Zee Entertainment Enterprises Ltd on January 23 reported 180% jump in net profit at Rs 164 crore for the quarter ended December 31, 2024. It reported net profit of Rs 58.5 crore in the year-ago period.
The media firm's total income declined 3% to Rs 2,103 crore in Q3FY25 as compared to Rs 2,073 crore in Q3FY24.
At 3 pm on January 23, ZEEL shares were trading over 3% higher at Rs 121.85 apiece.
"Revenue growth during the quarter was impacted due to delay in the renewal of a B2B deal. Renewal discussions are underway. Expect performance improvement momentum to sustain with growth providing some operating leverage," said ZEEL in a stock exchange filing.
The company flagged lower FMCG ad spending during the quarter.
"Effectively navigated a weak festive season and continued softness in advertising environment by focused execution. Advertising revenue for the quarter improved by 4% QoQ, and declined by 8% YoY due to sluggish festive season. Sustained consumption slowdown is resulting in lower FMCG ad spending," said ZEEL.
In the nine months of FY25, advertising revenue fell 7% to Rs 2,753.6 crore while subscription revenue grew by 8% at Rs 2,939.6 crore.
Analysts had also said that ZEEL’s performance will be impacted by weakness in the advertising environment and the drop in ad revenue is in line with expectations.
The company's subscription revenue for the quarter increased 7% at Rs 982.5 crore and the company said that this growth is driven by both linear subscription revenue and ZEE5, the streaming arm of the company.
On the international front, Zee's Q3FY25 advertising revenue stood at Rs 60 crore and subscription revenue at Rs 86.6 crore.
The channel's network share declined to 16.9% from 16.5% and weekly reach in Q3 FY25 fell to 74.6 crore from 75.7 crore.
Along with the Q3FY25 financial results, the Board of Directors of the Company in its meeting held on January 23 approved the appointment of Divya Karani as an Additional Director in the category of Independent Director of the Company for a period of 3 years with effect from January 23, 2025 based on the recommendation of the Nomination & Remuneration Committee and subject to the approval of the Ministry of Information and Broadcasting and shareholders of the Company.
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