Zee Entertainment has decided to have 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.
Zee Entertainment has decided to have 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, as proposed by its MD & CEO recently, said a statement from Zee Entertainment Enterprises Ltd (ZEEL).
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 also 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 its 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.
Besides, 3M Program Special Committee has also reviewed the music Business of Zee and advised enhancing the monetisation avenues and subsequently increase the vertical's contribution to the company's bottom line.
"It has also advised that the Music Business should focus on further optimising its costs, without losing its leadership position in the market," 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.
Though TIC has developed a substantial level of technology and tools, it needs to focus on return on investment.
The Committee has advised the management to "stay focused on its core expertise, ethos and DNA i.e. content" and to utilise the services of TIC to enhance its content development and distribution process.
"It has also advised that the management should leverage the TIC's Artificial Intelligence (AI) and Machine Learning (ML) tools to gain a deeper insight into the consumer profiles," it said.
Earlier this month, in an investor's conference call, Zee Chairman had said since 2020 ZEEL's performance has been impacted due to industry-wide macro slowdown, transitory issues, and management bandwidth constraints due to merger activities.
The board has also decided to closely monitor the business model and plan presented by the MD & CEO of the company, wherein he has provided the roadmap to improve the performance and efficiency of each of the businesses to achieve higher EBITDA (earnings before interest, taxes, depreciation, and amortization).
Zee had earlier announced a merger with Sony Pictures Network India, which could have created a $10.5 billion media entity in the country. However, it was called off by the Sony Group in January, and both sides are now mired in litigations and arbitrations.
Last month, ZEEL reported a decline of 2.36 per cent to Rs 2,073.36 crore in its consolidated total income during the third quarter ended in December 2023.