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Business Standard
7 days ago
- Business
- Business Standard
Zee Entertainment Q1 results: Net profit rises 21.7% to ₹143.7 crore
Zee Entertainment Enterprises (ZEEL) reported a consolidated net profit increase of 21.7 per cent to Rs 143.7 crore in the April-June quarter, compared to the same quarter last year. This growth was primarily due to the absence of restructuring costs following the failure of the Zee-Sony merger. In Q1FY25, ZEEL had incurred restructuring costs of Rs 28.6 crore after the Zee-Sony merger did not go through. The net profit in Q1FY26 also includes gains from the company's portfolio rationalisation initiative and the treatment of Margo Networks as a discontinued operation. Margo Networks had incurred a loss of Rs 7.6 crore in Q1FY25. On a sequential basis, the company's net profit declined by 23.7 per cent in the April-June quarter. The Mumbai-based broadcaster's revenue from operations decreased by 14.3 per cent to Rs 1,824.8 crore in Q1FY26, on a year-on-year (YoY) basis. ZEEL's other income rose by 31.6 per cent to Rs 25 crore for the quarter ended June 30, compared with the same quarter last year. The company's advertising revenue fell by 17 per cent to Rs 758.5 crore YoY in the April-June quarter. This decline was attributed to an extended sports calendar and a slowdown in FMCG (fast-moving consumer goods) spending, as per its investor presentation. 'The increase in digital subscription revenue was offset by a decline in linear subscription revenue due to a fall in PayTV subscribers. Other sales and services (down 64 per cent to Rs 84.6 crore YoY) declined due to lower theatrical and syndication revenue,' the company stated in its presentation. Its profit before interest, depreciation, and tax (PBIDT) decreased by 8.8 per cent to Rs 264 crore for the quarter ended June 30, compared with the same quarter last year. Meanwhile, the total revenue of ZEE5, the company's streaming platform, increased by 30 per cent to Rs 290 crore in the April-June quarter, on a YoY basis. ZEE5 also saw a Rs 111.9 crore reduction in its EBITDA (earnings before interest, taxes, depreciation, and amortisation) in Q1FY26, compared with the same period last year. During this quarter, the platform released 17 shows and movies, including five original productions. 'Accelerating growth, profitability, and cash generation continue to remain our priority, and this will further be driven by the new initiatives we are working on," said Mukund Galgali, Deputy Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of ZEEL, in the company's investor call. He added, 'Within the music business, our profitability continues to remain fairly healthy, and we are further diversifying our catalogue into other language markets.' 'Over the last couple of quarters, the team has put in significant efforts to enhance our content offerings in every market," said Punit Goenka, CEO of ZEEL, during the investor call. "I am pleased to share that we are beginning to witness positive momentum in this direction, with our linear viewership share touching 16.8 per cent in Q1, further fortifying our position as a strong player in the industry. In fact, during the month of June itself, we clocked a viewership share of 17.8 per cent, which is nearly a two-year high.'
Time of India
21-05-2025
- Business
- Time of India
Tata Play drops Sony channels from packs
Mumbai : Direct-to-home (DTH) operator Tata Play has begun removing Sony Pictures Networks India (SPNI) channels from its subscriber packs, reviving a standoff with the broadcaster similar to last year's, multiple sources told to one source, SPNI is demanding a 10–15% increase in annual subscription fees from Tata Play—a proposal the latter is resisting amid ongoing challenges such as customer churn and stagnant average revenue per user (ARPU).Tata Play has 18 million subscribers while SPNI has 27 linear TV channels across entertainment and overall lack of subscriber growth is straining the relationship between broadcasters and distribution platforms, putting pressure on their revenues. Another source said Tata Play is reducing subscription pack prices by ₹15–20 for affected customers. Typically, broadcasters and distribution platforms renew content deals annually in April. While SPNI did not respond to ET's queries, Tata Play said the move is part of a routine exercise to optimise packs based on user behaviour. The company noted that customers can choose to reinstate the dropped channels if they wish. Under Telecom Regulatory Authority of India (TRAI) guidelines, distribution platforms must offer TV channels on an à la carte basis even if those channels are removed from bundled packs. 'Pack downgrading along with corresponding drop in price is an ongoing process at Tata Play, where certain channels are dropped for subscribers displaying frequent deactivation. These subscribers have the option of giving a missed call and reinstating the dropped channel instantly,' a Tata Play spokesperson said. A senior media executive said distribution platforms often resort to tactics such as dropping channels from subscription packages during negotiations. 