Transcript of the conference call
Awaiting price reaction for this filing.
Zee Entertainment reported FY'25 results with advertising revenue declining 11% year-on-year due to a weak macro environment, while subscription revenue grew 7% helped by NTO 3.0 and digital growth. Overall operating costs fell 8%, driving a 390 basis point improvement in EBITDA margin to 14.4%, with FY'25 profit after tax at ₹687.4 crore. The ZEE5 streaming business cut its EBITDA loss by roughly half to ₹550 crore (from ₹1,110 crore last year), aided by a revised pricing strategy and syndication deals. The company closed the year with ₹2,410 crore in cash and treasury investments, while content inventory declined ₹370 crore year-on-year to ₹7,050 crore. Management reiterated guidance of 8–10% revenue growth and 18–20% EBITDA margin by FY'26 exit, and is targeting ZEE5 breakeven over a roughly three-year timeline from 2025. Other highlights include re-entry into the free-to-air (FTA) space, plans for 18–21 film releases next year, and ongoing evaluation of acquisition opportunities using ₹200 crore of FCCB funds.
The margin guidance of 18–20% by FY'26 exit and the sharp ZEE5 loss reduction signal improving profitability, which is positive for shareholders. However, the 11% drop in ad revenue and soft advertising outlook remain near-term concerns that could keep the stock range-bound until a clearer macro recovery emerges.