Mumbai: Zee Entertainment Enterprises Ltd. (ZEEL), one of India's largest media and entertainment conglomerates, reported a sharp decline in its first-quarter revenue, reflecting persistent challenges in the advertising market. The company announced a 14% year-on-year fall in consolidated revenue, which dropped to ₹1,850 crore from ₹2,150 crore in the same period last year.
The downturn was primarily attributed to a continued weakness in advertising demand traditionally the company’s largest revenue source. Advertisers, grappling with muted consumer spending and shifting their budgets toward digital and sports platforms, have increasingly pulled back from conventional television advertising, putting pressure on broadcasters like Zee.
Despite attempts to diversify and stabilize its earnings through subscription revenues and content syndication, Zee’s advertising segment continues to show signs of stress. The company has now witnessed ad revenue contraction in ten of the last eleven quarters, a trend that underscores systemic issues in India’s linear TV market.
In contrast to the advertising slump, Zee’s subscription-led revenues and international syndication deals have shown resilience. Earlier this year, the company posted an 85% increase in Q4 pre-tax profit, buoyed by strategic cost-cutting and improved monetization through its digital platform, ZEE5. However, analysts warn that without a recovery in advertising, overall growth will remain constrained.
The company’s financial woes also arrive at a sensitive time as Zee continues efforts to rebuild investor confidence following the collapse of its proposed merger with Sony Group’s India operations earlier this year. That deal had promised to create a media powerhouse capable of challenging digital disruptors and global streaming giants.
Looking ahead, Zee has indicated its intent to focus on high-return content creation, optimize operational costs, and invest in digital expansion. A cautious re-entry into regional sports broadcasting is also being considered to regain audience engagement and unlock new revenue streams.
As media consumption habits evolve and competition intensifies from both domestic players and global OTT platforms, Zee’s ability to adapt its content and monetization strategy will be key to weathering the ongoing storm in India’s advertising ecosystem.