'Ultimately, both sides are dependent on each other for survival, so a resolution is inevitable,' he added. A senior executive at a distribution platform pointed out that regular price hikes by broadcasters are making linear TV less attractive compared to streaming services, many of which are bundled with mobile data and broadband plans. 'Content cost already accounts for over 50% of a distribution platform's expenses and continues to go up every year even as customer churn is a reality,' said the executive. During the earnings call on May 8, Zee Entertainment deputy CEO Mukund Galgali had stated that the Q4 subscription revenue remained flat Q-o-Q due to a slowdown in the linear subscription, which was partially offset by the increase in digital subscription revenue. This isn't the first time Tata Play has modified its offering in relation to SPNI. In August last year, a similar removal took place, with the company attributing the decision to declining viewership of Sony Entertainment Television (SET), SPNI's flagship Hindi general entertainment channel. After reaching an amicable resolution, SPNI channels were reintroduced across all packs. Broadcasters such as JioStar, Zee Entertainment, and SPNI have recently raised their bouquet rates by over 10%, with JioStar—which emerged from the merger of Star India and Viacom18—implementing an 18% hike. However, distribution platforms say they are unable to pass the full increase on to subscribers due to pricing sensitivity. "The broadcasters are taking the price up a bit. But yes, we are seeing how we can accommodate that and how we can pass very small costs to the customer side. As you know, the market is still sensitive," GTPL Hathway chief strategy officer Piyush Pankaj had said during the Q4 earnings call.
Time of India
21-05-2025
- Business
- Time of India
Tata Play drops Sony channels from packs
Mumbai : Direct-to-home (DTH) operator Tata Play has begun removing Sony Pictures Networks India (SPNI) channels from its subscriber packs, reviving a standoff with the broadcaster similar to last year's, multiple sources told ET. According to one source, SPNI is demanding a 10–15% increase in annual subscription fees from Tata Play—a proposal the latter is resisting amid ongoing challenges such as customer churn and stagnant average revenue per user (ARPU). Tata Play has 18 million subscribers while SPNI has 27 linear TV channels across entertainment and sports. The overall lack of subscriber growth is straining the relationship between broadcasters and distribution platforms, putting pressure on their revenues. Another source said Tata Play is reducing subscription pack prices by ₹15–20 for affected customers. Typically, broadcasters and distribution platforms renew content deals annually in April. Live Events While SPNI did not respond to ET's queries, Tata Play said the move is part of a routine exercise to optimise packs based on user behaviour. The company noted that customers can choose to reinstate the dropped channels if they wish. Under Telecom Regulatory Authority of India (TRAI) guidelines, distribution platforms must offer TV channels on an à la carte basis even if those channels are removed from bundled packs. 'Pack downgrading along with corresponding drop in price is an ongoing process at Tata Play, where certain channels are dropped for subscribers displaying frequent deactivation. These subscribers have the option of giving a missed call and reinstating the dropped channel instantly,' a Tata Play spokesperson said. A senior media executive said distribution platforms often resort to tactics such as dropping channels from subscription packages during negotiations. 'Ultimately, both sides are dependent on each other for survival, so a resolution is inevitable,' he added. A senior executive at a distribution platform pointed out that regular price hikes by broadcasters are making linear TV less attractive compared to streaming services, many of which are bundled with mobile data and broadband plans. 'Content cost already accounts for over 50% of a distribution platform's expenses and continues to go up every year even as customer churn is a reality,' said the executive. During the earnings call on May 8, Zee Entertainment deputy CEO Mukund Galgali had stated that the Q4 subscription revenue remained flat Q-o-Q due to a slowdown in the linear subscription, which was partially offset by the increase in digital subscription revenue. This isn't the first time Tata Play has modified its offering in relation to SPNI. In August last year, a similar removal took place, with the company attributing the decision to declining viewership of Sony Entertainment Television (SET), SPNI's flagship Hindi general entertainment channel. After reaching an amicable resolution, SPNI channels were reintroduced across all packs. Broadcasters such as JioStar, Zee Entertainment, and SPNI have recently raised their bouquet rates by over 10%, with JioStar—which emerged from the merger of Star India and Viacom18—implementing an 18% hike. However, distribution platforms say they are unable to pass the full increase on to subscribers due to pricing sensitivity. "The broadcasters are taking the price up a bit. But yes, we are seeing how we can accommodate that and how we can pass very small costs to the customer side. As you know, the market is still sensitive," GTPL Hathway chief strategy officer Piyush Pankaj had said during the Q4 earnings call.
