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Earnings Call Transcript

Zee Entertainment Enterprises Earnings Call Transcript: Key Takeaways

Q1 FY27 Operating Revenue at Rs 19,073 Mn, up 5% YoY. Performance impacted by weak advertising environment due to Middle East crisis, partially offset by strong subscription and FIFA performance.

Highlights
Revenue growthZEE5 revenue grew 58% YoY.
MarginsEBITDA margin compressed to 4.1% from 12.5% YoY due to programming costs.
Demand visibilityAd recovery seen in June post-FIFA acquisition; linear subscription pricing driving growth.
Management confidencePositive outlook on digital business momentum and FIFA viewership gains.

Growth

Revenue grew 5% YoY; Subscription revenue rose 16% YoY. EBITDA declined 65% YoY to Rs 789 Mn with 4.1% margin.

Outlook

Focus on FIFA 2026 rights and digital growth. Maintaining healthy balance sheet with Rs 22.1 Bn cash.

Risks

Ad revenue down 11% YoY citing Middle East Crisis and cricket competition. Higher A&P spends for sports.

Last quarter's promises, checked

Delivered

  • Digital breakeven objective → ZEE5 EBITDA positive at 44 Mn (= BEAT)
  • Costs to stabilize after Q2 bump → Q1 FY27 EBITDA margin 4.1% vs 7.4% in Q2 (= BEAT)
  • Revenue uptick in H2 FY26 → Q1 FY27 revenue up 5% YoY (= BEAT)

Partly delivered

  • Subscription revenue growth → delivered 16% YoY (= BEAT)

Missed

  • Ad revenue growth 6-8% → delivered -11% YoY (= MISS)
  • Exit margin 18-20% → delivered 4.1% (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: ZEEL. Summary written with AI assistance from the document.

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Zee Entertainment Enterprises Ltd: key numbers

Share price
₹76.87
Market cap
₹7,384 Cr
Revenue (annual)
₹8,099 Cr
Net profit (annual)
₹273.1 Cr
P/E (TTM)
35.9×Sector 27.7×
Promoter holding
3.99%+0.00% QoQ
FII holding
20.11%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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