Zee Reports Q1 FY25 Profit: Increased Subscription Revenue

On wednesday, Zee Entertainment Ltd reported a consolidated net profit of Rs 118 crore for the quarter ending June 30, 2024 (Q1 FY25), reversing a loss of Rs 53.42 crore from the same period last year. The company’s subscription revenue grew by 8.78% year-on-year, reaching Rs 987,.17 crore, up from Rs 907.49 crore.

In the reported quarter, advertising revenue declined by 3%, an improvement from the 4% decrease seen in the same period last year. Margins increased 13%, up from 8% the previous year. 

"Other sales and services during the quarter were aided by movie releases and higher syndication. Increase in operating cost YoY was driven by increase in programming cost partially offset by decline in technology cost," the company mentioned.

"We expect gradual margin improvement to continue through the rest of the year," it added.

On the stock-specific front, Zee shares jumped 5.76 per cent to hit a day high of Rs 153.45 crore after the quarterly earnings were out.

"EBITDA increased 75.3 per cent YoY to Rs 271.7 crore (PLe Rs 246.1 crore, CE Rs 222.4 crore) with a margin 12.8 per cent (PLe 11.6 per cent) aided by fall in employee benefit expenses amid the ongoing restructuring exercise and reduction in ZEE5's losses," said Prabhudas Lilladher (PL).

"We currently have a 'Hold' rating on Zee with a target price of Rs 160," it added.