Media company Zee Entertainment is expecting gradual recovery in ad spends after the company reported 2.6 percent year-on-year (YoY) decline in ad revenues at Rs 901.8 crore in the June quarter of financial year 2024.
"We saw some green shoots in June and July. So, there are early signs of ad spends picking up esp in FMCG which is a 60 percent contributor. At this point of time, we are not in a position to give a robust growth picture. We expect the positive momentum to continue. In the festive season, we will see ad recovery," said Rohit Gupta, Chief Financial Officer of Zee Entertainment during an investor call.
TV channels saw a weak ad environment due to lower spend by new age and e-commerce firms along with muted growth in ad spends by FMCG companies.
On the merger front, the management said that they are awaiting an order from National Company Law Tribunal (NCLT) that will pronounce its order on Zee's merger with Sony on August 10.
"Punit Goenka has clarified that his case and the merger are two different things. Apart from the clause which states that he is an integral part of the merged company, there is no other change in any other clause. We are hopeful that there will be no major impediment towards the conclusion of the merger," the company's management said.
Zee Entertainment on September 22 announced a merger with Sony Pictures Networks India (SPNI) with the company highlighting that SPNI had agreed that the appointment of Punit Goenka as MD and CEO of the company was an integral part of the deal.
The Securities and Exchange Board of India, in an interim order on June 12, had banned Essel Group chairman Subhash Chandra and his son Punit Goenka from holding any directorial or key managerial position for siphoning funds from Zee for their own benefit.
The proposed merger of Zee with SPNI is at a "very important juncture", and its completion is "in the interest of all stakeholders," Goenka told Zee employees in a letter dated July 17.
The completion of the Zee-Sony merger has been "my top priority", Goenka had stated.
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