Financial Performance Summary

Quarter Ended: June 30, 2026 (Q1 FY27)

Key Financial Metrics:

  • Digital revenue grew 58% year-on-year to ₹4,571 million
  • Subscription revenue increased 16% year-on-year
  • Advertising revenue declined 11% year-on-year
  • EBITDA stood at ₹789 million with margins at 4.1%
  • PAT reported at ₹743 million
  • Cash and treasury investments totaled ₹22.1 billion as of June 2026, comprising:
  • Cash balance: ₹4.4 billion
  • Fixed deposits and other treasury investments: ₹5.9 billion
  • Mutual fund investments: ₹11.8 billion

Operational Highlights

Digital Business (ZEE5):

  • Achieved third consecutive quarter of profitable growth
  • Released 38 shows and movies including 15 original shows across 7 languages
  • FIFA World Cup 2026 reached over 400 million consumers in India
  • More than doubled subscriber base in the quarter
  • Digital EBITDA reported at ₹44 million despite increased marketing spend

Linear Broadcasting:

  • Achieved all-time high network share of 20% during the quarter (17.9% for full quarter)
  • Zee TV maintained prime-time leadership for 32 consecutive weeks
  • Zee Cinema led movie genre with 27% viewership share in week 22
  • Language channels maintained top 2 positions across key markets
  • Monthly unique reach across platforms remained above 800 million

Sports Business:

  • Launched 4 new sports channels "Unite8" for FIFA 2026 broadcast
  • Secured digital and broadcasting rights for FIFA events until 2034 (39 properties total)
  • Additional rights acquired for Bundesliga and Serie A
  • 83% of FIFA viewership was live on ZEE5 despite odd match hours in India

Content Performance:

  • Hindi GEC shows 'Ganga Mai Ki Betiyan', 'Vasudha' and 'Tum Se Tum Tak' occupied top 3 spots
  • Movie releases included hits like "Tumbad Chi Manjula" & "Rakaasa" (9 total movies released)
  • Music business garnered 54 billion total video views with 177 million YouTube subscribers

Strategic Initiatives

Sports Strategy:

  • Prudent approach focusing on value delivery over expensive properties
  • Building domestic sports calendar alongside international properties
  • Working with multiple right owners for future partnerships

Content Expansion:

  • Multilingual content slate across movies, original series, live sports, AI-powered storytelling
  • Focus on micro-dramas, kids' entertainment, live events, VFX and animation
  • International territories identified for subscription growth

Funding & Corporate Actions:

  • Shareholders approved 'Truly Yours' employee stock option plan
  • Preferential allotment resolution approved but timeline clarification sought from regulator
  • Appeal filed with Securities Appellate Tribunal regarding fundraising timeline
  • Robust internal transfer pricing mechanism between business segments

Challenges & Outlook

Current Headwinds:

  • Middle East conflict impacted advertising revenue in April-May 2026
  • Inflationary pressures affected advertiser spending patterns
  • Operating costs increased 15% due to FIFA marketing and sports channel launch
  • Programming costs increased due to expanded content offering

Future Outlook:

  • Cautiously optimistic for H2 FY27 with festive season approaching
  • West Asia uncertainty cooling off expected to benefit advertising
  • Expect continued digital growth momentum in Q2 with FIFA gains
  • NTO-led price hikes expected in linear business in February 2027

Regulatory & Legal Matters

Star Arbitration Case:

  • Hearings held in July 2026
  • Outcome expected possibly in Q3 FY27
  • Final submissions due in next 1-1.5 months

Music Business Evaluation:

  • No current plans for demerger unless corporate action transpires
  • Working on additional disclosure mechanisms
  • Strategic evaluations ongoing but no immediate actions

Q&A Session Highlights

Sports Profitability: Management emphasized prudent approach without committing to specific timeline, noting changed landscape with consolidated industry and higher customer willingness to pay.

Advertiser Retention: Some marquee advertisers may exit post-FIFA, but confidence in retaining relationships based on value delivery.

Inventory Increase: Attributed primarily to FIFA-related outflows that will flow through P&L in Q2.

FIFA Financials: Payments staggered over 8-year rights period, with significant Q2 impact expected for both revenue and costs. Knockout stages in Q2 expected to drive advertising traction.

Subscription Levers: Language packs on ZEE5 aided growth, international expansion identified as opportunity, linear price hikes tied to NTO cycles.