Now Reading: Zee Entertainment Q1 profit halves to Rs 76 crore, ad revenue down 12%
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Zee Entertainment Q1 profit halves to Rs 76 crore, ad revenue down 12%
Zee Entertainment Q1 profit halves to Rs 76 crore, ad revenue down 12%
Zee Entertainment reported a 47% drop in net profit to Rs 76 crore for the April-June quarter, compared with Rs 144 crore a year ago, according to an exchange filing. Revenue rose…
The Story in Brief
Zee Entertainment reported a 47% drop in net profit to Rs 76 crore for the April-June quarter, compared with Rs 144 crore a year ago, according to an exchange filing. Revenue rose 4.5% to Rs 1,908 crore, driven by a 16% increase in subscription income to Rs 1,137 crore. However, advertising revenue slumped 12% to Rs 671 crore, pulling down profitability.
Operating profit (Ebitda) fell 58% to Rs 101 crore, shrinking the margin to 5.3% from 13.1%. The stock closed flat at Rs 94.42, down 16% from a year ago. The company's market capitalisation stands at Rs 11,156 crore.
The Indian Opinion
The headline numbers look bad, but the rush to call this a crisis misses the shift in media consumption. Ad revenue is cyclical, elections and weddings in the base quarter inflated last year's figures. Subscription revenue growing 16% shows viewers are still paying for content, even if advertisers are cautious. The real test will be the next two quarters: if ad revenue fails to bounce back during the festive season, then management's strategy needs a serious rethink. Will the board commit to a clear growth plan at the next earnings call?
Source: ndtvprofit.com
This story was synthesised by AI from the source linked above.
