- 09 May 2025
- ICICIdirect Research
ZEE ENTERTAINMENT AD REVENUES DECLINED 25 PERCENT YOY TO RS 838 CRORE
ZEEL - 123 Change: 6.01 (5.13 %)News: Zee Entertainment ad revenues declined 25% YoY to ₹ 838 crore, with domestic ad decline of ~27% YoY given the weak ad environment, sports heavy season and Zee Cine awards postponement. The overall subscription revenues were up 4% YoY to ₹ 987 crore. Overall Zee5 revenues at ₹ 275 crore, was up 16% YoY, aided by syndication revenues. EBITDA came in at ₹ 285 crore, up 36% YoY basis, with margins at 13.1% (up 340 bps YoY and down 300 bps QoQ) due to lower Zee5 losses YoY. PAT was at ₹ 188 crore.
View: Going ahead, market share recovery Marathi/Tamil along with flagship Hindi channels (important for ad growth), will be the key monitorable. The company has embarked on improvement of margin (guided for margin of 18-20% with 8-10% revenue CAGR). But sustained revenue growth recovery amidst competition will be tough ask going ahead.
Impact: Neutral