Shares of Zee Entertainment Enterprise Ltd tanked 4% on 19 June after the chief financial officer resigned and gave personal reasons for his departure.

Mukund Galgali, the company’s head of strategic and commercial projects with over 17 years of experience working with Zee, will assume the interim role. 

The media company had taken several drastic steps and measures to cut costs and reduce its losses, including laying off 15% of its workforce and announcing its plans to restructure its leadership. 

Earlier In June, the Board of Directors of the company had approved plans to raise Rs 2,000 crore by issuing shares or other eligible securities. This fundraising plan comes after Sony pulled out of its huge $10 billion merger with Zee in January.

Over the years, Zee’s company has encountered difficulties. For example, in 2022–2023, advertising revenue dropped from over $600 million to $488 million in just five years. The cash reserves have also dropped by about 25% over this time.

However, the business turned a profit in the most recent quarter following a loss in the previous one. Due in part to lower expenses and increased demand for advertising, the company declared a profit of Rs 13.35 crore for the quarter that ended in March 2024 as opposed to a loss the year before.

The 11% YoY increase in domestic advertising revenue for the quarter was attributed to the macro advertising environment’s ongoing recovery and the FMCG customers’ increased spending.

At 11:26 am, the shares of Zee Entertainment were trading % lower at Rs 156.20 on NSE.