ZEEL aspires for 8-10% revenue growth: Punit Goenka

New Delhi: Zee Entertainment Enterprise Ltd (ZEEL) is focusing on a three-pronged approach -- frugality, optimisation and sharp focus on quality content -- for the company’s future, said its Managing Director and CEO Punit Goenka on Tuesday.

The company aspires for an 8 to 10 per cent CAGR revenue growth, with digital business growing at a much faster pace, he said.

"Going forward, there will be a sharper emphasis on frugality, with a crystal-clear focus on quality and output," said Goenka in the first earning call of the company, after the deal to merge with Sony Pictures Entertainment collapsed last month.

Across verticals – including technology, content and marketing, ZEEL is implementing steps to optimise spending and enhance the return on investments.

"The three-pronged approach will elevate and further streamline our existing capabilities in line with our robust growth plans. The results of these structured steps over the next few quarters will start reflecting in the company’s performance," Goenka said.

A sound recalibration of the OTT cost structure will be an integral part of this process, he added.

According to Goenka, a gradual recovery in ZEEL's margins is expected to reflect from the second half of FY25.

"Our FY26 aspiration will be to target 18 to 20 per cent industry-leading EBITDA margin profile," he said.

Goenka further added that ZEEL as a company is well-positioned to capitalise on the growth opportunities.

"We remain confident that ZEEL’s fundamentals remain unmatched across the industry, and the company is well equipped to compete as a major player in the sector," he said.

Harnessing the potential of the company, with the continued trust and support of its shareholders, he remains certain that ZEEL will return to its strong operating levels, generating higher value for all its stakeholders.

"A steady-state aspiration will be to target 8 to 10% CAGR revenue growth, with digital business growing at a much faster pace," he added.

ZEEL on Tuesday reported a two-fold increase in consolidated net profit to Rs 58.54 crore for the third quarter ended in December 2023. However, its total income dropped by 2.36 per cent to Rs 2,073.36 crore.