Zee Ent Q3 Profit Falls 5% YoY to Rs 155 Cr
Zee Entertainment Enterprises (ZEEL) has reported a 5% year-on-year decline in its consolidated net profit for the December quarter, amounting to Rs 155 crore, down from Rs 164 crore in the same period last year. This profit after tax (PAT) is allocated to the shareholders of the company.
Financial Performance Highlights
– Total Revenue: Rs 2,280 crore in Q3FY26, marking a 15% increase year-on-year compared to Rs 1,979 crore in Q3FY25.
– Revenue from Operations: Stood at Rs 2,149 crore, a 17% rise from Rs 1,836 crore in the previous year.
– Quarter-over-Quarter Growth: PAT surged 103% QoQ from Rs 76 crore in Q2FY26, while the topline grew 9% from Rs 1,969 crore in Q2FY26.
Expenditures and Costs
– Total Expenses: Rs 2,087 crore, representing an 11% increase from Rs 1,880 crore in Q2FY26 and a 20% rise year-on-year from Rs 1,735 crore in Q3FY25.
– Breakdown of Expenses: Costs included operational expenses, employee benefits, and finance costs.
Following the Q3 earnings announcement, Zee Entertainment shares rose by 4.3%, reaching a peak of Rs 85.50 on the BSE.
EBITDA Performance
– EBITDA: The company recorded an EBITDA of Rs 241 crore, demonstrating a 24% decline year-on-year but a significant 64% increase quarter-on-quarter.
– EBITDA Margin: Improved to 16.1% in Q3FY26 from 7.4% in Q2FY26, compared to 10.5% in Q3FY25.
Segment Revenue Breakdown
1. Advertising Revenue: Rs 852 crore, up from Rs 806 crore in Q2FY26 but down from Rs 941 crore in Q3FY25.
2. Subscription Revenue: Rs 1,050 crore, up from Rs 1,023 crore in Q2FY26 and Rs 983 crore in Q3FY25.
3. Other Sales and Services: Amounted to Rs 378 crore, increasing from Rs 140 crore in Q2FY26 but down from Rs 557 crore in Q3FY25.
Market Challenges
ZEEL noted that a slowdown in FMCG spending has negatively impacted domestic advertising revenue, which fell by 10% YoY. Despite the challenges, the company remains optimistic about a revival in brand-building expenditures. The growth in digital revenue played a vital role in boosting subscription figures, while the increase in other sales was primarily driven by the distribution rights of two blockbuster films.
Conclusion
In summary, Zee Entertainment’s Q3 results indicate resilience amid market headwinds, with notable growth in revenues despite a decline in profit. The company is poised to explore avenues for recovery in advertising spends while capitalizing on its digital strengths aimed at enhancing subscription growth. The decline in profit highlights the challenges faced but also underscores opportunities for strategic realignment in response to market dynamics.