ZEE’s Q1 FY2024 ad revenues decline by 2.6% YoY; subscription revenue up 18%

Zee Entertainment Enterprises Ltd (ZEEL) has reported Rs 534 million profit (loss) for the first quarter ended July 31, 2023, against a profit of Rs 1,066 million in Q1 FY2023.

ZEEL’s Domestic Ad revenues came at Rs 9,018 million, QoQ down by 6.4%, and decline by 2.6% YoY. There was muted Ad spending environment as Q1 FY2024 started off on a soft note, with IPL during the first two months of the quarter. However, green shoots emerged towards the quarter end, with early signs of Ad spends starting to pick up, led by FMCGs.

Subscription revenue YoY was up by 18%, driven by pick-up in subscription revenue post NTO 3.0 and ZEE5, which saw a 21% YoY growth in revenue, while QoQ cost base remained steady with prudent cost management. ZEE5, the OTT platform from ZEEL, saw its content continuing to perform well and continued strong engagement.

ZEEL’s EBITDA for the quarter came at Rs 1,549 million, with Q1 FY24 margin at 7.8%.