
Punit Goenka confident about ZEE’s growth amid legal and industry challenges
Summary
- While television remains the largest contributor to both revenue and margin, Goenka stated that digital and music businesses are poised for faster growth
Mumbai: At the 42nd Annual General Meeting (AGM) of Zee Entertainment Enterprises Ltd (ZEEL), CEO Punit Goenka addressed shareholders’ concerns, outlining strategies for growth and updates on ongoing legal challenges. He reaffirmed the company’s commitment to navigating the evolving media landscape while creating long-term value for stakeholders.
On financial projections, Goenka outlined ZEEL’s goal of achieving 8-10% revenue growth and an 18-20% margin over the next three years. While television remains the largest contributor to both revenue and margin, he stated that digital and music businesses are poised for faster growth. “All businesses in our portfolio are expected to grow positively in the near term, with digital and music likely to outpace the linear television segment," he added.
Goenka emphasized the importance of focusing on new growth engines, including digital platforms and music, to drive future profitability. “We are streamlining cost structures, optimizing investments, and accelerating growth in key areas like music and digital. These steps aim to restore the company’s growth and margin profile and deliver stronger shareholder value," he said. Highlighting ZEE5 as a key driver, he added, “The peak investments for ZEE5 are behind us, and quarterly losses are trending downward. By FY25, we expect ZEE5 to align with our financial expectations."
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He also underscored the broader opportunities available to ZEEL due to its strong 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 capitalize on industry growth opportunities," he said.
Goenka also called the ongoing legal challenge, where Star India has initiated arbitration against Zee seeking $940 million in damages, as “untenable."
“The company is taking advice from relevant legal experts and remains confident in the outcomes," he stated, adding that ZEEL would continue to keep stakeholders informed about developments.
He also touched on the broader disruptions facing the media industry, noting that ZEEL’s diversified portfolio and strong content capabilities give it a competitive edge. “Our broad portfolio, comprehensive presence across the value chain, and deep relationships within the ecosystem position us well to navigate these changes," he said.
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On stepping down from his position as managing director while continuing as CEO, Goenka explained that the decision was a personal one. “This will allow me to focus more time and bandwidth on the business and operations of the company, without being distracted by some of the other issues we have been dealing with," he said.
Eyes on AI
ZEEL is also cautiously exploring 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," Goenka remarked.
He highlighted ZEEL’s commitment to innovation, noting the company’s efforts to incorporate global best practices into its content strategy. “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," he explained.
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The company reaffirmed its dividend policy of distributing 25% of consolidated profits, as well as its focus on corporate social responsibility initiatives. “Our CSR focus includes women empowerment, rural development, and the preservation of arts and culture," Goenka said.
Concluding the AGM, Goenka expressed confidence in ZEEL’s strategic direction and its ability to overcome challenges. “Despite the 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.