Zee Entertainment is aiming to breakeven in its digital business, Zee5, in the current financial year, the company stated in its latest investor update. The company is also targeting higher margins, increased viewership share, and 8–10% growth in advertising revenue during the fiscal year, it said.
The update comes as Zee’s promoters prepare to increase their stake in the company from around 4% to 18.39% by investing ₹2,237 crore through a preferential allotment of 169.5 million fully convertible warrants. The warrants will be issued at ₹132 each, representing a 2.65% premium (₹3.42 per warrant) over the Sebi-prescribed floor price of ₹128.58.
In FY25, Zee5 narrowed its Ebitda loss to ₹548 crore, down from ₹1,105 crore in FY24. The company has been aggressively cutting costs, with a target of achieving an 18–20% Ebitda margin in FY26, up from 14.6% in FY25, according to analysts tracking the company.
The company is also aiming to unlock value via the music and syndication business, it said. And is looking to increase television viewership share to 17.5%, in comparison to 16.8% share it had seen in the previous financial year.
The investor presentation states that Zee, which has evolved into a content and technology-led media powerhouse, is building a strong cash reserve to strengthen its market position. As of March 31, the company reported cash and cash equivalents of ₹2,406 crore. The board has already approved the issuance of fully convertible warrants worth ₹2,237 crore, as outlined in the update.
The company also said that it was developing new business verticals to expand its target audience and augment revenue streams. It was also looking at enhancing its content offerings to address different age cohorts and was eyeing acquisitions and partnerships to beef up its portfolio.
Shares of Zee Entertainment closed trade 12.45% up on the BSE on Monday at Rs 149.50 apiece, even as the broader BSE Sensex was down 0.62% amid rising tensions in the Middle East. The stock is up 10% so far in June and is now up for the fourth straight month, sector analysts said. Financial Express