Zee on track to achieving balanced cost structure, enhanced performance: Punit Goenka

livemint.com:

Zee Entertainment Enterprises Ltd is on track to achieving a balanced cost structure and enhancing its fiscal performance as it targets 18-20% ebitda margin by 2025-26, chief executive and managing director Punit Goenka said in an earnings call on Friday. Zee will lay off an estimated 15% of its staff as it moves to implement a leaner management structure aimed at reducing costs, the company said.

“Our focus remains firmly on enhancing performance and we have made several tough decisions to streamline the business," Goenka said. In February, Zee had said it was charting a three-pronged approach—cutting costs, reducing overlaps between businesses, and enhancing quality to regain margins—after its merger with Sony Pictures Entertainment collapsed.

Zee Entertainment Enterprises swung to a net profit of ₹13.35 crore for the quarter ended March, compared with a loss of ₹196 crore in the corresponding period last year. Total income increased 3% to ₹2,185 crore.

Domestic advertising revenue for the March quarter grew 10.6% year-on-year, driven by a continued recovery in the macro advertising environment and higher spending by clients in the fast-moving consumer goods sector, Zee said. Subscription revenue growth was driven by a pick-up in linear subscription revenue post NTO (new tariff order) 3.0 and by video-streaming platform ZEE5, the company said.

Zee's board of directors has endorsed a new organizational framework proposed by Goenka. Over the past few months, the company has seen a series of senior-level exits, including Rahul Johri, president of business; Punit Misra, president of content and international markets; Nitin Mittal, president and group chief technology officer; and Shariq Patel, chief business officer, Zee