Zee Entertainment’s Q1 Net Profit Jumps 22 Per Cent Despite Revenue Dip

Zee Entertainment Enterprises Ltd (ZEEL) reported a 22 per cent year-on-year increase in consolidated net profit for the quarter ended June 30, 2025, reaching Rs 143.7 crore, up from Rs 118.1 crore reported in the same period in the preceding 2024-25 fiscal year (FY25).

The growth in profit came even as total income declined, with the company citing better viewership and robust digital performance as key contributors to profitability, reported PTI.

During the first quarter of FY26, consolidated total income slipped to Rs 1,849.8 crore compared to Rs 2,149.5 crore in the previous year’s April-June quarter. However, total expenses also dropped significantly, down to Rs 1,652.7 crore from Rs 1,941.1 crore clocked in the same period last year, aiding the bottom line.

In its regulatory filing, ZEEL also disclosed an exceptional item outgo of Rs 28.5 crore during the June quarter.

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Digital momentum continues; TV subscription falls

In its post-earnings investor update, ZEEL noted that it managed to sustain profitability during a quarter marked by macroeconomic headwinds. The company attributed this to increased network viewership, particularly in regional language markets, as well as the continued strong performance of its digital vertical.

However, ZEEL flagged concerns in the advertising segment. “Domestic advertising revenue declined by 19 per cent Y-o-Y for the quarter due to extended sports calendar, and slowdown in FMCG spending,” the company said. It added that the overall advertising environment remains subdued, although it expressed optimism going forward, noting that a “healthy monsoon and festive pick-up augurs well for the near future.”

The company also reported that gains in digital subscription revenue were counterbalanced by a fall in linear PayTV subscribers, resulting in an overall decline in subscription income.

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