Zee Entertainment Enterprises yesterday reported a quarterly loss, hurt by weak demand for advertisements, while expenses surged.

The broadcaster, according to a Reuters report, which is closing in on a merger with the India unit of Japan’s Sony Group, posted a consolidated net loss of Rs. 534.2 million for the first quarter ended June 30, against a profit of Rs. 1.07 billion a year earlier.

Total income rose 6.4 percent to Rs. 19.98 billion rupees, while expenses jumped nearly 17 percent, driven by higher operating, employee as well as marketing costs, the company said in a filing.

Indian broadcasters have suffered in recent quarters as companies cut spending on advertisements to save cash in a challenging macro-economic environment, while some moved to targeted advertisements in digital platforms for specific events like sports tournaments.

Zee flagged muted advertisement spending, mainly due to the Indian Premier League, a cricket league, during the first two months of the quarter, the Reuters report added.

Programming and technology costs increased due to higher content costs in movies, while marketing costs increased on the back of spending on new shows, movies and theatrical releases, Zee said.

“Green shoots emerged towards the quarter end, with early signs of advertisement spends starting to pick up, led by fast moving consumer goods companies,” Zee added.