ZEEL gains as Q1 PAT soars to Rs 126 cr

Zee Entertainment Enterprises (ZEEL) rallied 3.17% to Rs 149.70 after the company reported a consolidated net profit (from continuing operations) of Rs 125.66 crore in Q1 FY25, steeply higher than Rs 3.87 crore in Q1 FY24.

However, revenue from operations declined 6.89% to Rs 1,983.80 crore in Q1 FY25 as compared with Rs 2,130.53crore recorded in Q1 FY24.

The company's revenue from Advertisement was at Rs 911.34 crore (down 3.14% YoY), revenue from Subscription stood at Rs 887.83 crore (up 8.78% YoY) and revenue from Other sales and services was at Rs 232 crore (up 71.34% YoY) during the period under review.

 

Domestic advertising revenue for the quarter was impacted by Cricket and general elections. On the other hand subscription revenue growth was driven by pick up in linear subscription revenue post NTO 3.0 & ZEE5. Other sales and services revenue was aided by movie releases and higher syndication, said the company.

Profit before exceptional items and tax zoomed to Rs 208.49 crore in Q1 FY25 as against Rs 71.39 crore reported in Q1 FY24. The company recorded an exceptional loss of Rs 28.60 crore during the quarter.

EBITDA surged 75.3% to Rs 271.7 crore in the quarter ended 30 June 2024. EBITDA margin improved 12.8% in the June quarter as compared to 7.8% registered in Q1 FY24.

Total expenses rose marginally to Rs 1,941.12 crore in Q1 FY25 from Rs 1,926.97 crore posted in Q1 FY24. Advertisement and publicity (A&P) expenses was at Rs 289.57 crore (up 4.41% YoY) and operational cost stood at Rs 1,176.98crore (up 2.95% YoY) during the quarter.

The company said that the increase in operating cost was driven by increase in programming cost partially offset by decline in technology cost. Programming and technology cost declined on QoQ basis, it added.

The firm reported higher A&P and other expenses due to pickup in marketing, primarily led by movie releases.

With respect to its outlook, the company said, While Q1 has already started on a positive note with significant step up in margins, we expect gradual margin improvement to continue through the rest of the year. Overall cost discipline and prudence will continue to hold us in good stead. Magnitude of margin improvement will be dependent on Ad revenue pickup in H2 FY25. FY25 margins to be meaningfully better than FY24. In FY26, the firm aspires to deliver industry-leading 18-20% EBITDA margin.

ZEEL is a media & entertainment company offering entertainment content to diverse audiences. It is present across broadcasting, movies, music, digital, live entertainment, and theatre businesses, both within India and overseas.

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