Calculate your SIP ReturnsExplore

Zee Entertainment Q3 Earnings: Consolidated PAT Tumbles 25% YoY

28 September 20234 mins read by Angel One
Zee Entertainment Q3 Earnings: Consolidated PAT Tumbles 25% YoY
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Zee Entertainment published its Q3 earnings report on 2 January 2022. The company witnessed a 25% YoY decline in consolidated net profit as per the report. As a result, its consolidated PAT stood at Rs. 299 crores for the quarter ended 31 December 2021.

During FY 2020-21, Zee Entertainment had posted a net profit of around Rs. 400 crores.

Keep reading to know about this topic.

Tepid Earnings Report for Zee

For this evaluation period, Zee Entertainment’s total income was Rs. 2,130 crores. It was reported as Rs. 2,757 in the same quarter of the previous year.

However, as per Zee, its earnings for Q3 FY 2022 should not be compared with the year-ago period. This is because it has faced severe disruptions in business activity due to the pandemic. Zee Entertainment believes that the tepid quarterly earnings are a direct impact caused by the COVID-19 pandemic.

Mentioned below are a few key highlights of this earnings report:

  • EBITDA plummeted by 24.8% to reach Rs. 479 crores. Its EBITDA margin was also below 330 basis points at 22.7%.

  • Its total expenses stood at Rs. 1,701.04 during the Q3 quarter.

  • Zee Entertainment’s advertisement revenue was Rs. 1,260.80 crores between October to December. It was Rs. 1,302.03 during the previous year’s corresponding quarter.

  • Revenue from subscription stood at Rs. 790.15 crores. The same was around Rs. 841.91 crores during FY 2020-21.

  • The company’s revenue from other sales and services was reported at Rs. 61.69 crores, which was Rs. 585.42 for the previous year’s same quarter.

However, Zee5 witnessed a rise in monthly active users (MAU), which reached 101.9 million. In addition, the company said that it released around 51 TV shows and movies during the quarter.

This entertainment company also attained market share in Hindi GEC backed by new launches. Apart from it, the company also tried to strengthen leadership in Bengali and Kannada.

A Possible Merger

Earlier during a meeting on 21 December 2021, the board of directors of Zee approved a scheme where the company, along with Bangla Entertainment, will merge into Sony Pictures Networks India. Bangla Entertainment holds affiliation with Sony Pictures Networks India Private Ltd.

Both the companies have signed a definitive agreement for the merger and have already combined their digital assets, linear network, programme libraries and product operations.

The company said that this scheme is subject to approval from the Stock Exchanges, Mumbai Bench (NCLT), National Company Law Tribunal and the creditors and shareholders of the company. It may also require approval from other statutory or regulatory bodies, as and when needed.

Bottom Line

Evidently, the Q3 earnings report of Zee Entertainment saw tepid results as compared to that of the previous year. However, the company looks confident with its further plans and course of action.

Following the news of Zee’s Q3 result, its shares closed at Rs. 292.80 on the BSE. This is up by 1.16% from the previous settlement.

Frequently Asked Questions

  1. How much are both companies willing to invest in the merger?

As per a statement made in September 2021, Sony will invest $1.575 billion and acquire a 52.93% stake in the merger. On the other hand, Zee will hold the remaining 47.07% stake.

  1. By what percentage did Zee Entertainment’s consolidated income fall?

Zee Entertainment’s consolidated income decreased by 23%.

  1. When was Zee Entertainment founded?

It was founded on 15 December 1991.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.

Enjoy Zero Brokerage on Equity Delivery
Enjoy Zero Brokerage on Equity Delivery

Get the link to download the App

Send App Link

Enjoy Zero Brokerage on
Equity Delivery