Zee Entertainment Enterprises Ltd. has reported its financial results for the second quarter of fiscal year 2025 (Q2 FY25), highlighting a mixed performance with both YoY (year-on-year) and QoQ (quarter-on-quarter) changes in its financial metrics. The company’s revenue and net profit figures reflect varying levels of growth and decline.
Key Financial Results Overview
- Revenue from Operations for Q2 FY25 stood at ₹2,034.4 crore, reflecting a YoY decrease of 18.9% compared to ₹2,509.6 crore in Q2 FY24. On a QoQ basis, revenue decreased by 5.3% from ₹2,149.5 crore in Q1 FY25.
- Net Profit for Q2 FY25 reached ₹209.5 crore, showing a decrease of 34.1% YoY from ₹319.9 crore in Q2 FY24. However, it grew by 5.9% QoQ compared to ₹197.8 crore in Q1 FY25.
Below is a more detailed comparison of Zee Entertainment’s performance in Q2 FY25 versus Q2 FY24 (YoY) and Q1 FY25 (QoQ):
Year-on-Year (YoY) Comparison (Q2 FY25 vs Q2 FY24)
| Particulars | Q2 FY25 | Q2 FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations (₹ crore) | 2,034.4 | 2,509.6 | -18.9% |
| Total Income (₹ crore) | 2,097.1 | 2,509.6 | -16.4% |
| Total Expenses (₹ crore) | 1,759.0 | 2,205.7 | -20.3% |
| Net Profit (₹ crore) | 209.5 | 319.9 | -34.1% |
| Earnings per Share (₹) | 2.18 | 3.41 | -36.0% |
Quarter-on-Quarter (QoQ) Comparison (Q2 FY25 vs Q1 FY25)
| Particulars | Q2 FY25 | Q1 FY25 | QoQ Change |
|---|---|---|---|
| Revenue from Operations (₹ crore) | 2,034.4 | 2,149.5 | -5.3% |
| Total Income (₹ crore) | 2,097.1 | 2,149.5 | -2.4% |
| Total Expenses (₹ crore) | 1,759.0 | 1,941.1 | -9.4% |
| Net Profit (₹ crore) | 209.5 | 197.8 | +5.9% |
| Earnings per Share (₹) | 2.18 | 2.08 | +4.8% |
Key Highlights:
- Revenue Decline: Zee’s revenue from operations showed a significant decline of 18.9% YoY and 5.3% QoQ, indicating a slowdown in advertising and subscription revenue. Advertising revenue dipped to ₹901.7 crore, compared to ₹979.2 crore in the same quarter last year.
- Profit Performance: Despite the revenue decline, Zee managed to post a QoQ increase in net profit of 5.9%, supported by cost control measures. However, on a YoY basis, net profit declined by 34.1%, from ₹319.9 crore to ₹209.5 crore.
- Earnings Per Share: The company’s earnings per share dropped from ₹3.41 in Q2 FY24 to ₹2.18 in Q2 FY25, reflecting the overall reduction in profit margins. QoQ, EPS increased from ₹2.08 in Q1 FY25.
- Cost Management: Zee’s total expenses decreased by 9.4% QoQ and 20.3% YoY, showing its efforts in managing operational costs. This was partly driven by lower employee benefit expenses and a reduction in other costs such as advertising and publicity expenses.
Outlook:
Zee Entertainment continues to face challenges in the media and entertainment sector, particularly in the advertising segment, which is a key revenue driver. The company’s cost-saving measures have helped mitigate the impact on profitability. Moving forward, Zee’s performance will likely hinge on its ability to revitalize its content and monetize digital platforms amid the ongoing industry shifts.
