Mumbai: Zee Entertainment Enterprises (Zeel) reported a four per cent increase in Q1 FY23 revenue to Rs 1,845.7 crore, compared to Rs 1,775 crore in Q1 FY2022. Ebitda for the first quarter of FY23 was Rs 235.7 crore, with a margin of 12.8 per cent. Profit after taxes fell by 50.01 per cent for the same period to Rs 106.6 crore, compared to Rs 213.8 crore in Q1 FY22.
Domestic ad revenue was recorded at Rs 9,257 crore, up 5.8 per cent year on year but down 14 per cent quarter on quarter. Ad revenue growth for the same quarter was impacted by FTA withdrawal (Zee Anmol) and lower advertising spending by brands due to weak macroeconomic conditions.
Subscription revenue fell 5.1 per cent year on year and 10 per cent quarter on quarter as a result of the pricing embargo, which slowed linear revenue growth. Q1 FY23 is also impacted by the timing of some of the company’s B2B deals and renewals.
Other sales and services revenue (YoY) increased by 62.4 crore; QoQ revenue decreased by 250.5 crore; “The Kashmir Files,” “Valimai,” and “Bangar Raju” contributed to higher theatrical revenue in Q4 FY22.
Programming and technology costs were higher (YoY0 in Q1 FY23 and were driven by higher theatrical releases, investment in Zee5, and new launches in the linear business.
There was an increase in marketing costs on a YoY basis on account of new launches in linear business and continued investments in ZEE5.
International advertising revenue for Q1 FY23 stood at Rs. 50.6 crore, subscription revenue was at Rs 107.4 crore, and other sales & service was at Rs 23.9 crore.