{"id":158746,"date":"2024-02-14T06:16:58","date_gmt":"2024-02-14T11:16:58","guid":{"rendered":"https:\/\/44.250.171.167\/?p=158746"},"modified":"2024-02-14T06:17:00","modified_gmt":"2024-02-14T11:17:00","slug":"zee-entertainment-enterprises-limited-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/zee-entertainment-enterprises-limited-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"Zee Entertainment Enterprises Limited Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Zee Entertainment Enterprises Limited (ZEEL) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Sony Merger Termination<\/strong>\n<ul>\n<li>Announced that Sony terminated the proposed merger through a communication on Jan. 22nd, 2024.<\/li>\n<li>The Board reviewed it and took appropriate legal steps in the best interest of shareholders.<\/li>\n<li>Zee approached NCLT seeking direction on implementing the merger scheme.<\/li>\n<li>Growth seen across both urban and rural markets in T1, T2 and T3, T4 cities.<\/li>\n<li>Zee wanted the merger implemented and offered solutions, but Sony did not accept.<\/li>\n<li>Zee will let the law take its course.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth Plans<\/strong>\n<ul>\n<li>Outlined a 3-pronged approach for growth: frugality, optimization, and focus on quality content.<\/li>\n<li>Steps to be taken to optimize spends, enhance ROI, and recalibrate OTT costs.<\/li>\n<li>Productivity will be improved through resource optimization and reducing overlaps.<\/li>\n<li>New monetization avenues will be explored while maintaining focus on quality over quantity of content.<\/li>\n<li>Gradual margin recovery expected in 2H25, with FY25 margins meaningfully better than FY24.<\/li>\n<li>Goal is to achieve 18-20% industry-leading EBITDA margin in FY26.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Q3 FY24 was steady with festive season strength partially offset by cricket.<\/li>\n<li>Ad revenues were up 4.9% QoQ but still down 3.4% YoY due to muted recovery.<\/li>\n<li>Subscription revenues continue to inch up, driven by NTO 3.0 and ZEE5.<\/li>\n<li>Other sales and services revenues declined due to fewer movie releases.<\/li>\n<li>EBITDA margins declined to 10.2% due to lower revenues.<\/li>\n<li>Net profit was impacted by merger expenses.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Business Performance<\/strong>\n<ul>\n<li>TV viewership at a 9-quarter high, Zee portfolio has 78% share gain in FY24 YTD.<\/li>\n<li>Zee gained 40 bps share YTD; fastest growing in South and has consolidated leadership in movies.<\/li>\n<li>ZEE5 continues healthy growth, with 31% YoY revenue growth in 9 months.<\/li>\n<li>ZEE5 EBITDA loss has narrowed by INR 99 million QoQ through cost management.<\/li>\n<li>In Q3, Zee Studios released 6 movies including Hindi and regional.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Outlook<\/strong>\n<ul>\n<li>Strong free cash flow generation through working capital optimization.<\/li>\n<li>Cash and treasury investments increased to INR 8,286 million.<\/li>\n<li>Content advances and deposits declined by INR 4.4 billion YTD showing optimization.<\/li>\n<li>Confident about long-term growth prospects and margin improvement potential.<\/li>\n<li>Margins may face pressure in next 3-6 months due to one-time costs of interventions.<\/li>\n<li>Gradual margin recovery expected from 2H25 onwards.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Business Strategy Reset<\/strong>\n<ul>\n<li>Sports and other initiatives will be re-evaluated to focus on most value-adding.<\/li>\n<li>Linear TV margins were historically higher than current overall margins.<\/li>\n<li>OTT losses have reduced indicating margin improvement there as well.<\/li>\n<li>Growth and margin expansion will happen in parallel through optimization efforts.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Subscription Revenue Growth<\/strong>\n<ul>\n<li>Price hikes across bouquets are 6-8% based on new RIO.<\/li>\n<li>Incremental 9M subscription revenue is from both linear TV and ZEE5.<\/li>\n<li>NTO 3.0 implementation has contributed, though split not provided.<\/li>\n<li>Overall growth is in high single digits, close to 10% in line with past guidance.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Linear TV Margins<\/strong>\n<ul>\n<li>Lower margins in Q3 due to slower recovery in heartland\/FMCG ad revenues.<\/li>\n<li>Presence of marquee sports properties also ate into inventory.<\/li>\n<li>Not a one-off event, but due to above temporary factors.<\/li>\n<li>Overall subscription revenue growing in high single digits as guided.