Zee Entertainment returns to growth for the first time after COVID-19

Zee Entertainment Enterprises reported its first sales growth figure in the post-pandemic period after advertising revenue grew by 7.5% and domestic subscription revenue rose 9.3% on a like-to-like basis.

It also generated another Rs 551 cr during the quarter by licensing its content to third parties, taking its revenue growth to 33%.

However, excluding this one-time item, revenue was up 6.3%.

Overall income for Oct-Dec was up by Rs 637 cr over the same three months of 2019, while overall expenses (excluding tax) was up by 556 cr.

The company said programming cost grew by 11% during the quarter primarily led by increased content and transmission costs in digital business.

As a result, the company’s pre-tax profit was up by Rs 81 cr at Rs 592 cr.

Net profit rose by Rs 49 cr at Rs 398 cr.

During the quarter, the directors of the company approved the sale of its digital publishing business to Rapidcube Technologies Private Limited, a related party.

The company’s performance was aided by a shift in festival season more toward the third quarter from the second quarter this year.

It also said the sharp recovery in ad revenue “reflects the rebound in consumer demand and spending”.