ZEEL Q2 FY23 Result Update:
Future Commentary by Management:
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Ad revenue was down in Q2 FY23. Likely to pickup in Q3 FY23 as festive season is going on. Expects a very small growth in revenue in FY23.
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ZEE5 subscription has performed well. But overall subscription revenue has reduced. NTO 2.0 is delayed until March’23.
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Movie investment has increased which is a negative surprise. Movie releases have underperformed. Aims to increase movie spend with more focus on regional movies. More acquisitions of movie rights will keep inventories at elevated levels for a few quarters.
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EBITDA margins have been affected due to more A&P spend which was due to movie releases. There is also a rise in programming cost.
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ZEE5 is an EBITDA loss business which will still continue for a few more quarters.
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Merger with Sony is expected to complete in March’23. The focus will be more on Sports entertainment after merger.
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The rebound in market share in Hindi/Marathi/Tamil GEC will be key to overall market share and ad recovery.
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