ZEEL (Zee Entertainment Enterprises Limited) is strategically reassessing its overall cost structure across various business facets, with a focused plan to reset to a lower cost baseline by FY25. This initiative spans key areas such as technology, content, marketing, and personnel.
Additionally, the company that is navigating the fallout from the terminated merger deal with Sony, is actively recalibrating the digital/OTT cost structure within Zee5.
“We are exploring and evaluating alternative content monetisation avenues for our rich content library while
balancing our longer-term strategic objectives,” said the company in their earning update document.
The company is also looking at moderating their third-party content acquisition as part of its comprehensive cost optimisation strategy.
In a bid move to enhance its financial performance, ZEEL has also set some ambitious targets. These include achieving an 18 percent-20 percent EBITDA margin by FY26.
The company reported a Q3 FY24 EBITDA margin of 10.2 percent.
The EBITDA margin, is a measure of a company’s operating profit as a percentage of revenue. The company’s steady-state aspiration also involves targeting an 8 percent-10percent overall revenue CAGR with its current portfolio.