After delivering a strong performance in Q2 FY22, ZEEL MD and CEO Punit Goenka is confident that the growth momentum will continue if Covid-19 cases remain under control coupled with the ongoing vaccination drive and a gradual recovery in the economy.
“Overall, with the receding fear of an anticipated third wave, the green shoots in demand are clearly visible. The reopening of malls, theatres, and other economic and leisure activities coupled with the festive season will certainly see advertisement spends bouncing back in the subsequent quarters. We remain optimistic that if this trend continues, advertising should surpass the pre-covid levels and swing into healthy growth,” Goenka told analysts during the Q2 FY22 earnings conference call.
Goenka is optimistic that the improved business sentiment will provide a strong growth momentum for the sector, helping businesses bounce back to pre-covid levels by the end of this fiscal. He is also hopeful that a gradual recovery in theatre occupancy along with the strong slate of films lined up for release from Zee Studios will further serve as a positive factor in the subsequent quarters.
He also informed that the due diligence for the ZEEL-Sony Pictures Networks India (SPNI) deal has commenced and is expected to conclude within the stipulated timelines. “Further to the in-principle approval received from the board, the due diligence process has commenced and is in steady progress. We are confident that this process will be completed in the stipulated timelines or even before that post which we will move forward with the next steps as mandated by the law.”
The ZEEL head honcho asserted that the second quarter has been a recovery and revival phase for the company and the industry at large. He also noted that the second wave of the pandemic had a sudden surge in cases which served as a disruption to the growth momentum in the previous quarter, and some effects of that also spilled over into the first half of Q2 FY22.
“We are glad to know that the increase in vaccination drives, and reduction in cases, have led to the gradual reopening of business activities across the country. This has provided an impetus to consumers and to overall advertiser sentiments, resulting in green shoots for macroeconomic growth,” he stated.
Goenka also highlighted that the underlying trend seen in the content consumption during the lockdown remained at the fore-front, as viewership on TV and digital video streaming platforms continue to record new levels of growth. “As per our plans, we launched 30+ shows across our channels, leading to a gradual recovery in viewership in certain markets where we had lost our share. The launch of high-impact entertainment properties and engaging films across platforms has encouraged advertisers to increase their spends across genres,” he added.
ZEE5’s new strategy, Goenka said, continues to bear fruit as the company remains in growth mode for the business. He pointed out that noteworthy efforts have been taken to improve the digital platform growth across key aspects like content and user experience, which have led to higher user acquisition and monetisation.
“Globally, the platform continues to post steady positive growth across markets including the US where we launched in the previous quarter. We continue to invest in our core businesses to further …….