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FIFA Boosts Subscriptions, But Costs Sink ZEE's Profit
1 Nov
Summary
- Consolidated net profit dropped 40% to ₹46 crore despite revenue rise.
- Operating revenue increased 13% to ₹2,225 crore, driven by FIFA subscriptions.
- Total expenses surged 18%, impacting profitability significantly.
Zee Entertainment Enterprises experienced a substantial decrease in consolidated net profit, falling by 40% to ₹46 crore for the quarter ending September 30, 2026. This downturn occurred even as operating revenue climbed 13% to ₹2,225 crore. The revenue growth was primarily fueled by subscription increases linked to the FIFA World Cup 2026. However, the company's profitability was severely hampered by a significant 18% rise in total expenditure.
Ebitda saw a sharp decline of 52%, settling at ₹71 crore, and the Ebitda margin contracted to 3.2% from 7.4% in the prior year. This compression is attributed to increased programming and promotional spending. Operating expenses rose by 14% to ₹1,225 crore, while advertising and promotion (A&P) expenditures escalated by 55% to ₹571 crore, reflecting investments in FIFA-related content and other initiatives.
Subscription revenue demonstrated strong performance, growing by 30% to ₹1,332 crore, supported by domestic advertising during the FIFA event and popular shows. Looking ahead, the company anticipates the festive season will further boost advertising revenue. ZEE5, the company's digital platform, emerged as a significant success story, with revenue more than doubling by 101% to ₹626 crore and turning Ebitda positive at ₹42 crore.
