2024-11-28 19:59:10 :
MUMBAI: At the 42nd annual general meeting (AGM) of Zee Entertainment Enterprises Ltd (ZEEL), CEO Punit Goenka addressed shareholders’ concerns, outlined the growth strategy as well as an update on the ongoing legal challenges. He reiterated the company’s commitment to navigating the changing media landscape while creating long-term value for stakeholders.
In terms of financial projections, Goenka outlined ZEEL’s goal of achieving 8-10% revenue growth and 18-20% profit margins over the next three years. While television remains the largest contributor to revenue and profit, he said the digital and music businesses are poised for faster growth. He added: “All businesses in our portfolio are expected to grow aggressively in the near term, with digital and music likely to outpace the linear TV space.”
Goenka stressed the importance of focusing on new growth engines, including digital platforms and music, to drive future profitability. “We are streamlining our cost structure, optimizing investments and accelerating growth in key areas such as music and digital. These measures are designed to restore the company’s growth and profit profile and deliver stronger shareholder value,” he said. Highlighting ZEE5 as a key driver, he added: “The investment peak for ZEE5 has passed and quarterly losses are trending downward. By FY25, we expect ZEE5 to be in line with our financial expectations.”
He also highlighted that as ZEEL has a strong presence in 190 countries and has presence in 20 languages, the company has access to wider opportunities. “Our ability to resonate with our audience, coupled with strong free cash generation and a healthy balance sheet, positions us to capitalize on industry growth opportunities,” he said.
Goenka also termed Star India’s ongoing legal challenge against Zee in arbitration seeking $940 million in damages as “untenable”.
“The company is taking advice from relevant legal experts and is confident in the outcome,” he said, adding that ZEEL would continue to keep stakeholders informed of progress.
He also touched on the broader disruption facing the media industry, noting that ZEEL’s diversified product portfolio and strong content capabilities give it a competitive advantage. “Our broad product portfolio, comprehensive reach across the value chain and deep relationships within the ecosystem position us well to navigate these changes,” he said.
On stepping down as managing director and continuing as CEO, Goenka explained that the decision was a personal one. “This will allow me to focus more of my time and energy on the business and operations of the company and not be distracted by some of the other issues we’ve been dealing with,” he said.
Focus on artificial intelligence
ZEEL is also cautiously exploring the role of artificial intelligence (AI) in content creation. “AI has long-term potential, but it’s still early days. We need AI use cases to mature before it can be fully integrated into our operations,” Goenka said.
He highlighted ZEEL’s commitment to innovation and noted the company’s efforts to incorporate global best practices into its content strategy. “We continue to evaluate content trends in various markets, such as the popularity of micro-series in China, and adopt best practices to meet changing audience preferences,” he explained.
The company reiterated its dividend policy of distributing 25% of consolidated profits, as well as its focus on corporate social responsibility initiatives. “Our CSR priorities include women’s empowerment, rural development and preservation of art and culture,” Goenka said.
At the end of the AGM, Goenka expressed full confidence in ZEEL’s strategic direction and ability to overcome challenges. “Despite disruptions, we remain focused on streamlining costs, optimizing investments and driving growth. We are committed to creating long-term value for our shareholders,” he said.
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