Zee Entertainment Q2 net profit rises 61% to Rs 209 cr, stock jumps 5%

The company also said the record date for determining the entitlement of members for the final dividend for the financial year ended March 31, 2024 is November 8, 2024. The dividend, if approved by the shareholders will be paid on or after November 29, 2024, it said.

"Domestic advertising revenue for the quarter declined by 9% YoY, impacted by muted ad spending environment in Q2. While ad spending is picking up with onset of festive season, sustained recovery remains the key," said the company in a stock exchange filing.

Q2FY25 EBITDA margin was at 16%, a sequential rise of 320 bps as effective cost management aided the profitability, said ZEEL.

"Prudent cost discipline and focused execution has enabled us to clock 630 bps improvement in EBITDA margins in a challenging macro environment. Significant progress has been made towards achieving a balanced cost structure, to sustain long-term growth in ZEE5," added ZEEL.

Zee, whose $10 billion merger with Sony's Indian unit fell through earlier this year, reported a core profit margin of 16% for the quarter ended Sept. 30, compared to 13.6% a year ago, as expenses fell 20%.

Since the deal's collapse, Zee implemented a slew of measures to reduce costs and losses in its businesses, including cutting 15% of its workforce. Zee is targeting a margin of 18%-20% for fiscal year 2026, it said in May.

Advertisement revenue, which makes up nearly half of the total, dropped 7.9%, its ninth quarterly decline in ten.

Zee's subscription revenue grew 9.3% to Rs 970 crore, helped by the implementation of a new tariff order which gave broadcasters more leeway to increase prices of TV channels.

With inputs from Reuters