Mumbai: Zee Entertainment Enterprises plans to allocate 40% of its free cash flow (FCF) toward growth capital for regional content, music, digital platforms, and international expansion, as part of its latest strategic roadmap shared with investors.
In its investor presentation, Zee said it will also set aside 25-30% of net profit for dividends. It will also direct 5% of growth capital for research and development in content creation.
For FY25, ZEEL reported a net profit of ₹679 crore and a normalised FCF of ₹882 crore, or 1.3 times its profit. Cash and cash equivalents stood at ₹2,400 crore as of March 2025.
The company said its investments would primarily focus on core business areas, targeting a 2-3 year payback period, with active participation from the board in evaluating opportunities. Zee has identified several areas for potential growth, including syndication, user-generated and short-form content, improved monetisation on its OTT platform ZEE5, and deeper engagement with regional audiences. Unified content creation across TV and digital is also a part of the strategy, with efforts to scale both long- and short-form formats.
Additional focus areas include strengthening its direct-to-consumer (D2C) and intellectual property (IP)-based offerings, increasing content in films and music, and exploring new areas such as live events.
ZEEL also said it would enhance corporate governance, work on strengthening its HR policy framework, and evaluate value-accretive M&A options to support scalable growth. "We are capitalising on this strengthened foundation to drive future growth by balancing investments with a healthy margin profile. Our efforts remain directed towards sharpening the content, driving reach across platforms, and enhancing monetisation through existing and newer avenues," Zee Entertainment CEO Punit Goenka said during the company's Q4 earnings call on May 8.
In FY25, ZEEL's advertising revenue declined by 11%. To offset the softness in ad revenue, the company aims to diversify its client base by aiming to double contributions from retail advertising by FY28.
This, the company said, will include structured ad deals involving equity partnerships, along with localised advertising strategies such as geo-targeting and influencer-based campaigns.
The company is also working on building leadership capacity, combining internal promotions with targeted external hiring. ZEEL is expanding its ad-sales team and will also have dedicated Chief Business Officers for areas such as syndication, short-form video, user-generated content, and gaming.
The company has 2,500 employees, having laid off 15% of its staff last year in a cost-cutting exercise.
In its investor presentation, Zee said it will also set aside 25-30% of net profit for dividends. It will also direct 5% of growth capital for research and development in content creation.
For FY25, ZEEL reported a net profit of ₹679 crore and a normalised FCF of ₹882 crore, or 1.3 times its profit. Cash and cash equivalents stood at ₹2,400 crore as of March 2025.
The company said its investments would primarily focus on core business areas, targeting a 2-3 year payback period, with active participation from the board in evaluating opportunities. Zee has identified several areas for potential growth, including syndication, user-generated and short-form content, improved monetisation on its OTT platform ZEE5, and deeper engagement with regional audiences. Unified content creation across TV and digital is also a part of the strategy, with efforts to scale both long- and short-form formats.
Additional focus areas include strengthening its direct-to-consumer (D2C) and intellectual property (IP)-based offerings, increasing content in films and music, and exploring new areas such as live events.
ZEEL also said it would enhance corporate governance, work on strengthening its HR policy framework, and evaluate value-accretive M&A options to support scalable growth. "We are capitalising on this strengthened foundation to drive future growth by balancing investments with a healthy margin profile. Our efforts remain directed towards sharpening the content, driving reach across platforms, and enhancing monetisation through existing and newer avenues," Zee Entertainment CEO Punit Goenka said during the company's Q4 earnings call on May 8.
In FY25, ZEEL's advertising revenue declined by 11%. To offset the softness in ad revenue, the company aims to diversify its client base by aiming to double contributions from retail advertising by FY28.
This, the company said, will include structured ad deals involving equity partnerships, along with localised advertising strategies such as geo-targeting and influencer-based campaigns.
The company is also working on building leadership capacity, combining internal promotions with targeted external hiring. ZEEL is expanding its ad-sales team and will also have dedicated Chief Business Officers for areas such as syndication, short-form video, user-generated content, and gaming.
The company has 2,500 employees, having laid off 15% of its staff last year in a cost-cutting exercise.
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