Zee Ent Q2 Results: Net Profit Jumps 61% YoY, Revenue Slips; Punit Goenka Reappointed As MD & CEO

Zee Entertainment Enterprises Ltd (ZEEL) announced its financial results for the September quarter on Friday, October 18, showcasing a significant rise in net profit and an expansion in profit margins, alongside key corporate updates.

For the second quarter of FY25, Zee reported a 61% increase in net profit, reaching Rs 209 crore, up from Rs 130 crore in the same period last year. However, the company's revenue from operations saw a 19% decline, falling to Rs 2,034 crore from Rs 2,510 crore in Q2FY24.

Despite the drop in total income, Zee's earnings before interest, tax, depreciation, and amortization (EBITDA) showed resilience. The EBITDA fell marginally by 4% to Rs 321 crore but managed to expand its margin by 240 basis points to 16%, compared to 13.6% in the previous year. The company, in its investor presentation, expressed confidence in achieving an industry-leading EBITDA margin of 18% to 20% in the coming quarters.

Zee's digital arm, ZEE5, also made notable progress in narrowing losses. The EBITDA loss for the digital business reduced significantly to Rs 158.8 crore, compared to Rs 265.2 crore last year. The company highlighted that it is making steady strides toward achieving a balanced cost structure to support long-term growth in the digital segment.

Zee Entertainment has reappointed Punit Goenka as Managing Director & Chief Executive Officer (CEO) for a five-year term. His reappointment will take effect from January 1, 2025, and continue until December 31, 2029.

Zee has also announced that the record date for determining the entitlement of shareholders for the final dividend for the fiscal year ending March 31, 2024, is November 8, 2024. If approved by shareholders, the dividend will be paid on or after November 29, 2024.

While Zee's domestic advertising revenue experienced a 9% year-on-year decline, impacted by a sluggish advertising spending environment, the company remains optimistic about a rebound. "The ad spending is picking up with the onset of the festive season, but sustained recovery remains a key focus area," the company noted in its filing.

Zee's shares were trading positively, gaining more than 5% to Rs 131.70 per share on the National Stock Exchange (NSE) as of 3:15 pm. However, the stock has delivered negative returns of over 50% in the last year.