Zee Entertainment Profit Falls 46.9% on Weak Advertising and Rising Costs
India’s Zee Entertainment Enterprises reported a 46.9% decline in quarterly net profit, hurt by weaker advertising revenue and higher costs linked to its return to sports broadcasting. Consolidated net profit fell to ₹763 million for the quarter ended June 30, from ₹1.44 billion a year earlier.
Zee’s total income increased 4.8% to ₹19.39 billion, but advertising revenue, which contributes about 35% of total income, dropped 11.5% to ₹6.71 billion. Meanwhile, subscription revenue grew 15.8% to ₹11.37 billion, supported by higher pricing and an increase in digital subscribers.
The company returned to sports broadcasting during the quarter after securing Indian rights to 39 FIFA events through 2034, including the 2026 and 2030 FIFA World Cups. While the rights helped advertising recover in June and boosted activity on its Z5 streaming platform, programming and promotional expenses pushed total costs up 12.8% to ₹18.64 billion, weighing on near-term profitability.
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