Zee Entertainment Says West Asia Conflict Hit Advertising Demand In Q4 FY26
Zee Entertainment said West Asia tensions hurt advertising demand in Q4 FY26 as the company reported weaker ad revenue, higher costs and a quarterly loss.
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Zee Entertainment Enterprises said escalating geopolitical tensions in West Asia negatively impacted advertising demand during the March quarter, leading several brands to reduce marketing spends toward the end of the period.
Speaking during the company’s post-results earnings conference call, Mukund Galgali said the geopolitical environment significantly disrupted advertising inflows during the quarter.
Advertising revenue, which contributes nearly 40 per cent of Zee Entertainment’s overall business, declined 3.5 per cent year-on-year in Q4 FY26.
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Ad Revenue Pressure:
According to a report by Moneycontrol, Galgali said advertising revenues could have recorded low single-digit growth had the West Asia conflict not intensified during the quarter.
Investor sentiment weakened sharply following the earnings announcement, with the company’s shares falling significantly on Wednesday after Zee reported a quarterly loss amid softer advertising demand and elevated operational costs.
At around 11:55 am on May 20, shares of Zee Entertainment were trading nearly 6 per cent lower at ₹82.3 apiece after declining as much as 5.35 percent earlier during the session.
The company also reported a sharp increase in advertising and publicity expenditure during the quarter, with costs rising 44 percent year-on-year.
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Streaming Revenue Rises:
According to the broadcaster, the increase was primarily linked to aggressive spending on new content launches, including the rollout of its children’s entertainment vertical KidZ, along with higher legal expenses.
Subscription revenue, however, remained relatively stable during the quarter.
Consolidated subscription income rose to ₹1,024.7 crore in Q4 FY26 compared to ₹986.5 crore in the corresponding period last year.
For the full financial year, subscription revenue increased 3.9 percent year-on-year to ₹4,079.6 crore.
The company’s streaming platform ZEE5 also showed improvement in financial performance during the quarter.
Core losses at ZEE5 narrowed sharply to ₹8.4 crore compared to ₹75.3 crore a year earlier, while platform revenue surged 71 per cent to ₹470 crore, supported by growth in paying subscribers.
Meanwhile, revenue from other sales and services declined 46.65 per cent to ₹192 crore, mainly due to lower syndication income and continued weakness in the studios business.
Overall expenses rose 19.6 percent year-on-year, driven largely by a 17 per cent increase in operational costs.
