Mumbai: Zee Entertainment Enterprises (ZEEL) reported a net profit of Rs 209.4 crore for the second quarter of FY25, marking a 70.2% year-on-year (Y-o-Y) increase, driven by cost-cutting measures, media reports said.
The company's revenue, however, dropped nearly 18% to Rs 2,000.7 crore, down from Rs 2,437.8 crore in the same quarter last year, reported Business Standard.
"Domestic advertising revenue declined 9% Y-o-Y due to a subdued ad spending environment in Q2," ZEEL noted in its earnings presentation, the report said.
The company expects ad spending to pick up during the festive season but emphasized that a sustained recovery remains crucial.
ZEEL's profit before depreciation, interest, and taxes decreased by 16.8% Y-o-Y to Rs 109.1 crore, primarily due to lower programming and technology costs.
Other income slumped 53% Y-o-Y to Rs 33.7 crore, though it rose by 77.4% sequentially.
Other sales and services dropped Y-o-Y as Q2 FY24 benefited from higher theatrical revenue from Gadar 2 and other syndication, the company stated.
Subscription revenue has shown over 9% Y-o-Y growth in the past three quarters, with Zee5, the company’s streaming platform, contributing Rs 236.6 crore in Q2 FY25, releasing 16 shows and films, including five originals.
ZEEL highlighted significant progress toward achieving a balanced cost structure for long-term growth in Zee5, also confirming earlier plans to reduce its workforce to cut costs.
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