Zee Entertainment returns to profitability with Rs 118.1 crore in Q1 FY 2025

New Delhi: Zee Entertainment bounced back to profitability in the June quarter of FY 2025, posting a net profit of Rs 118.1 crore, a significant turnaround from the net loss of Rs 53.4 crore in the same quarter last year.

The company's consolidated total income rose 7.6% to Rs 2,150 crore in Q1 FY25 as against Rs 1,998 crore in Q1 FY24.

Total expenses of ZEEL were at Rs 1,941.12 crore, marginally up in the June quarter of FY25.

The company’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) surged 75.3% year-on-year to Rs 271.7 crore.

This increase was driven by a decrease in employee benefit expenses due to the ongoing restructuring and a reduction in ZEE5's losses.

Zee reported a 3% drop in advertising revenue for Q1, totaling Rs 911 crore compared to Rs 940.91 crore in the same period last year. 

However, subscription revenue saw an 8.7% increase, reaching Rs 987.19 crore, up from Rs 907.49 crore year-on-year. 

On the digital side, Zee5's revenue surged 15.3% to Rs 223.7 crore, up from Rs 193.9 crore in the previous year.

Zee stated that a sluggish advertising environment during the quarter was balanced by a rise in subscription revenue, successful movie releases, and increased syndication revenue.

“While Q1 has already started on a positive note with a significant step up in margins, we expect gradual margin improvement to continue through the rest of the year,” said Zee in an investors’ presentation.

For the fiscal year 2026, Zee Entertainment aims to achieve an industry-leading EBITDA margin ranging from 18% to 20%.