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Zee Entertainment reported a 91.86 % decline in its consolidated net profit at Rs 24.32 crore for the December quarter, on account of higher content cost and investment in its OTT platform.

The company had reported a net profit of Rs 298.98 crore in the October-December quarter a year ago, it said in a regulatory filing.

Its total income was marginally down at Rs 2,127.23 crore during the quarter under review as against Rs 2,130.44 crore in the corresponding quarter.

According to the company, “challenging macro economic environment continues to impact operating performance.”

Its programming and technology costs increased Year-on-Year (YoY) due to higher content costs in movies and linear and continued investment in its OTT platform Zee5, the company said in its earnings update for Q3FY23.

Its revenue from advertisement was down 15.62 % at Rs 1,063.82 crore in the October-December quarter. It was Rs 1,260.80 crore in the corresponding quarter a year ago.

“Ad Revenue YoY growth impacted due to FTA withdrawal (Zee Anmol) and a slowdown in FMCG spending due to challenging macroeconomic environment,” it said.

While its subscription revenue was up 13.19% at Rs 894.40 crore. It was at Rs 790.15 crore in Q3 of FY2022.

This was “aided by underlying organic growth in Zee5, Zee Music and by recognition of subscription revenue from Siti network.”

Its revenue from ‘other sales and services’ was up two-fold in the third quarter of FY23 at Rs 152.95 crore. This was “aided by higher syndication revenue”, it added.

ZEEL’s total expenses were at Rs 1,871.81 crore, up 10.03 % in FY23.

Shares of Zee Entertainment Enterprise Ltd on Monday settled 3.45 % down at Rs 218.55 on the BSE.