Zee Entertainment Enterprises on August 12 reported a consolidated profit of Rs 106.60 crore for the quarter ended June FY23, down 49 percent compared to the year-ago period. The decline in profit was due to weak operating performance and moderate top-line growth.
Profit in corresponding period of last fiscal stood at Rs 208.8 crore. The sequential decline in profit was 41.4 percent.
Consolidated revenue for the June FY23 quarter grew by 4 percent to Rs 1,845.74 crore compared to the year-ago period, while on a quarter-on-quarter basis, there was a 20.5 percent fall in revenue, the company said in its BSE filing.
The company reported a 5.4 percent year-on-year growth in advertising business at Rs 976.3 crore for the June FY23 quarter, but the subscription business fell 5 percent to Rs 771.7 crore compared to the year-ago period.
Zee said advertising revenue growth for the quarter impacted by FTA withdrawal (Zee Anmol) and lower advertising spends by brands due to weak macroeconomic conditions, while pricing embargo continued to impact linear revenue growth in subscription business.
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At the operating level, EBITDA was down by 29.5 percent YoY to Rs 235.8 crore and margin fell by 606 bps YoY to 12.77 percent for the quarter ended June FY23, with a significant increase in operational cost and advertising and publicity expenses which increased by 16 percent and 33 percent YoY, respectively.
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Programming and technology cost was higher on a YoY basis, due to higher theatrical releases, investment in Zee5 and new launches in linear business, while the increase in marketing cost on a YoY basis was on account of new launches in linear business and continued investments in ZEE5, Zee said.
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