Zee sees another exit | Mint
NEW DELHI : Punit Misra, president of content and international markets at Zee Entertainment Enterprises Ltd (ZEEL), has quit the company. During his tenure, Misra was instrumental in managing content for Zee’s linear television networks and its digital platform, ZEE5, catering to both domestic and international audiences. He also spearheaded the company’s global business initiatives.
Over the past few weeks, Zee, reportedly looking to prune expenses and streamline verticals, has seen a number of senior level exits, including Rahul Johri, president, business, and Nitin Mittal, president and group chief technology officer.
In a recent earnings call, the company said it is charting a three-pronged approach – cutting costs, reducing overlaps between businesses, and enhancing quality to regain margins—following the collapse of its merger with Sony Pictures Entertainment.
“Going forward, there will be a sharper emphasis on frugality, with a crystal-clear focus on quality and output. Across verticals – including technology, content and marketing – we are implementing steps to optimize spends and enhance the return on investments. A sound recalibration of the OTT cost structure will be an integral part of this process,” Punit Goenka, managing director and CEO of Zee Entertainment Enterprises, had said.
The company also aims to improve synergies and reduce overlaps between businesses, he had said.
“On the revenue side, we will take steps to increase value delivery to our advertisers, apart from exploring alternative content monetisation avenues. This also includes leveraging the strength and reach of our platforms,” Goenka had said.
In January, Sony Pictures Entertainment formally terminated its merger agreement with Zee Entertainment after months of debate on the appointment of a chief executive for the merged entity.
Goenka emphasized that an improvement in margins will likely reflect in the earnings from the second half of fiscal year 2025. The company is targeting an earnings before interest, taxes, depreciation, and amortization (Ebitda) margin of 18%-20% Ebitda margin by FY26.
Zee’s net profit dipped 6.4% year-on-year to ₹53.4 crore in the third quarter of FY24. Operating revenue stood at ₹2,045.7 crore in the three months to December, compared with ₹2,108.8 crore a year ago.
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Published: 05 Apr 2024, 12:33 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.