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Neelam Naik made post

Why did Zee Entertainment post such a huge loss in the Jun-20 quarter?

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Priyanka N answered.
2 weeks ago

Zee Entertainment Saturday a net loss of Rs.765.82 crore Mar-20 quarter and is yet to announce its results for the Jun-20 quarter. It may be recollected that Zee had logged a net profit of Rs.292.53 crore in the Mar-19 quarter. Even total revenues were down 4.06% at Rs.1992 crore in the Mar-20 quarter. Ad revenues were down 14.66% at Rs.1039 crore.

During the quarter, Zee made a provision of Rs.113.70 crore as impairment charges of the recoverable amount of goodwill allocated. One of the reasons for the loss was that the operational costs were up 48% at Rs.1305 crore for the Jun-20 quarter. This also included a one-time accelerated amortisation of inventory of Rs.260 crore.