Mumbai : Zee Entertainment Enterprises Ltd (Zeel ) posted a 92 per cent drop in fiscal third-quarter net profit at Rs 24.3 crore, from Rs 298.7 crore a year ago.
Total income during the quarter under review was flat at Rs 2,127 crore as against Rs 2,130 crore in the corresponding quarter of last year.
On other side, Zee5 saw a healthy momentum. Zee5's YoY Q3 FY23 revenue growth was Rs 194.3 crore. Zee5’s global MAUs was 119.5 million, increased by 17.6 million YoY.
The company's operating profit suffered as a result of slower revenue growth and increased investments in content, marketing, and technology.
EBITDA (earnings before interest, tax, depreciation, and amortisation) was Rs 338 crore in the third quarter, a 29.5 per cent decrease from the previous year. In the previous year, it was Rs 479 crore.
EBITDA margins fell to 16 per cent in the December quarter, down from 23 per cent the previous year.
Domestic advertising revenues were Rs 1,015 crore during the quarter, down 16 per cent year on year, primarily due to FTA withdrawal (Zee Anmol) and a slowdown in FMCG spending due to the challenging macroeconomic environment.
Subscription revenue increased 11.2 per cent year on year, aided by underlying organic growth in video streaming platform ZEE5, Zee Music, and recognition of subscription revenue from Siti Network, an Essel Group-backed multi-system operator.
Other sales and services revenue YoY up 148 per cent aided by higher syndication revenue. Theatrical performance continues to be soft.
Programming and Technology cost increased YoY due to higher content cost in movies and linear, and continued investment in Zee5.
New content launches and theatrical releases increased the marketing cost on a YoY basis. QoQ A&P spend moderates from high base of Q2 which had heightened spending due to big ticket movies.
In terms of the domestic linear television network, Zee had a 16.2 per cent share, down from 16.4 per cent in Q2. The firm's weekly reach remained at 28.2 million as it seeks to strengthen its market position in Bangla, Odia, Telugu, and Kannada.
