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Zee Entertainment Approves Q1 FY25 Financial Results and Acquires 20% Stake in Margo Networks

Zee Entertainment Enterprises Limited (ZEEL) has announced the approval of its unaudited financial results for the quarter ended June 30, 2024, during a Board meeting held on July 31, 2024. The Board also approved the acquisition of an additional 20% stake in Margo Networks Private Limited, making it a wholly-owned subsidiary.

Key Outcomes from the Board Meeting
During the meeting, ZEEL’s Board of Directors made several important decisions, aligning with the company's strategic goals for growth and enhanced operational control.

Approval of Q1 FY25 Financial Results

The Board approved the unaudited financial results for the first quarter of FY25, covering both standalone and consolidated figures. The company has reported positive financial performance, reflecting its ability to navigate a challenging market environment.

• Revenue: ZEEL reported a YoY increase in total operating revenue to ₹21,305 million, driven by strong performance across its TV and digital segments.
• EBITDA: The company achieved an EBITDA of ₹2,717 million, representing a 75.3% YoY growth, with margins improving by 500 basis points to 12.8%.
• Profit After Tax (PAT): PAT for the quarter stood at ₹1,257 million, marking a significant YoY increase, demonstrating ZEEL’s effective cost management and strategic initiatives.

Acquisition of 20% Stake in Margo Networks

In a strategic move to gain full control, ZEEL’s Board approved the acquisition of an additional 20% stake in Margo Networks Private Limited, making it a wholly-owned subsidiary.

• Related Party Transaction: The acquisition, a related party transaction, is conducted at arm’s length and involves the purchase of 10,000 equity shares at a face value of ₹10 each, totaling ₹1 lakh.
• Strategic Rationale: The acquisition will enable ZEEL to streamline operations, enhance administrative control, and fully integrate Margo's technology platform into its broader digital strategy.

Margo Networks Overview

Margo Networks, incorporated in 2016, provides a technology platform connecting end consumers with over-the-top (OTT) players across media, commerce, and other industries. Despite a decline in revenue from ₹21 million in FY23 to ₹9.5 million in FY24, the acquisition aims to leverage Margo's technological assets for strategic advantage.

Conclusion

ZEEL's Q1 FY25 results and the acquisition of Margo Networks highlight the company’s commitment to growth and operational excellence. The financial results reflect a solid performance across its core business areas, while the strategic acquisition strengthens its digital capabilities. Investors and stakeholders are encouraged to review the full financial results and the details of the acquisition to understand the company’s future direction.