Zee Media Corporation Limited (ZMCL) reported its financial results for the quarter ended September 30, 2023. The company’s revenue for this quarter was Rs 151.6 crore, with an operating loss of Rs 20.2 crore. This reflected a substantial decline of 199% compared to the operating profit of Rs 20.3 crore in Q2 FY23.
Breaking down the figures, in Q2 FY23, the operating revenue and expenditure were Rs 194.7 crore and Rs 174.3 crore, respectively. In Q2 FY24, the operating revenue decreased to Rs 151.6 crore, while the expenditure increased to Rs 171.8 crore. Combining Q1 and Q2 of FY24, the consolidated operating loss amounted to Rs 39.9 crore.
A significant factor contributing to this decline was the media group’s advertising revenue, which amounted to Rs 142.5 crore for the quarter, marking a negative growth of 22.7% compared to the same quarter last year when it was Rs 184.2 crore. The total advertising revenue for Q1 and Q2 combined was Rs 274.3 crore, indicating a substantial decrease.
On a positive note, the subscription revenue for Q2 FY24 showed a slight increase, reaching Rs 9 crore, signifying a growth of 1.4% compared to the previous year’s same quarter. However, the overall H1 subscription revenues saw a decline of 1.5% compared to the previous year, amounting to Rs 17.5 crore.
Zee Media’s marketing, distribution, and business promotion expenses experienced significant growth, reaching Rs 28.9 crore for Q2 FY24. This marked an 88% increase compared to Q2 FY23. When considering Q1 and Q2 of FY24 together, these expenses amounted to Rs 50.6 crore, reflecting a 45.9% increase.
In response to the financial challenges, Zee Media took proactive steps to improve its performance. The company re-registered for the Television Audience Measurement System with the Broadcast Audience Research Council (BARC) after constructive discussions. As part of this agreement, ZMCL committed to sharing raw data on a timely basis, emphasizing its commitment to transparency and a mutually beneficial partnership. The company’s move aligns with the media industry’s collective commitment to transparent and credible audience measurement.
Additionally, Zee Media Corporation Limited informed about the closure/striking off of ‘Zee Media Americas LLC,’ which was initially formed as the Wholly Owned Subsidiary (WOS) of the company in Delaware, US.
Zee Media, a media conglomerate comprising 16 TV news channels, including one global, four national, and 11 regional language channels, along with three digital-only channels and 18 digital brands, continues to navigate the challenges of the industry with strategic shifts and transparent, credible audience measurement.