Zee Entertainment Enterprises reported a 91 per cent year-on-year decline in profits during the third quarter of the current fiscal. For the December quarter, the entertainment company reported a profit of ₹24.3 crore, after reporting a profit of ₹298.73 crore same time last year. 

Zee struggled to grow its revenues, and total income remained stable at ₹2,127 crore in Q3FY23 versus ₹2,130 crore in Q3FY24. 

The EBITDA fell to ₹33.80 crore in Q3FY23 compared to ₹47.93 crore in Q3FY22, representing a fall of 29.5 per cent YoY. The EBITDA margin fell to 16 per cent in Q3FY23 compared to 22.7 per cent in Q3FY22. Zee Entertainment said its fall in EBITDA was impacted by slower growth in revenue and elevated investment in content, marketing, and technology.

Also read: Media & entertainment industry projected to grow 12-14% in FY24

The company said its domestic ad revenues came at ₹101.54 crore, QoQ up by 5.7 per cent, YoY declined by 15.8 per cent and its Ad Revenue YoY growth was impacted due to FTA withdrawal (Zee Anmol) and a slowdown in FMCG spending due to the challenging macroeconomic environment.

Zee Entertainment said its subscription revenue YoY was up 11.2 per cent, aided by underlying organic growth in Zee5, Zee Music and by recognition of subscription revenue from the Siti network and other sales and services revenue YoY was up 148 per cent aided by higher syndication revenue. The theatrical performance continues to be soft.

Regarding Zee’s merger with Sony Pictures Networks India Limited, the company added that after receiving requisite approvals and NOCs from the Securities and Exchange Board of India (SEBI), Competition Commission of India (CCI), and Registrars of Companies (ROC) the company has filed a petition with the National Company Law Tribunal (NCLT) for approval.

Also read: IDBI, Axis, IndusInd object to Zee-Sony merger

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