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regular-article-logo Sunday, 14 July 2024

Zee Entertainment plans to review business verticals to reduce losses, enhance performance levels

The company has formed a Monthly Management Mentorship, called 3M Program, which will guide and enable the management team to achieve key performance metrics, including a targeted 20 per cent EBITDA margin, said a statement from Zee Entertainment Enterprises (ZEEL)

Our Special Correspondent Mumbai Published 27.03.24, 10:27 AM
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Representational image File picture

Zee Entertainment has decided to conduct a “critical assessment” of some of its business verticals to reduce losses and enhance performance levels to achieve key performance metrics.

The company has formed a Monthly Management Mentorship, called 3M Program, which will guide and enable the management team to achieve key performance metrics, including a targeted 20 per cent EBITDA margin, said a statement from Zee Entertainment Enterprises (ZEEL).

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The 3M Program Special Committee has identified business verticals such as Margo Networks, which offers internet connectivity under the brand name ‘Sugarbox’, Teleplay (showing theatre play), and Zindagi, a general entertainment channel which broadcasts short-run programming, rather than ongoing, indefinite serials.

The list includes the movie app Weyyak and the English cluster of linear TV business.

“The Special Committee has advised that the identified business verticals will need to substantially reduce losses and enhance their performance levels,” it said.

To drive the 3M Program, the Zee board has formed a special committee comprising chairman R Gopalan and chairman of the audit committee U.P. Agarwal to review the business performance and provide the required directional guidance, it said.

The 3M Program Special Committee has also reviewed the music business of Zee and advised enhancing the monetisation avenues and subsequently increase its contribution to the company’s bottomline.

“It has also advised that the music business should focus on further optimising its costs, without losing its leadership position,” Zee said.

It has also conducted a detailed analysis of the Technology and Innovation Centre (TIC), which had incurred an expenditure of approximately Rs 600 crore last year.

The committee has advised to “reduce the expenditure at the TIC by 50 per cent, for the financial year 2024-25 and utilise its services to enhance the company’s content development, distribution and monetisation approach.

PTI

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