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Zee Entertainment Enterprises Limited (ZEEL) Q3 FY24 Earnings Concall Sony Merger Termination Announced that Sony terminated the proposed merger through a communication on Jan. 22nd, 2024. The Board reviewed it and took appropriate legal steps in the best interest of shareholders. Zee approached NCLT seeking direction on implementing the merger scheme. Growth [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5749],"tags":[10169,8181,12109],"class_list":["post-158746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-entertainment-stocks","tag-earnings","tag-media","tag-media-entertainment"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":141768,"url":"https:\/\/alphastreet.com\/india\/zee-entertainment-enterprises-limited-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":158746,"position":0},"title":"Zee Entertainment Enterprises Limited Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"February 15, 2023","format":false,"excerpt":"Key highlights from Zee Entertainment Enterprises Limited (ZEEL) Q3 FY23 Earnings Concall Q&A Highlights: [00:13:19] Abneesh Roy from Nuvama asked about cash and investments being down almost half for 9 months and its outlook. Rohit Gupta CFO answered that 3Q23\u2019s exceptional item includes recognized revenue of Siti, impairment of entities\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":177268,"url":"https:\/\/alphastreet.com\/india\/zee-entertainment-q3-fy26-earnings-results\/","url_meta":{"origin":158746,"position":1},"title":"Zee Entertainment Q3 FY26 Earnings Results","author":"Chirag Gupta","date":"January 23, 2026","format":false,"excerpt":"Zee Entertainment Enterprises is mainly in the following businesses: Broadcasting of Satellite Television Channels, Space Selling agent for other satellite television channels, and Sale of Media Content i.e. programs \/ film rights \/ feeds \/music rights. Q3 FY26 Earnings Results Zee Entertainment reported 15% YoY revenue growth in Q3 FY26\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":130739,"url":"https:\/\/alphastreet.com\/india\/zee-entertainment-enterprises-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":158746,"position":2},"title":"Zee Entertainment Enterprises Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"June 21, 2022","format":false,"excerpt":"https:\/\/youtu.be\/o4itPXV5uDc Key highlights from Zee Entertainment Enterprises Limited (ZEEL) Q4 FY22 Earnings Concall \u00a0\u00a0 Q&A Highlights: Vivek Subbaraman - Ambit Capital - Analyst Does the current balance sheet allow ZEEL to bid for IPL at all? Punit Goenka - Managing Director and Chief Executive Officer It does, ZEEL can participate\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":142393,"url":"https:\/\/alphastreet.com\/india\/zee-entertainment-posted-92-per-cent-fall-in-net-profit-in-q3fy23\/","url_meta":{"origin":158746,"position":3},"title":"Zee Entertainment posted 92 per cent fall in net profit in Q3FY23","author":"Chirag Gupta","date":"February 21, 2023","format":false,"excerpt":"Zee Entertainment Enterprises (ZEE) posted 92 percent fall in consolidated net profit at INR 24.3 crore for the October-December 2022 quarter, compared to INR 299 crore in the same period a year-ago. Meanwhile, its revenue from operations remained flat at around INR 2,111 crore, down 0.1 percent year-on-year, Zee reported\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"earnings preview","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":136569,"url":"https:\/\/alphastreet.com\/india\/zee-entertainment-q2fy23-net-profit-declined-by-57-5-to-%e2%82%b9112-89-crores\/","url_meta":{"origin":158746,"position":4},"title":"Zee Entertainment Q2FY23; Net Profit declined by 57.5% to \u20b9112.89 Crores","author":"Hardik Bhandare","date":"November 12, 2022","format":false,"excerpt":"Zee Entertainment Enterprises Limited (NSE: ZEEL) reported Q2FY23 result with a flat Revenue growth of 2.5% up to \u20b92,028.4 Crores from \u20b91,978.79 Crores year on year. The Net Profit declined by 57.5% to \u20b9112.89 Crores from \u20b9266.08 Crores in the same period. The Earnings per share is \u20b91.18 for this\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/6ea28f1a-23a1-4389-adcb-9b77fd2c5e2a-1-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/6ea28f1a-23a1-4389-adcb-9b77fd2c5e2a-1-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/6ea28f1a-23a1-4389-adcb-9b77fd2c5e2a-1-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/6ea28f1a-23a1-4389-adcb-9b77fd2c5e2a-1-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/6ea28f1a-23a1-4389-adcb-9b77fd2c5e2a-1-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/11\/6ea28f1a-23a1-4389-adcb-9b77fd2c5e2a-1-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":141358,"url":"https:\/\/alphastreet.com\/india\/zee-entertainment-q3fy23-net-profit-drops-by-92-per-cent\/","url_meta":{"origin":158746,"position":5},"title":"Zee Entertainment Q3FY23 net profit drops by 92 per cent","author":"Chirag Gupta","date":"February 13, 2023","format":false,"excerpt":"Zee Entertainment Enterprises (ZEE) posted 92 percent fall in consolidated net profit at Rs 24.3 crore for the October-December 2022 quarter, compared to Rs 299 crore in the same period a year-ago. Meanwhile, its revenue from operations remained flat at around Rs 2,111 crore, down 0.1 percent year-on-year, Zee reported\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"earnings preview","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/158746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=158746"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/158746\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=158746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=158746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=158746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}