Zee Entertainment Q1 Results: PAT falls 48% YoY to Rs 74 crore; ad revenue hit by Middle East crisis
Zee Entertainment’s Q1 FY27 profit fell 48% to Rs 74.3 crore, while EBITDA plunged 65% despite 5% revenue growth. Advertising faced pressure from Middle East tensions and cricket, partly offset by FIFA rights, subscription growth and higher digital ARPU.
Zee Entertainment Enterprises reported a significant decline in profit after tax (PAT) in the first quarter of FY27, with a 48% decrease to Rs 74.3 crore compared to Rs 143.7 crore in the same period last year. The advertising revenue suffered due to the Middle East crisis, although FIFA World Cup performance helped offset the impact.
Revenue from operations grew by 5% year-on-year to Rs 1,907.3 crore, while EBITDA declined by 65% to Rs 78.9 crore, resulting in an EBITDA margin of 4.1%. Domestic advertising revenue was hit by the Middle East crisis and cricket during the quarter, leading to an overall revenue decrease of 11% year-on-year. Advertising revenue recovered in June following the acquisition of FIFA digital and broadcasting rights.
Subscription revenue grew due to higher linear subscription pricing, increased digital subscribers, and higher average revenue per user (ARPU). International advertising revenue was Rs 46 crore, subscription revenue amounted to Rs 103.5 crore, and Other Sales & Services revenue was Rs 15.5 crore. Growth in the studios business was driven by other-language movies, such as "Tumbbad Chi Manjula" and "Rakaasa."
Programming expenses increased due to FIFA 2026 and expanded content offerings. Zee Entertainment re-appointed four independent directors for a second term of five years, subject to shareholder approval at the upcoming Annual General Meeting.
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