Q1 2027 Zee Entertainment Enterprises Limited Earnings Call Transcript
Key Points
- ZEE5 delivered a 58% year-on-year revenue growth in Q1 FY27, marking its third consecutive quarter of profitable growth with an EBITDA of INR44 million.
- The company achieved an all-time high network viewership share of 20% during the quarter, the highest in seven years, driven by strong content and the FIFA World Cup.
- Zee TV maintained its leadership in prime time for over 32 consecutive weeks, with top-rated shows like 'Ganga Mai Ki Betiyan' and 'Vasudha'.
- Subscription revenue grew 16% year-on-year, supported by higher ARPU and subscriber growth on ZEE5, along with increased pricing in the linear business.
- The FIFA World Cup 2026 reached over 400 million consumers across platforms, significantly boosting engagement and positioning Zee as a key sports destination.
- The company secured long-term sports rights for FIFA events until 2034, along with Bundesliga and Serie A, providing a strategic growth avenue.
- Cash and treasury investments remain robust at INR22.1 billion, reflecting a strong balance sheet and financial stability.
- The music business achieved 54 billion video views and over 177 million YouTube subscribers, with healthy profitability and a diversified catalog.
- Advertising revenue declined 11% year-on-year due to the Middle East conflict and cautious advertiser spending, impacting overall profitability.
- EBITDA margins fell to 4.1% due to operating deleverage from the ad revenue decline and increased costs related to FIFA and sports channel launches.
- Operating costs increased 15% year-on-year, driven by higher advertising and publicity spends, as well as expanded content offerings.
- The company faces uncertainty regarding fundraising plans, as it awaits regulatory clarification and has filed an appeal with the Securities Appellate Tribunal.
- The sports business is still in early stages, and profitability is not expected in the near term, with significant costs associated with rights acquisitions.
- The FIFA World Cup had limited time for advertising monetization, with only 10 days between rights acquisition and the event start, impacting ad revenue potential.
- The company refrained from providing EBITDA margin guidance for the full year due to market uncertainty, indicating a lack of visibility.
- The Star arbitration case remains unresolved, with an outcome expected only in Q3, adding legal and financial uncertainty.
Ladies and gentlemen. Good day and welcome to the Q1 FY27 Earnings Conference Call of Zee Entertainment Enterprises Limited. (Operator Instructions)
Please note that this conference is being recorded.
I now hand the conference over to Mr. Ankit Arora, Head of Investor Relations from Zee Entertainment Enterprises Limited. Thank you, and over to you, Mr. Ankit.
Thanks, Sagar. Hello, everyone. Welcome to our Q1 FY27 earnings discussion. We hope you have had an opportunity to review the results. We have with us today our CEO, Mr. Punit Goenka, along with senior management team.
We will start with the opening remarks from Mr. Goenka, followed by commentary on operating and financial performance by Mr. Mukund Galgali, our Deputy CEO and CFO. And subsequently, we will open the floor for question-and-answer session.
Before we get started, I would like to remind everyone that some of the statements made or discussed on today's conference call will be
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