- Zee Entertainment demands over Rs 68 crore refund from Star for alleged breach of ICC broadcasting rights contract.
- Management claims Star failed to fulfill necessary approvals and documentation, leading to contract repudiation.
- Despite the dispute, Zee expects no significant adverse impact, reporting Q3 net profit rise to Rs 58.5 crore.
Zee Entertainment has initiated legal action against Star, seeking a refund of over Rs 68 crore over a dispute regarding the broadcasting rights of ICC events. Zee alleges that Star breached the contract by failing to obtain required approvals and execute necessary documentation, leading to the contract’s repudiation. Consequently, Zee has informed Star that the agreement cannot proceed and has demanded the refund.
Despite the legal tussle, Zee remains optimistic about its financial outlook, stating that it does not anticipate any substantial adverse impact from the dispute. This assertion comes amidst Zee Entertainment’s positive Q3 financial report, which witnessed a significant rise in net profit to Rs 58.5 crore from Rs 24.32 crore in the previous fiscal year’s Q3. The company attributes this growth to an increase in subscriptions, offsetting a subdued advertising environment. Additionally, Zee reported a 15% rise in income to Rs 223 crore compared to Rs 194 crore in Q3 FY23.
As the legal battle unfolds, Zee Entertainment continues to focus on its operational performance and strategic growth initiatives, aiming to navigate through the challenges while maintaining its financial stability and market position.
