Zee overhauling business
February 19, 2024
By Chris Forrester
Most observers do not expect there to be any resurrection of the Zee merger with Sony’s India assets. Consequently Zee Entertainment says it is to examine and review its entire structure. The aim is to focus on those divisions and elements that are the most profitable.
CEO Punit Goenka told analysts that he would be looking at a three-pronged approach, namely cutting costs, reducing overlaps and improving quality to maintain margins.
“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 optimise spends and enhance the return on investments. A sound recalibration of the OTT cost structure will be an integral part of this process,” Goenka 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,” he added. He emphasised that a gradual recovery in margins was expected to reflect in earnings from the second half of FY25 and Zee was targeting 18-20 per cent EBITDA margin by FY26.
Zee Entertainment Enterprises said that the company believed that the claims made by Sony/Culver Max Entertainment are not tenable. It noted that the claims put up won’t have any material impact on the company.