Zee Entertainment Enterprises Limited · NSE:ZEEL
Zee Entertainment Enterprises — Q2 FY25 Earnings Presentation
21 slides from Zee Entertainment Enterprises's earnings presentation, Oct 18, 2024
Slide 1: Exchange filing letter: audio recording of conference call
October 18, 2024 The Listing Department The Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Mumbai 400 001 Bandra (East), Mumbai – 400 051 BSE Scrip Code Equity: 505537 NSE Symbol: ZEEL EQ Dea
Slide 2: Earnings Update for Q2 FY25
Earnings Update for Q2 FY25 Zee Entertainment Enterprises Limited – 18 October 2024
Slide 3: Disclaimer
Disclaimer Safe Harbor Statement: This Release/Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and
Slide 4: Content
Making Steady Progress 4 Q2 FY25 Key Performance Highlights 7 Content Business Performance 8 H1 & Q2 FY25 Financial Performance 13 Growth Strategy 19
Slide 5: Making Steady Progress towards our Financial Aspirations (1/3)
Making Steady Progress towards our Financial Aspirations (1/3) Our aspiration Progress we have made Subscription Revenue • YoY growth has exceeded 9% YoY in last 3 quarters Target 8-10% overall revenue CAGR with Revenue growth current portfolio Advertising Revenue • Macro Ad environment softness has
Slide 6: Making Steady Progress on Financial Objectives (2/3)
Making Steady Progress on Financial Objectives (2/3) Our aspiration Progress we have made Overall Business EBITDA Margin • Prudent cost discipline and focused execution has enabled us 16.0% Aspire to deliver 12.8% to clock 630 bps improvement in 10.2% 9.7% industry-leading Profitability 18-20% EBITD
Slide 7: Making Steady Progress on Financial Objectives (3/3)
Making Steady Progress on Financial Objectives (3/3) Our aspiration Progress we have made Content Inventory and Content inventory Advances (Rs Bn) and advances • Content Inventory and Advances 75.2 Continue to maintain a 74.2 Healthy Balance Sheet and Continues to decline driven by Balance Sheet 70.
Slide 8: Q2 FY25 Key Performance Highlights
Q2 FY25 Key Performance Highlights Profitability driven by effective cost management Healthy Balance sheet and cash generation 16.0% 61% Rs 17.8 Bn* 1.2x EBITDA Margin, up 240 bps YoY; YoY Growth in Q2 FY25 PAT from Cash and Cash Equivalent as of Sept’24 FCF/ PAT in H1 FY25 Q2 FY25 EBITDA of Rs 3,21
Slide 9: Business Performance
Business Performance From giving India its first private satellite TV channel in 1992, to reaching 1.3 billion viewers around the world through linear and digital platforms. ZEE, today, is the global entertainment go-to, with an integrated team creating and serving extraordinary content.
Slide 10: Domestic Linear: TV Landscape Stable; Zee Network Share Up 100 bps QoQ
Domestic Linear: TV Landscape Stable; Zee Network Share Up 100 bps QoQ, Well Placed to Capitalise On Ad Environment Recovery Industry TV Reach and Impressions ZEE Network Share Weekly Reach (mn) Weekly Impressions (bn) 17.9% Network share impacted by Cricket & Election 17.4% 16.8% 17.1% 16.4% 764 29
Slide 11: ZEE5: Significant Progress Made Towards Streamlining the Overall Cost Structure
ZEE5: Significant Progress Made Towards Streamlining the Overall Cost Structure ➢ Healthy trends in usage and engagement metrics continue. ➢ Focused on maintaining a balanced cost structure, to sustain long-term growth. Key Q2 FY25 revenues ➢ Expect performance improvement momentum to sustain in H2,
Slide 12: ZEE Studio: Hindi and Other Language Movies Released During Q2 FY25
ZEE Studio: 2 Hindi and 2 Other Language Movies Released During Q2 FY25 Other Hindi Language Movies Movies Produced by Produced by Produced by Distributed by ZEE Studio ZEE Studio ZEE Studio ZEE Studio 11
Slide 13: Zee Music Company (ZMC)
Zee Music Company (ZMC) 2nd Largest Music Label with ~156 Mn Subscribers on YouTube Q2 FY25 Key Catalogue Additions All ZMC YouTube Channels Video Views & Subscribers Count 46 45 46 153 156 142 Q2 FY24 Q1 FY25 Q2 FY25 Total Subs count (Mn) Total Video Views during the Quarter (Bn) ZMC added 3.5 Mn Y
Slide 14: H1 & Q2 FY25 Financial Performance
H1 & Q2 FY25 Financial Performance
Slide 15: H1 FY25 EBITDA Margin at 14.3%; Continued Sharp Focus on Frugality
H1 FY25 EBITDA Margin at 14.3%; YoY Increased by 330 bps, Continued Sharp Focus on Frugality, Optimization and Quality Content Across the Business (INR Million) H1 FY24 H1 FY25 YoY Operating Revenue Breakup (Rs Mn) Operating Revenue 44,216 41,312 -7% Advertising Subscription Other Sales & Services E
Slide 16: Q2 FY25 EBITDA Margin at 16.0%; Effective Cost Management
Q2 FY25 EBITDA Margin at 16.0%; QoQ Increased nearly by 320 bps; Effective Cost Management Aided the Profitability Operating Revenue Breakup (Rs Mn) (INR Million) Q2 FY24 Q1 FY25 Q2 FY25 QoQ YoY Operating Revenue 24,378 21,305 20,007 -6% -18% Advertising Subscription Other Sales & Services Expenditu
Slide 17: Q2 FY25: Margin Improvement Journey Continues Despite Soft Macro Environment
Q2 FY25: Margin Improvement Journey Continues Despite Soft Macro Environment Advertising • Domestic advertising revenue for the quarter declined by 9% YoY, impacted by muted Ad spending environment in Q2. revenues • While Ad Spending is picking up with onset of festive season, sustained recovery rem
Slide 18: Condensed Balance Sheet
Condensed Balance Sheet Assets (Rs. Mn) Mar'24 Sept'24 Liabilities (Rs. Mn) Mar'24 Sept'24 Non-Current Assets Equity Capital 1,08,728 1,12,573 Fixed assets 12,137 10,943 Non-Current Liabilities Investments 391 381 Lease Liab/Other borrowings 1,621 2,575 Other financial assets 603 1,293 Provisions 1,
Slide 19: Content Inventory and Advances Continues to Decline in Q2 FY25
Content Inventory and Advances Continues to Decline in Q2 FY25 Driven by Optimised Acquisition Rs 79.6 Bn Decreased by Rs 4.1 Bn Rs 74.2 Bn Rs 72.5 Bn during H1 FY25 Rs 70.5 Bn Rs 70.1 Bn Rs 64.1 Bn Rs 62.7 Bn 8% 7% 7% 7% 17% 14% 12% Content Advances 13% 16% 14% 12% 7% 9% 11% 14% 14% 13% Movies Prod
Slide 20: Growth Strategy
Growth Refreshing & Sharpening content offerings across Investing in high growth segments Monetisation of existing IP & Content linear and digital business Strategy • New Show Launches in • Digital (ZEE5) • Monetization avenues Hindi and language • International Business for our rich content markets
Slide 21: Thank You
Extraordinary Together
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