lakshmi Nivas (Zee Marathi) contributed to the viewership growth. Zee5 recorded an eight per cent YoY revenue growth in Q3 FY25, releasing 14 shows and movies, including seven originals. EBITDA losses for Zee5 reduced significantly YoY, reflecting better cost structures. Zee Music Company remained the second-largest music label with 160 million YouTube subscribers, adding 3.6 million during the quarter. The channel clocked 43 billion video views during Q3 FY 2025. Zee Studios released five films in Q3, including two Hindi and three regional movies.
The company spent a lot more this quarter on promoting its shows as well as on building its brand following the collapse of the merger with Sony. Its advertisement and promotion expenses stood at Rs 2826 million in Q3FY25 as against Rs 2275 million in the previous quarter and Rs 2065 million Q3 FY 2024. In the 9 months in FY2025, it has spent Rs 7725 million as against Rs 6963 million in 9m FY2024.
The company also announced the appointment of media veteran Divya Karani as an additional director in the category of independent director for three years with effect from 23 January 2025 based on the recommendation of the nomination & remuneration committee and subject to the approval of the ministry of information and broadcasting and shareholders of the Company. Finally, Zeel’s sustainability efforts saw a 33 per cent reduction in waste sent to landfills and an 11 per cent decrease in daily carbon emissions during FY24.
