Strong digital growth masks 48% PAT decline and ad revenue collapse

ZEE5 revenue ₹457 Cr (58% growth confirmed) with EBITDA ₹4.4 Cr achieved; aligns with prior guidance of digital profitability

Network share 20% peak claimed mid-quarter; official quarter average 17.9% (+110 bps YoY). Peak was week 22 only, not sustained

400M reach claimed (83% live on ZEE5); revenue will predominantly arrive Q2 (knockout stages). Q1 had only 10 days pre-launch; limited monetization achieved

Subscription +16% YoY confirmed; driven by ZEE5 (58% growth) + digital ARPU + linear price hikes; but broader sub growth masked by ad revenue decline (-11%)

PAT collapsed 48.3% YoY despite 4.5% revenue growth; EBITDA margin compressed to 4.1%; advertising revenue down 11% YoY due to Middle East conflict impact

No timeline given for sports profitability. Management acknowledged sports rights costs are 'high' vs regular content. FIFA cost staggered over 8 years (payment amounts not disclosed). Profitability dependent on audience monetization which is 'early days'

Q4 FY26 call expected 'continued momentum' and 'confidence in unit economics.' Q1 delivered 48.3% PAT decline YoY. Cost inflation (FIFA, sports channels, marketing) outpaced revenue growth 4-to-1.

Operating costs surged 15% (vs. revenue +4.5%) due to FIFA spend, sports channel launch, expanded content slate. EBITDA margin halved; no guidance provided for FY27 due to 'uncertainty.'

Q4 FY26 call noted ME conflict impact in March; Q1 call confirms April-May remained 'very cautious,' June 'green shoots' post-FIFA. But -11% YoY net is clear miss vs. implicit 'normalization' message.

Management has emphasized sports as 'strategic initiative with immense potential to boost growth' but when pressed on profitability, Punit said 'will not be able to give you a date right now... very early days.' No numbers, no timeline.

Q4 FY26 flagged 'ZEE5 achieved breakeven, operational profitability.' Q1 confirms 58% revenue growth and ₹4.4 Cr EBITDA despite high FIFA/Bullet marketing spend. Digital guidance maintained.

Sports business will be profitable sustainably, very prudent approach. Won't give date now; too early. Some marquee advertisers may exit post-FIFA, but confident those who got value will stay as long as we deliver.

Absolutely right. Three things have changed landscape. Sports rights costs high vs regular content but if prudent in selection, will be better. Football now reaches 400M vs 40-50M before—even half of that is large enough to monetize.

Written to regulator seeking clarification; no response yet. Filed appeal to SAT (Securities Appellate Tribunal). Hopeful of resolution sooner rather than later. Based on outcome, will determine future course of action.

As long as we give sustainable content of consumer preference, renewal base stays. Seen strong renewals post-FIFA, gives confidence sustainable growth. Ad front more challenging given West Asia, but confident market share gain + festive season will help. Also looking at international territories for growth.

Language packs certainly aided but can't share numbers—highly confidential and competitive information. Has certainly aided. On linear price hikes, regulated by NTO; next NTO cycle February 2027, will look at price hikes then.

Robust internal transfer pricing mechanism governs P&Ls of respective businesses. Businesses monitor costs/revenues to achieve plans. No free lunch—ZEE5/linear pay ZEE Music marketplace rate. Working on additional disclosures for transparency. On strategic actions, evaluating multiple but nothing to disclose now.

Inventory increase due to FIFA outflows in Q1; will flow through P&L in Q2. Otherwise normal business. D&A: past heavy capex at tech centre flows through amort. Cyclical capex will impact. Don't expect material impact on results. Current run rate in the range is what to expect.

More than doubled subscriber base last quarter; large part due to FIFA but also non-sports consumer base coming in. On B2B, in discussion with partners but can't disclose for confidentiality. On stickiness, our slate launches kept viewers engaged; teams continue work on retention.

10 days before FIFA went on air means hardly any time for ad monetization. Could monetize subscription very well but ad front would have taken timeline to fire. On Bundesliga/Serie A, have enough time. Confident should be able to monetize much better.

Usual approval valid for 1 year. Since matter is sub judice (approached regulator and Tribunal), will refrain from any further disclosure at this point.

Cautiously optimistic will stabilize coming period. Market share improved, festive season approaching, West Asia war sorting itself out. All 3 factors should impact ad front going forward.

With this kind of uncertainty in market, will not be in position to give guidance on EBITDA margin for year.

Rights for 8 years, payments over 8 years. Value can't share—highly confidential. 39 events till 2034 including Women's World Cup Brazil next year, World Cup 2030 (centenary, Morocco/Portugal/Spain). Payments staggered; higher amount for 2030 World Cup for sure.

By Q2 it will be. Significant portion Q2 both revenue and cost perspective compared to Q1.

Knockout stages were Q2, so traction in advertising picked up. Had limited time before June 11 start. Traction picked up Q2. Also subscription revenue on accrual basis; will see significant boost Q2 vs Q1.

Star arbitration hearings held July which we disclosed. Further procedural steps will follow. Looking at outcome possibly in Q3 of this year.

Very difficult to say in legal matter. Understanding final hearing done, final submissions 1-1.5 months. Post which if tribunal needs more hearings, don't know. Sub judice matters, very difficult to comment or commit.

Thought about demerger of music business but right now no strategic reason for us to demerge outward. Not pursuing unless some corporate action transpires.

Management stated 'cautiously optimistic' on ad recovery (West Asia stabilization, festive season, improved market share). Signaled Q2 will see significant FIFA revenue uplift vs Q1 (10-day runway) but no full-year number.

Punit explicitly stated 'with this kind of uncertainty in the market, I will not be in position to give guidance on EBITDA margin for year.' Current margin 4.1%; indicates management unsure if can recover toward historical 7-8% range given cost pressures.

CFO stated past tech centre capex is cycling through amort/depreciation; current run rate expected ongoing but no significant material impact. No forward capex commentary given.

FIFA rights secured for 8 years (39 events till 2034) with staggered payments; profitability timeline undefined. Management acknowledged sports costs 'high' vs regular content. Break-even date not committed. Risk: sunk costs without proportionate monetization.

Ad revenue declined 11% YoY despite 20% network share peak, indicating demand weakness not market-share driven. Middle East conflict cited; uncertainty persists. Q1 was 'peak uncertainty' but recovery timing unclear.

EBITDA margin compressed from 7-8% historical to 4.1% Q1 due to 15% operating cost surge (FIFA spend, sports channels, content expansion). Management provided no margin guidance for FY27 citing 'uncertainty,' signaling lack of confidence in near-term recovery.

Preferential allotment approval (18-month window) conflicts with 12-month regulatory constraint per CFO. Management approached regulator for clarification and filed appeal to Securities Appellate Tribunal (SAT); outcome timing uncertain. Star arbitration hearings completed July; outcome expected Q3 FY27.

Some marquee advertisers may have come only for FIFA. Post-FIFA, retention depends on continued value delivery. Punit confident but offered no contractual evidence or forward commitments. If advertisers exit post-World Cup, ad revenue could fall further.