Zee digital revenue more than doubles to Rs 630 crore in Q2

Zee Entertainment Enterprises Limited reported record digital revenue of Rs 630 crore in Q2 FY27, more than double a year earlier and 37% above the preceding quarter, as FIFA World Cup access, revised pricing and multilingual programming increased subscriptions. Management said 35% to 40% of FIFA-acquired subscribers remained on ZEE5 after the tournament.

How much did Zee's digital revenue grow in Q2 FY27?

Zee's digital revenue more than doubled year on year and rose 37% quarter on quarter to Rs 630 crore in Q2 FY27, its highest quarterly revenue for the digital vertical. Management linked the result to sports-led subscriber acquisition, a revised FIFA pricing strategy and releases across multiple languages on ZEE5.

ZEE5 released 34 shows and movies during the quarter, including nine original series. Management said the broader content offer and global sports drove engagement and time spent, while digital subscription revenue benefited from both higher average revenue per user, or ARPU, and subscriber growth.

Zee reported digital earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 41.6 crore during Q2 FY27. The following figures place the digital result alongside Zee's consolidated quarterly profitability.

The record revenue quarter came as Zee increased marketing expenditure on sports and new digital initiatives, including Bullet and KidZ, and revamped ZEE5's product experience. Management said the underlying digital unit economics remained intact and expected digital growth momentum to continue in the second half of FY27.

What did FIFA contribute to ZEE5 subscriber growth?

FIFA helped drive new digital subscriptions, but Zee did not disclose its precise revenue contribution or the number of subscribers acquired. Chief Executive Officer Punit Goenka said most FIFA revenue came through subscriptions on linear television and digital platforms because football has limited advertising airtime available for monetisation.

The tournament reached more than 40 crore people across Zee platforms despite match timings in India, with about 83% of FIFA viewing occurring live on ZEE5. Full-tournament reach was approximately 41% higher than in the previous FIFA World Cup, expanding the pool of users that Zee could convert into subscribers.

Management said 35% to 40% of subscribers who joined ZEE5 for FIFA were retained and continued using its language-based entertainment slate. Most FIFA purchases were quarterly packs rather than annual packs, according to Investor Relations head Ankit Arora, although annual plans represented a smaller portion of the mix.

Zee said it has also partnered with FIFA through 2034 and acquired Indian-market rights to Bundesliga and Serie A for the next five years. Management described those properties as part of a broader sports offer designed to retain new viewers after FIFA rather than as a separately quantified revenue stream.

The retention range is the disclosed measure of whether FIFA-led acquisition spending can continue to support subscriptions after the event. Arora said remaining pack revenue should accrue through the rest of FY27 and that retention could accelerate subscription-revenue growth from earlier normalised levels, without providing a numerical outlook.

How did Zee's subscriptions and advertising change?

Zee's total subscription revenue increased 30% year on year in Q2 FY27, driven by higher digital ARPU, digital subscriber growth and price increases in the linear business. This followed management's cited 16% subscription growth in the preceding quarter, although Zee did not separately quantify digital and linear contributions to the 30% increase.

Linear television subscription gains from sports are expected to be more visible in the next financial year, management said, because existing distribution agreements were already in place during Q2 FY27. Zee intends to use its sports portfolio, including Bundesliga and Serie A, in future negotiations with linear distribution partners.

Advertising revenue was flat year on year in Q2 FY27 but increased 20% sequentially. Management attributed the year-on-year pattern partly to the festive season moving into Q3, while FIFA, Sa Re Ga Ma Pa and fresh programme launches supported advertiser demand during the quarter.

Zee reported a 20% linear network share as of week 24, its highest share in seven years, before the measurement system paused. Management also said third-party data providers placed its content first for digital engagement across YouTube and Meta in Zee TV and key language markets, while monthly omni-reach exceeded 80 crore.

The contrast between flat annual advertising and 30% subscription growth shows where Q2's sports-led revenue benefit was concentrated. Goenka said most FIFA revenue sat in subscriptions, while advertising had less scope to benefit because live football carries limited commercial airtime.

What did digital investment do to Zee's profitability?

Zee's company EBITDA was Rs 70.8 crore in Q2 FY27, with a 3.2% margin, as operating costs increased 18% year on year. Management identified FIFA programming costs, expanded content output, higher hourly content, and advertising and publicity expenditure as the principal reasons for the increase.

Management said the EBITDA margin would have been in the mid- to high-single digits excluding higher spending on new initiatives. That is management's adjusted view rather than a reported margin, and Zee did not quantify individual costs for FIFA, Bullet, KidZ or other investment programmes.

Bullet is Zee's micro-drama initiative and includes Trinetra AI, which the company described as an end-to-end artificial-intelligence filmmaking and content-intelligence platform. Zee also redesigned ZEE5 for mobile and connected television, added AI-led discovery and enhanced personalisation to simplify content consumption.

At September 2026, Zee held cash and treasury investments of Rs 2,570 crore after receiving Rs 740 crore from the first tranche of preferential warrant proceeds from promoters. The balance included Rs 530 crore of bank balances, Rs 1,100 crore of fixed deposits and other investments, and Rs 940 crore of mutual fund investments.

Conclusion

Zee's Q2 FY27 digital result shows that FIFA expanded the scale of ZEE5, with digital revenue reaching Rs 630 crore, total subscription revenue increasing 30% year on year and management reporting 35% to 40% retention among FIFA-acquired users. The revenue expansion also came with higher programming and promotional expenditure, leaving company EBITDA margin at 3.2%.

The next disclosed test is the second half of FY27, when management expects digital momentum and subscription-pack accruals to continue. The key unresolved measures are the revenue contribution from FIFA and the number of acquired subscribers, while the next financial year is when management expects sports rights to have a fuller effect on linear subscription negotiations.