ZEE Entertainment Reports Q4 Net Loss of Rs 196 Crore; Total Income Declines by 10%
- ByStartupStory | May 27, 2023
On March 31, 2023, Zee Entertainment Enterprises recorded a consolidated net loss of Rs 196.03 crore in the fourth quarter. The company’s margins were negatively affected by rising costs and exceptional items, resulting in a decline from the net profit of Rs 181.93 crore reported during the same quarter last year. This information was disclosed by Zee Entertainment Enterprise Ltd (ZEEL) in a filing with the Bombay Stock Exchange (BSE).
During the quarter under review, Zee Entertainment Enterprises experienced a 9.89% decrease in total income, amounting to Rs 2,126.35 crore. This is in comparison to the corresponding quarter a year ago. “Ad spending slowdown, investment in ZEE5, movie launches and sports impact operating performance,” said ZEEL in its earnings statement.
In the March quarter, expenses reached Rs 2,083.36 crore, registering a growth of 9.95%. However, the advertisement revenue for the same period declined by 10.17% to Rs 1,005.77 crore.
“Ad revenue YoY growth impacted due to FTA withdrawal (Zee Anmol) and a slowdown in ad spending,” said ZEEL.
In the fourth quarter, ZEEL’s subscription revenue remained relatively stable at Rs 847.42 crore, compared to Rs 854.86 crore in Q4 FY22. The company experienced growth in subscription revenue from its OTT platform ZEE5; however, this increase was offset by a decline in linear TV subscription. ZEEL also witnessed a decrease of 25.5% in revenue from ‘other sales and services’, amounting to Rs 258.92 crore.
Additionally, ZEEL’s operating cost rose as a result of increased programming and technology expenses, attributed to higher content costs in movies, investments in ZEE5, and sports. In the fiscal year ending March 2023, the company’s net profit experienced a significant decline of 95%, amounting to Rs 47.99 crore. Comparatively, ZEEL had reported a net profit of Rs 955.77 crore in FY22. The decrease in net profit was primarily due to a decline in revenue and increased strategic investments across the business. Furthermore, the consolidated revenue from operations for FY23 declined by 7.7% to Rs 4,057.89 crore.
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