India’s Zee Entertainment Enterprises reported a more than 60 percent decline in second-quarter profit yesterday, as companies continued to cut advertising spending.

The company, which runs television channels such as Zee TV and ZeeCinema, said its consolidated net profit fell to Rs. 765 million ($8.71 million), for the quarter ended September 30, from Rs. 2.09 billion a year ago, according to a Reuters report.

Broadcasters, which rely heavily on advertisements, have been hit by a sharp pullback in ad spending, particularly from major consumer companies that are grappling with sluggish demand.

Zee’s revenue from advertising, which accounts for about 40 percent of the total, fell 11 percent from a year ago, the 12th decline in the last 13 quarters.

Core loss in Zee’s streaming service, ZEE5, narrowed more than 80 percent, while revenue rose 32 percent, helped by a slew of new content. ZEE5 is well on track to achieve its target of break-even, the company said.

Higher promotional spending on new content and movie syndication costs also weighed on Zee’s core profit margins, which fell to 7.4 percent from 16 percent a year ago. Overall revenue slipped 2 percent to Rs.19.9 billion.

Zee faces stiff competition from recently merged streaming major JioHotstar, owned by billionaire Mukesh Ambani’s Reliance Industries, which holds exclusive rights to stream sports such as cricket in India.

Meanwhile, the broadcaster’s 8-10 percent ad revenue growth goal for the year “looks a bit difficult” to achieve, but it is hopeful of a second-half recovery, chief financial officer Mukund Galgali said on a post-earnings call, another Reuters report added.

He said revenue growth and profitability are expected to be back‑ended, helped by investments in new content and by recent cuts in national sales tax.

Galgali said Zee’s 18–20 percent core profit margin outlook for the year also looks “difficult right now,” given higher programming spend and broader cost inflation.

Zee, which runs television channels such as ZeeTV and ZeeCinema, has been investing across its digital and linear businesses, launching new channels and adding content. Those costs have risen, but the company said it expects benefits in the medium term.