Zee Entertainment Q3 Results: Net profit up 180%, revenue down 3%; shares trade higher

Zee Entertainment Enterprises Ltd (ZEEL) announced its financial results for the third quarter of the current financial year (Q3 FY25) on Thursday, reporting a 180% surge in its consolidated net profit at ₹164 crore as compared to ₹58.5 crore in Q3 FY24. On a sequential basis, the company's net profit fell down by 22% from ₹209.4 crore in the previous quarter.

The Mumbai-based media conglomerate posted a total income of ₹2,103 crore, down 3% when compared to ₹2,073 crore in Q3FY24.

"Revenue growth during the quarter was impacted due to a delay in the renewal of a B2B deal. Renewal discussions are underway. Expect performance improvement momentum to sustain with growth providing some operating leverage," ZEEL said in an exchange filing.

Shares of the company ended 2.37% up at ₹120.75 apiece on the NSE on Thursday, January 23. The stock was trading higher by nearly 3% at around 3 pm following the results announcement. ZEEL’s market capitalisation stands at ₹11,510.86 crore.

ZEEL Q3 Results: Major highlights

• Consolidated revenue from operations of the company fell by 8.4% to ₹940.6 crore from ₹1,027.4 crore posted in the year-ago period. Sequentially, profit after tax saw a growth of 4.3% as compared to ₹901.7 crore in Q2 FY25.

• Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of the company saw a 52.4% growth, rising from ₹209 crore last year to ₹318.4 crore in the reporting quarter. EBITDA margin grew by 590 basis points to 16.1% from 10.2% in the year-ago period.

• Advertising revenue of the company increased by 4% quarter-on-quarter (QoQ) but was down by 8% year-on-year (YoY) on the back of a slow festive season.

• The company's subscription revenue for Q3 FY25 was up by 7% at ₹982.5 crore fueled by both linear subscription revenue and from its streaming platform ZEE5.

• ZEEL’s subscription revenue, in the international market, was at ₹86.6 crore, while its other sales and services revenue stood at ₹20.8 crore.

• The company's total expenses stood at ₹1,734.7 crore in Q3FY25, down 10.17% from ₹1,931.1 crore reported last year.

• Zee Entertainment's Q3 FY25 all-India TV network share grew by 40 bps on a YoY basis.