Zee Entertainment Plans Cost-Cutting Measures Following Sony Merger Snub

Zee Entertainment to implement frugal approach, including cost-cutting measures and manpower optimization.

  • Zee Entertainment to implement frugal approach, including cost-cutting measures and manpower optimization.
  • Managing Director Punit Goenka hints at potential layoffs amidst plans for 18-20% EBITDA margin and 8-10% revenue growth.
  • Company reports increased profit but aims for improved margins and revenue through recalibration of cost structure.

Zee Entertainment, led by Managing Director Punit Goenka, announced plans to adopt a frugal approach following the recent Sony merger snub. Goenka hinted at potential layoffs as part of the strategy, emphasizing a focus on cost-cutting measures to achieve an 18-20% EBITDA margin and 8-10% revenue growth.

While Zee Entertainment aims for improved financial performance, Goenka stressed the need for a sharper emphasis on frugality, with a focus on quality and output. The company plans to reduce spends, re-evaluate its sports portfolio, and optimize manpower as part of the cost-cutting measures. However, Goenka clarified that while belt-tightening on manpower is inevitable, the extent of layoffs will depend on identifying overlaps within the organization.

Despite reporting a 140% increase in profit in the December quarter of FY24, Zee Entertainment aims to enhance margins and revenue through recalibration of its cost structure. Chief Financial Officer Rohit Gupta highlighted a decline in overall operating costs in Q3FY24 due to lower content costs and continuous cost optimization in Zee5. As the company navigates through these strategic adjustments, the focus remains on driving sustainable growth and maintaining fiscal prudence in an evolving media landscape.