Collapsing margins, weak advertising environment, net loss of Rs 73 Cr….. Lots of trouble for broadcaster
EBITDA margins crashed into single digits. The fourth quarter recorded EBITDA margins of 7.2%, compared to 21% in the same quarter last year. Management attributes the weak performance to a weak advertising environment, negligible subscription growth and high investment in its OTT platform, Zee5.
Zee Entertainment again announced weak operational performance in its latest quarter. The fourth quarter of FY23 saw its revenue drop by 9% to Rs 2,112 crore on an annual basis. This includes a 10% drop in advertising revenue, fixed subscription revenue, and a 26% drop in revenue from other sales and services.
Earnings before interest, taxes, depreciation and amortization fell 69% year-on-year to Rs 152 crore from the CNBC-TV18 poll of Rs 192 crore. EBITDA margins crashed into single digits. The fourth quarter recorded EBITDA margins of 7.2%, compared to 21% in the same quarter last year.
With higher amortization and lower other income, the fourth quarter recorded a net loss of Rs 73 crore from continuing operations, compared to a net profit of Rs 244 crore in the corresponding quarter of last year. Additionally, an exceptional item of Rs 90 crore was reported in the fourth quarter.