Mumbai: Zee Enterprise Entertainment on Friday reported that second quarter revenue grew by 2.5 per cent to Rs 20,284 million compared to the same quarter in the previous fiscal. Q2 FY23 Ebitda (earnings before interest, taxes, depreciation, and amortisation) was down 28 per cent to Rs 2,973 million. It was impacted by slower growth in revenue and elevated investment in content, marketing, and technology. Ebitda margin was 14.7 per cent compared to 20.8 per cent for the same quarter in the previous fiscal. Profit after tax (PAT) fell by 58.3 per cent to Rs 1,128 million. Profit Before Tax fell by 50.7 per cent to $1,769 million.

It said that a challenging macroeconomic environment continues to impact operating performance. Domestic ad revenues came in at Rs. 9,610 million, a decline of 7.7 per cent. Ad revenue growth was hampered by FTA withdrawal (Zee Anmol) and a difficult macroeconomic environment. Other sales and services revenue YoY is up 92 per cent aided by theatrical revenues and other syndication deals. Programming and technology costs increased due to higher theatrical releases, investments in Zee5 and higher programming hours in the linear business. Subscription revenue was up 4.2 per cent compared to the same quarter in the previous fiscal year.

Q2 FY23 subscription revenues were aided by catch-up revenue from the previous quarter in the linear business and underlying organic growth in Zeee5 and music subscription revenues. Other sales and services revenue was up by 92 per cent aided by theatrical revenues and other syndication deals. The increase in marketing costs on a YoY basis is on account of new content launches and higher theatrical releases. Internationally, in Q2 FY23 ad revenue was Rs 518 million and subscription revenue was Rs 1,060 million.

It stated that it would continue to invest in ZeeTV, Zee Marathi, Zee Tamil, and Movies in order to increase market share.

Further, it strengthened its market position in Bangla, Odiya, Telugu and in the Kannada market. Q2 FY23 all-India TV network share was 16 per cent. QoQ it was up by 30 bps.

Its OTT platform Zee5 reported Q2 revenues of Rs1,671 million, marking a 28 per cent growth over the same period in the previous fiscal. Zee5 global MAUs in Q2 FY23 were 112.4 million. This was an increase of 19 million over the same period in the previous fiscal year. The average watch time per month in Q2 FY23 was 198 minutes, an increase of 12 minutes over the same period in the previous fiscal. Over 66 shows and movies (including six originals) were released during the quarter.

For Zee Studio, four Hindi and six regional movies were released during the quarter. Zeel also said that Zee Music Company is the second-largest music label with 89 million subscribers on YouTube.