Zee posts ₹13 cr profit in Q4; board approves organisation restructuring

Zee Entertainment, digital and broadcasting media company, has recorded a profit of ₹13.4 crore in the March quarter of FY24, compared with loss of ₹196 crore in the corresponding period last year. The company saw a 2.7% year-over-year (YoY) increase in operating revenue, reaching ₹2,169.9 crore in Q4FY24, from ₹2,112.1 crore in Q4FY23.

In Q4 FY24, the EBITDA stood at ₹210.3 crore, with a margin of 9.7%, while in Q4 FY23, it was ₹151.7 crore with a margin of 7.2%.The performance in the March quarter of FY24 showed a subdued trend when compared sequentially. In Q3 FY24, the company posted a profit of ₹58.5 crore. The broadcaster's advertising revenue for Q4 FY24 reached ₹1,110.2 crore, marking a rise from ₹1,005.8 crore in Q4 FY23. For the full financial year FY24, Zee's profit amounted to ₹141.43 crore, compared to ₹47.79 crore in FY23. The ad revenue was marginally down to ₹4,057.7 crore from ₹4,057.9 crore.

In FY24, operating revenue rose by 6.8% mainly driven by subscription revenue and other sales and services. However, investments in content and technology impacted the EBITDA margin. In FY24, the EBITDA decreased to 10.5% at ₹907.1 crore, down from ₹1,101.1 crore in FY23."Domestic advertising revenue for the quarter grew by 10.6% YoY driven by the continued recovery in the macro advertising environment and spending pickup by FMCG clients. Other sales and services revenue YoY down 57% due to fewer movie releases and syndication during the quarter," the company states.

“Programming and Technology cost declined YoY. QoQ Programming cost increased primarily due to sports. Zee Music company added 15.8 Mn subscribers during the year on back of new acquisition and catalogue. Total TV viewership improved by 5% YoY,” the company states.

The board of directors has announced a final dividend of ₹1.0 per equity share for the fiscal year ending on 31st March 2024.

The board of Zee also approved  a new and simplified organisational framework proposed by Punit Goenka, Managing Director and CEO. As per the proposed organisation restructuring, Punit Goenka, as MD & CEO, will take direct responsibility for crucial business areas, such as the Domestic Broadcast Business. The CEO has introduced a lateral structure consisting of four main business segments: Broadcast, Digital, Movies, and Music. They will directly oversee critical business verticals. Amit Goenka will maintain his role leading the Digital Business and will also take on additional responsibilities for the International Broadcast Business, Enterprise Technology, and Broadcast Operations & Engineering. Umesh Bansal will lead the movies business, while Anurag Bedi will continue to oversee the music business.

The share price of Zee Entertainment Enterprises ended 1.39% higher at ₹134.95 apiece on the BSE.