ZEEL Profit Jumps 2-Fold to Rs 58cr in Q3 FY24

New Delhi, Feb 13 (PTI) Zee Entertainment Enterprise Ltd on Tuesday reported a twofold increase in consolidated net profit to Rs 58.54 crore for the third quarter ended in December 2023.

The company had posted a net profit of Rs 24.32 crore in the October-December quarter a year ago, according to a regulatory filing from Zee Entertainment Enterprise Ltd (ZEEL).

Its total income dropped by 2.36 per cent to Rs 2,073.36 crore during the quarter under review compared to Rs 2,123.56 crore in the corresponding quarter.

Total expenses were at Rs 1,930.98 crore, up 5.31 per cent in the December quarter of FY24.

During the quarter, ZEEL revenue from advertising was down 3.4 per cent to Rs 1,027.38 crore. It was at Rs 1,063.36 crore a year ago.

"Domestic Ad revenue was impacted by cricket during Q3. While Q3 saw some seasonal festive uptick, the overall pace of Ad environment recovery continues to be slow," said ZEEL in its earning statement.

However, its subscription revenue was up 3 per cent to Rs 921.25 crore. It was Rs 894.49 crore in the corresponding quarter.

"Q3 FY23 subscription revenues were aided by recognition of Rs 59 crores amount from Siti Network," it added.

While its revenue from others segment was down 35.73 crore to Rs 97.04 crore.

This was "due to fewer movie releases during the quarter," it said.

ZEEL said that it spent Rs 60.34 crore on its proposed merger Culver Max (formerly Sony Picture India) and BEPL (Bangla Entertainment Pvt Ltd). Sony group last month called off the merger.

Overall Rs 250.73 crore were spent on the merger in the nine months of FY24. It had spent Rs 176.20 crore in FY23 for the deal, announced in December 2021.

With this, the total money spent by Zee is Rs 426.93 crore. After signing an agreement, ZEEL was racing to receive a series of regulatory clearances from SEBI, CCI, ROC, etc.

On the outlook, ZEEL said India's M&E industry is poised for sustained long-term growth given rising income levels and relatively lower spending compared to the global norm.

"It is well positioned to capitalize on growth opportunities," it said.

Shares of Zee Entertainment Enterprise Ltd on Tuesday settled at Rs 188.60 on BSE, down 0.77 per cent from the previous close.