Zee Entertainment Q3 Profit Triples Despite Revenue Dip

25 Jan 2025 , 12:26 AM

Zee Entertainment Ltd. announced its Q3 FY25 results on Thursday, January 23. Revenue decline notwithstanding, the net profit jumped three times. Net profit rose to ₹163.6 crore from ₹53.3 crore in the same period last fiscal year, largely on account of good linear subscription revenue growth and the strong performance of ZEE5.

Operating revenue fell 3% YoY from ₹2,046 crore to ₹1,979 crore last fiscal. Revenue declined, which was headed by a soft festive season and sustained consumption slowdown, as FMCG ad spends took the hit. Ad revenues were down 8% YoY but had improved 4% sequentially. Subscription revenue at ₹86.6 crore was complemented by other sales and services at ₹20.8 crore.

Strong cost management along with healthy growth in subscription revenues helped to build the performance of the company: EBITDA increased 52% YoY to ₹318 crore from ₹209 crore in the same year ago. EBITDA margins expanded 590 basis points to 16.1% from 10.2% in the preceding year.
Zee’s effective cost management and growth in subscription revenue have significantly contributed to profitability despite the lack of growth in the advertising segment. The results depict the company’s focus on operational efficiency and diversified revenue streams.