Zee Entertainment faced a more than 2% decline in its shares on November 10, following lackluster Q2 performance. As of 11:51 pm, Zee Entertainment’s stock was trading at Rs 258.23 on NSE.
The media company reported a 3.3% dip in advertising revenues, amounting to Rs 979 crore in the September quarter of FY24 compared to Rs 1,012.63 crore in Q2 FY23. This decline was attributed to a weak advertising environment. Analysts had anticipated Zee Entertainment’s ad revenues to be around Rs 977.1 crore in Q2 FY24, slightly lower than the Rs 1,012.8 crore recorded in Q2 FY23.
Zee Entertainment’s profit after tax (PAT) also witnessed a YoY decline of 5.3%, settling at Rs 129.9 crore. The company’s total income for Q2 was reported at Rs 2,509.57 crore, compared to Rs 2,040.87 crore in the same period of FY23.
The dip in ad spends, particularly in categories like edtech, fintech, food tech, and e-commerce, posed a challenge for the broadcast industry. The weak ad environment, impacted by reduced ad spends during the busy cricket season, including tournaments like the Asia Cup and the ongoing ICC World Cup, contributed to the overall slowdown. While there was some early pick-up in ad spending led by FMCG during Q2, the overall recovery pace in the ad environment remains sluggish, according to Zee’s management.
As of the latest update, the stocks were trading 5.99% lower at ₹247.10.
