BENGALURU, March 26 (Reuters) - India's Zee

Entertainment should substantially reduce losses in its

businesses, including its English TV channels, and cut costs in

other areas to meet a key profit target, according to a

company-formed review panel, the broadcaster said Tuesday.

The move - coming on the heels of a failed $10 billion

merger with Sony India and the collapse of a $1.4

billion cricket broadcasting deal over a missed payment - is

aimed at helping the company hit key performance targets, Zee

said.

That includes a 20% earnings before interest, taxes,

depreciation, and amortisation (EBITDA) margin target proposed

by CEO Punit Goenka, Zee said. Its margin was 10.2% in the

December quarter.

Zee's business has struggled over the years, with

advertising revenue falling to $488 million for in 2022-23 from

around $600 million five years earlier. Cash reserves also

dropped about 25% in that period.

The committee - comprising company chairman R. Gopalan and

audit committee chairman Prakash Agarwal - has identified five

businesses, including its English television channels, the Hindi

channel 'Zindagi' and communication technology-maker Margo

Networks, where losses need to be substantially reduced, Zee

said.

Margo Networks lost 1.17 billion rupees in the year ended

March 31, 2023. Zee did not provide details on the performance

of the other businesses or respond to requests for comment.

The committee has also advised halving the costs at Zee's

technology and innovation centre in fiscal 2025, from the 6

billion rupees ($72 million) a year back, Zee said.

Zee, besides being locked in legal battles over the failed

Sony ( SONY ) and cricket deals, has to also contend with new competition

after Disney ( DIS ) and Reliance merged their Indian

media assets to create an $8.5 billion media behemoth.

($1 = 83.2670 Indian rupees)