Zee Entertainment Enterprises Ltd. share price target

Zee Entertainment delivered steady growth, supported by operational efficiency, leading to EBITDA performing well. The management remains optimistic about the prospects of the industry and the company despite macroeconomic headwinds. ZEEL is focused on strengthening content in regional languages and on digital monetization to drive the next growth cycle. Strategic investment in innovative formats, disciplined cost management and platform expansion are expected to...

Quarterly Update Q4FY25

We increase our EPS estimates by 6%/2% for FY26E/FY27E and upgrade our rating to BUY (earlier HOLD) with a TP of Rs137 as we revise our target multiple to 11x (earlier 10x) amid sustained improvement in operating performance since last 4 quarters. Despite a weak ad-environment, ZEEL reported better than expected performance with EBITDA margin of 13.1% (PLe 12.5%) led by cost optimization efforts and narrowing losses in ZEE5. In FY25, ZEEL's content and employee cost was down 10.4% and 9.0% respectively while operating loss in ZEE5 almost halved leading to 390 bps expansion in EBITDA margin. While...

Zee Entertainment’s (Zee) revenue was largely flat at INR22b (+10% QoQ, 5% beat) as the impact of weak domestic ad revenues (-27% YoY) was offset by a 3.2x YoY jump in other sales and services (movie releases).

Zee reported another quarter of subpar advertising growth, down another 8% YoY in Q3FY25. Ad revenue has now declined (YoY) in nine of the last ten quarters.

Zee Entertainment (Zee)’s revenue continued the declining trend with a 3% YoY dip (-1% QoQ; 5% miss) due to continued softness in domestic advertising revenue (-11% YoY) and lower revenue from other sales and services (-57% YoY).

Quarterly Update Q2FY25

Zee reported a mixed operating performance in Q2FY25. Advertising revenue growth remained underwhelming, declining by another 7.9% YoY.

Zee Entertainment’s (Zee) revenue continued the declining trend as 2QFY25 revenue fell 18% YoY (5% miss) on softer advertising revenue (-8% YoY, 1% miss) and lower revenue from other sales and services (-77% YoY on a high base.

Quarterly Update Q1FY25

In Q1FY25, ZEEL’s EBITDA margin expanded 306bps QoQ, beating our estimates. This was driven by cost optimisation efforts such as right-sizing its tech team for the OTT offering and reducing marketing costs.

Quarterly Update Q4FY24

In the aftermath of Zee’s merger breakoff with Sony, the Management and
Board of the company have embarked on a comprehensive plan to help regain
its lost glory, and announced multiple initiatives.

Quarterly Update Q3FY24

Company Update

Quarterly Update Q2FY24