Punit Goenka, CEO, Zee Entertainment, on Thursday underscored his commitment to achieving the revenue (8-10%) and margin targets (18-20%) set by the company over the next three years, as it steers through an evolving domestic media market.
Addressing shareholders at the 42nd annual general meeting (AGM), Goenka, who resigned as Zee managing director last week, said that the aim of the company was to deliver a “consistently profitable performance”, centred around frugality, optimisation and a focus on quality content. Goenka had withdrawn himself from reappointment as the MD ahead of the AGM.
Calling the ongoing legal challenge with Star India as “untenable”, Goenka told shareholders that the company was taking relevant advice from legal experts. Star India had recently initiated arbitration against Zee seeking $940 million in damages over the terminated ICC TV rights deal.
Goenka also indicated that new growth engines such as digital and music would drive profitability in the future for Zee, even as linear television remained the largest contributor to both revenue and margin at the moment.
Highlighting Zee5 as a key growth driver, Goenka said that “peak investments” into the digital platform had been done and that quarterly losses pertaining to Zee5 were reducing.
“By FY25, we expect Zee5 to align with our financial expectations,” he said.
Goenka also highlighted the broader opportunities available to Zee due to its presence in 190 countries and operations across 20 languages. “Our ability to resonate with audiences, coupled with a strong free cash generation profile and a healthy balance sheet, positions us to capitalise on industry growth opportunities,” he said.
Goenka also indicated that Zee was testing the waters with regard to the role of artificial intelligence (AI) in content creation. “AI has long-term potential, but these are early days. We need AI use cases to mature before they can be fully integrated into our operations,” he said.
He also said that Zee was integrating global best practices into its content strategy to engage viewers.
“We continue to evaluate content trends across markets, such as the popularity of micro-dramas in China, and adopt best practices to cater to evolving audience preferences,” Goenka added.