Zee Entertainment’s Over The Top (OTT) platform ZEE5 suffered a quarter-on-quarter fall in revenue due to a pending teleco renewal, said Punit Goenka during the Q4 FY 21 earnings call last month. The pending Telco renewal since third quarter of last year is said to have been one of the reasons for the fall in ZEE5 revenues.
“The fall is largely on account of advertising which is cyclical in nature and also that there is one telco renewal that’s pending since third quarter of last year,” said Punit Goenka, MD & CEO, Zee Entertainment.
Zee Entertainment’s Bijal Shah further added, “last quarter was festive also so we had actually seen some bump- up which is not there and couple of telco renewals which are still in work in progress and were concluded only in 1Q.”
Zee recognises revenues from Telcos or the partners only as and when the deals are done. The pending Telco deals were under negotiation at the time of Q4 FY 21 earnings calls.
“Until and unless the deals are done with the Telcos or the partners, we don’t recognize revenues and we did not state that the deals will be closed in Q1. We are under negotiation, and as an when the deals closed, that will be announced,” said Punit Goenka, MD & CEO, Zee Entertainment.
Zee further added that the Telco partnership’s were only for premium content which is not really that large. The MAUs and DAUs are coming from ZEE5’s own organic growth as well.
“Until and unless the deals are done with the Telcos or the partners, we don’t recognize revenues and we did not state that the deals will be closed in Q1. We are under negotiation, and as when the deals closed, that will be announced,” added Bijal Shah.
