Zee Entertainment Enterprises Ltd. share price target

ZEE delivered a robust performance in Q3, outperforming on the advertisement revenue front (+21.7% yoy) as well as in domestic subscription revenue (+29% yoy). The solid 27% yoy increase in EBITDA was largely in line with our ahead-of-consensus estimate. While maintaining our ahead-of-the-street estimates, we are incorporating 20%/15% ad growth for FY19/20E. With 31 originals, content launches on ZEE5 is behind management...

Entertainment Limited (ZEEL) to get its perspective on 1) value-maximisation by bringing-in a strategic investor, 2) progress in scaling-up of ZEE5, 3) outlook on its core business, 4) investments around movies and music business and 5) targeted margin band. Ambition to become leading global mediatech player: ZEEL's management highlighted that association with a large strategic partner would transform the company from a pure...

We maintain BUY with revised TP of Rs 487 We downgrade Zee Entertainment (Zees) target multiple from 30x to 25x Sep-20E EPS to factor in the divestment by promoters of upto 50% of their holding to a strategic partner by Apr19. Promoters even remain open for complete exit. Promoters hold 41.6% (59% pledged) amounting to ~$2.4bn at CMP. Potential exit by capable and efficient management and the resultant business disruption in the interim during transaction closure and management change is key concern, especially when industry is witnessing structural shifts.

Zee entertainment (Zee) informed the stock exchanges about the promoter group's intent to sell/divest up to 50% of their equity stake in the company to a strategic partner. Zee aspires to converge into a tech/media tech company to adapt to a changing global media landscape. Consequently, the company cited the need for superior tech support and geographical reach as the major reason to opt for such a proposed decision. The management also indicated they have received interest from few interested parties in the last six months (without divulging any...

ZEEL is India's #1 TV network for non-sports entertainment with a 20% share of all-India viewership in 2QFY19 (+160bps YoY). In the last 6years, Zee has delivered 18% CAGR in domestic ad revenues vs. 12% CAGR in TV ad spends. Zee has now embarked on a transformational journey with the launch of the Zee5 video platform; it is already #1 in original...

Zee Entertainment Enterprises Ltd Revenue increased by 11.5% to Rs. 1975.86 Cr in Q2FY19 when compared to the previous quarter. Also, it rose by 24.89% when compared with Q2FY18.

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...