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Zee Entertainment’s Q2 FY25: Navigating challenges, eyeing future growth
Mumbai: When life gets tough, we often turn to movies, music, or binge-watching our favourite shows for comfort. Behind the scenes, it’s a robust balance sheet that keeps the entertainment industry going. For Zee Entertainment Enterprises Limited (Zeel), a pioneer in India’s satellite television space, the latest financial results for Q2 FY25, announced on 18 October 2024, reflect the company’s determined efforts to navigate a challenging economic landscape while driving growth and profitability.
The company reported a profit after tax of Rs 2,095 million, a 61 per cent increase from the same period last year, underscoring its successful cost-reduction strategies. Improved operational efficiencies helped Zee achieve an EBITDA margin of 16 per cent, up from 13.6 per cent in Q2 FY24, even as the broader macroeconomic conditions remained difficult.
Zee’s Q2 FY25 revenue stood at Rs 20,007 million, a decline of 18 per cent YoY, primarily due to a decrease in advertising revenue. The advertising segment experienced a 9 per cent drop YoY, affected by a muted spending environment. This softness in the market reflected the broader industry’s struggle to regain momentum. In contrast, subscription revenue showed resilience, increasing by 8 per cent YoY as the company capitalised on digital content demand and favourable regulatory changes following the NTO 3.0 implementation.
Zee’s network viewership share increased by 100 basis points over the previous quarter, reaching 17.4 per cent, driven by content enhancements across popular channels like Zee TV, Zee Marathi, and Zee Tamil. “We have strengthened our competitive position with a 60 bps network viewership share gain over the past two quarters and are well-positioned to capitalise on the ad spend recovery,” said MD & CEO, Punit Goenka,.
The company’s digital arm, Zee5, continued its positive trajectory, posting a 6 per cent QoQ revenue increase to Rs 2,363 million. Efforts to streamline the cost structure resulted in a reduction of EBITDA losses by Rs 189 million QoQ. Zee’s focus on balancing growth with long-term financial sustainability appears to be bearing fruit, especially in the face of a challenging macroeconomic environment.
Zee’s financial position remained robust, with cash and cash equivalents rising to Rs 17.8 billion as of September 2024, aided by proceeds from the first tranche of foreign currency convertible bonds (FCCBs). Additionally, the company continued its disciplined approach to managing content inventory, which declined by Rs 4.1 billion during H1 FY25 due to strategic content acquisitions and movie releases.
The reduction in operating costs, primarily in programming and technology, contributed significantly to improving the bottom line. As Goenka highlighted, “Our prudent cost discipline and focused execution enabled us to clock a 630 bps improvement in EBITDA margins despite a challenging macro environment.”
Despite Zee’s strong performance on the profitability front, the ongoing struggle with ad revenue remains a concern. The company acknowledges the need for a sustained recovery in advertising spending, especially with the festive season approaching. While ad revenue showed some signs of improvement towards the end of the quarter, broader market recovery will be crucial for sustaining growth.
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Piyush Thakur steps down as Inshorts’ chief revenue officer
Former vice president and cro says exit marks a new chapter after close to a decade of building revenue and partnerships at Inshorts Group.
NOIDA: Piyush Thakur has stepped away from Inshorts Group after nearly 10 years with the company, marking the end of a long tenure that culminated in his role as chief revenue officer.
In a farewell note, Thakur said he was “turning a new page” after almost a decade at Inshorts, calling it one of the hardest professional decisions he has made. He added that his exit was not driven by uncertainty about the future, but by reflection on a long association with the company.
Thakur joined Inshorts in October 2016 as vice president and spent around seven years in the role before being elevated to chief revenue officer in April 2024, a position he held until April 2026.
He said his tenure was defined by “thousands of mornings, late nights, product debates and breakthrough moments”, as the company evolved into a large-scale digital news platform used by millions.
In his note, Thakur emphasised that Inshorts’ growth was a collective effort across teams, adding that engineers, designers, sales teams and customer support staff all contributed to building the platform. He said the company’s success was not the result of individuals but of “everyone who stayed, passed through, and left their mark”.
Before Inshorts, Thakur worked across several digital media and business development roles. At ESPN, he served as senior regional manager from October 2015 to October 2016, focusing on growth initiatives, strategic opportunities and video distribution.
At Times Internet, he worked for nearly three years, including as head of business development from April 2015 to September 2015 and chief manager from January 2013 to March 2015. His responsibilities included monetisation of mobile platforms, managing media and developer partnerships, and driving revenue across digital properties such as The Times of India and The Economic Times.
Earlier, he worked at Brandmovers as head of business development from June 2012 to June 2013, handling digital, mobile and social media marketing solutions, client development and strategic consulting. During this period, he also worked on advertising revenue, brand strategy and CRM-based solutions.
At Inshorts, Thakur’s role focused on revenue strategy, mobile and media partnerships, and growth initiatives across platforms. His profile highlights experience in mobile product management, digital business models, partner ecosystems and revenue expansion in high-growth environments.
