Zee reaches 400 million with FIFA World Cup as Q1 profit falls

MUMBAI: Zee has found its football audience, but the numbers behind the goal are more mixed. Zee Entertainment Enterprises Ltd (ZEEL) said the FIFA World Cup 2026 reached more than 400 million consumers in India across its television and digital platforms during the first quarter of FY27, even as profit declined amid weaker advertising revenue and higher expenses.

The tournament was part of Zee’s sports strategy after the broadcaster secured the FIFA rights in a deal estimated at around $40 million. CEO Punit Goenka highlighted the reach during the company’s Q1 FY27 earnings call while signalling a more cautious approach to future sports investments.

Goenka said Zee’s focus would be on value delivery and financial sustainability, rather than chasing expensive sports properties simply for their scale.

The FIFA reach gives the broadcaster a tangible measure of its investment, although Zee did not directly attribute its financial performance or ZEE5 growth to the tournament.

The OTT platform recorded its third consecutive quarter of profitable growth, with revenue rising 58 per cent year-on-year. At the company level, however, the quarter was less celebratory.

ZEEL’s total income increased 4.8 per cent to Rs 1,938.5 crore in Q1 FY27 from Rs 1,849.8 crore a year earlier. Subscription revenue provided some cushion, rising 15.8 per cent to Rs 1,136.9 crore.

Advertising, meanwhile, moved in the opposite direction. Revenue declined 11.5 per cent to Rs 671.4 crore from Rs 758.5 crore, despite advertisement and publicity expenses jumping 62.3 per cent to Rs 446.8 crore from Rs 275.2 crore.

The higher spending did not translate into a stronger bottom line. Profit for the period fell to Rs 74.3 crore from Rs 143.7 crore in the year-ago quarter, while total expenses increased 12.8 per cent to Rs 1,864.4 crore.

The company is also widening its bets beyond conventional television and sports. Zee is expanding into micro-dramas, kids’ entertainment, live events, VFX and animation, while its network recorded an all-time-high viewer share of 20 per cent during the quarter.

For Zee, therefore, the FIFA numbers offer a sizeable audience win, but the earnings tell a more complicated story. The broadcaster’s next sporting move is likely to be judged less by how big the trophy is and more by whether the numbers add up after the final whistle.