Zee Entertainment Enterprises Ltd. share price target

Zee Entertainment Enterprises Ltd. (ZEE) reported better than expected result in Q2FY19. The company delivered strong revenue growth (24.9% yoy) led by growth across segments and an improved operational performance (EBITDA up 37.6% yoy).

ahead our's, as well as the street's estimates on the back of good operating performance in its traditional business, despite significant investments (adverse impact of more than 300 bps) in contents especially on the digital platform. At 34.2%, EBITDA margin improved by 315 bps y-o-y in Q2FY2019, ahead of our estimates of 32.5%. Improved profitability along...

Consolidated revenue came in at | 1975.9 crore, better than our estimate of | 1856.8 crore. Domestic ad revenue grew 23.3% (vs. our expectation of 20% YoY growth) boosted by Zee5 revenues while overall ad revenue growth was 22.7% YoY (vs. our expectation of 18.1%). On the subscription front, domestic subscription growth came in at 25.9% YoY (vs. our expectation of 15% YoY) boosted by early deal closures and better monetisation of phase III markets. International subscription grew 1.9% YoY...

monetization. Reduction in operating costs despite launch of Zee5 in Q4 (from 37.7% in Q1 as a % of sales to 36.8% in Q2) has led to strong margin performance at 34.2% up 230 bps qoq and 320 bps yoy. Even the other expenses and advertising costs as a % of sales along with employee costs have reduced, thus leading to superior margin performance despite original programming hours...

Reiterate BUY with TP of Rs 585 @ 30x Sep-20E EPS. The recent correction offers a decent entry point. Zee Entertainment (Zee) reported yet another strong quarter beating estimates on revenue (+25% YoY) and EBITDA (+38%, margin 34.2%). PAT was in-line owing to higher tax-rate at 40.5%. Advertising revenue grew by a healthy 22.7% and subscription 21.3% (domestic 26%). Zees network viewership share improved further to 19.9% (vs. 16.9% in 2QFY18 and 19.2% in 1QFY19) led by strong performance across Hindi and regional GEC channels.

Strong 2Q core performance and OTT metrics; 2H growth to be softer Zee reported yet another strong set of results; 2QFY19 consolidated revenues (+25% yoy) were c.6% [INR 1.1bn] ahead of our forecast, led by c.10% [+540mn] beat on subscription (+21.3%), 2.4% [280mn] beat on ad (+22.7%) and c.19% [250mn] beat on Other revenues. 2Q EBITDA (+37.6%) was 13.5% [800mn] higher; EBITDA margin of 34.2% [235bps ahead] was the best-ever for Zee despite OTT losses. Normalised 2Q PAT was 6% higher; effective tax rate was 38.8% vs. our 35.0% forecast. Zee reported strong user and engagement metrics for Zee5; Sep-18 MAUs [monthly active users] of 41.3mn were up 190% from Apr18, while average time spent per user was 31 minutes per day. Zee5 climbed to the #2...

10 October 2018 Zees 2QFY19 revenue increased by a stellar 25% YoY to INR12.1b (3% beat). Consequently, EBITDA, too, grew strongly by 38% YoY, with the margin expanding by 320bp YoY despite continued investments in Zee5 (more than prior expectation of 200-300bp). Domestic ad/subscription growth was robust at 23%/26% YoY ad growth was driven by 12% industry growth, Zees market share gains, a low base (2QFY18 impacted by GST), and estimated 1-2% contribution of Zee5. Reported PAT declined 35% YoY to INR3.9b. (1) Expect mid-high-teens ad growth in 2HFY19. (2) Subscription growth to come in ahead of guidance of low-teens, led by better phase III monetization and catch-up revenue. margin is already at 33%, yet ZEE maintained 30%+ margin guidance given its high investment plans in Zee5 in 2H. (4) Zee5 to contribute at least 30% of revenue in next five years.

Zee Entertainment Enterprises Ltd. (ZEE) reported strong set of results for Q1FY19. The company reported revenue and PAT growth of 15% and 31.3%. The growth was led by strong growth in the advertising segment which grew by 19.6%. However, subscription revenue grew at a sluggish pace of 8.2%.

ZEEL is a Global Media and Entertainment conglomerate with a presence across television broadcasting, movies, music, live entertainment and digital businesses. Pioneer of television entertainment industry in India, ZEEL's well-known brands include Zee TV, &tv;, Zee Anmol, Zee Magic, Zee Cinema, &pictures;, Zee Action, Zee Classic, Zee Anmol Cinema,...

Revenue grew by 2.71% to Rs. 1772.03 Cr in Q1FY19 when compared to the previous quarter. Zee Entertainment Enterprises Ltd Q1FY19 results Comment