ZEEL net profit dips 5.3% to ₹130 cr in Q2

New Delhi: Media and entertainment company Zee Entertainment Enterprises Limited (ZEEL) on Thursday posted a 9% year-on-year increase in its consolidated net profit to ₹123 crore.

The company’s operating revenue stood at ₹2437.8 crore as compared to ₹2023.9 crore a year ago.

Domestic ad revenues came to ₹941.1 crore, up by 4.4% quarter-on-quarter, but declined by 2.1% year-on-year. While some early pick up in ad spending was witnessed led by the FMCG category during the second quarter, overall pace of ad environment recovery continues to be slow, the company said. It added that advertising revenues are also impacted by the busy cricket season including the Asia Cup and ICC World Cup tournaments.

Subscription revenues rose 8% year-on-year, driven by a pick-up in linear subscription revenue post-NTO 3.0 (new tariff order) and ZEE5, the company’s video streaming platform.

Other sales and services revenue rose 201% year-on-year, aided by higher syndication and strong theatrical performance of movies.

As of Q2 FY24, Zee commands 17.9% of the country’s linear television network share and total operating revenues for the segment increased by 20.5%. Weekly linear TV reach touched 764 million during the quarter while weekly impressions stood at 29.4 billion.

Meanwhile, ZEE5 recorded 59% revenue growth year-on-year with 22 shows and movies, including four originals, released during the period. Titles like Kashmir Files Unreported and Haddi were released on the service over the past quarter while those like Duranga and Gadar 2 are slated to stream in the coming quarter.

Period drama Gadar 2 produced by Zee Studios that released in cinemas over the quarter is the company’s highest gross box office collecting title. Other language films such as Bro, King Of Kotha and Skanda also hit screens, the company said.