Zee Entertainment reported a weak set of Q1 FY21 earnings. It was well Profits and operational performance was well below estimates. Profit for the quarter came in at a meagre `29 cr down 95% YoY. Revenues were in-line at `1312 cr down 35% YoY. The weak operating leverage hurt EBITDA which came in at `107.6 down 85% YoY and margins missed the mark significantly at 8.2% vs 36.2% YoY. 

The Ad revenue growth was hit due to cut in ad spends at 421 cr down 65% YoY and monetization was really weak in Apr-May leading to a decline in domestic advertising revenues. Subscription revenue at `744 cr up 5% and domestic subscription revenues grew by 6.2% YoY on a higher base, primarily led by ZEE5 subscription revenue. Among other highlights, ZEE5 has entered short video content space with the beta launch of HiPi.