Zee Entertainment Net Slumps 43%; Ad Revenue Lower Than Subscription

Subhash Chandra

Subhash Chandra-promoted Zee Entertainment Enterprises Ltd, broadcaster of Zee TV, today said consolidated net profit for the quarter ended 30 June was down 43% year-on-year at Rs91.32 crore. Total revenue was down 12% y-o-y at Rs475.93 crore. Continuing the trend from the quarter ended 31 March, revenue from advertising is lower than revenue from subscription. While revenue from advertising was down 29% y-o-y at Rs197.96 crore, subscription revenue grew 12% y-o-y to Rs240.98 crore.

Zee achieved significant savings on the cost front. Total expenditure was down 9% to Rs366.42 crore. Staff cost is down 43%, suggesting significant reductions in headcount and compensation. The consolidated numbers include those of Taj TV Ltd, ETC Networks Ltd and Zee Turner Ltd. On a standalone basis, net profit was down 45% y-o-y to Rs71.27 crore. Total expenditure was down 34% (staff costs down 65.5%!) while total income was down 28% at Rs238.93 crore.

Full results. Press release.

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