Zee's Q1 Profit Falls To Rs 74.3 Crore Despite FIFA Boost And 4.8% Revenue Growth

Zee Entertainment Enterprises Ltd. (ZEEL) delivered a 4.8% year-on-year (YoY) increase in total income to Rs 1,938.5 crore for the first quarter of FY27, courtesy of strong subscription growth and widespread viewership of the FIFA World Cup 2026. Operating revenue grew 5% YoY to Rs 1,907.3 crore in Q1FY27. 

ZEE5 saw 58% YoY revenue growth to Rs 457.1 crore in Q1 FY27.

The profit for the period, though, dropped 48% YoY to Rs 74.3 crore compared to Rs 143.7 crore in the year-ago quarter, impacted by higher promotional outlay.

FIFA World Cup 2026 reached over 400 million viewers in India across linear television and digital platforms, validating the company's high-profile sports investment.

Across platforms, the broadcast of FIFA World Cup 2026 drew approximately 50 billion minutes of watch time. In its earnings presentation, the company said 73% of Indians feel highly positive about the 'Z' brand for bringing the FIFA World Cup 2026 to domestic viewers.

Zee Entertainment Enterprises will showcase key FIFA events for eight consecutive years, from 2026 to 2034.

It expects the FIFA World Cup 2026 to make a more significant contribution in Q2 than in Q1, influencing both income and expenditure. The company said it had just 10 days to generate revenue from the tournament during the first quarter, while the knockout rounds and associated sponsorship deals are expected to provide a stronger boost in Q2.

"We had 10 days before FIFA went on air. Which means that there was hardly any time for monetisation on the advertising front. While we were able to monetise it very well on the subscription side, the advertising front obviously would have taken some kind of timeline for it to start to fire. We on Bundesliga and Serie A have enough time in our hand, and therefore we are confident that we should be able to monetise that much better," said Punit Goenka, CEO, Zee Entertainment Enterprises.

Subscription revenue rose by 16% year-on-year to Rs 1,136.9 crore in Q1FY27. Advertising revenue declined by 11% YoY to Rs 671.4 crore in Q1 FY27.

"Coming to advertising revenues, it declined by 11% year-on-year, largely due to the Middle East conflict severely impacting us during April and May, as the advertisers remained very cautious. 

"In June, there were some green shoots which were visible post the acquisition of FIFA World Cup 2026 digital and broadcasting rights, wherein advertisers actively engaged with us to secure premium sponsorship opportunities across platforms," Mukund Galgali, Deputy CEO and CFO, Zee Entertainment Enterprises, said during the Q1FY27 earnings call.