Zee Entertainment Enterprises Ltd. share price target

Upgrade to BUY with TP of Rs 610 @ 32x Jun-20E EPS. Zee Entertainment (Zee) reported yet another strong quarter with 15% YoY revenue growth (and 17% EBITDA). This was led by advertising revenue, which rose 21.1% (domestic 22.3%) and subscription by 8.3% (domestic 12.2%). Zees network viewership share increased from 16.9% to 19.2% YoY led by strong performance across Hindi and esp. regional GEC channels.

ICICI Securities Ltd | Retail Equity Research Consolidated revenue came in at | 1772.3 crore, largely in line with our estimate of | 1780.1 crore. Domestic ad revenues grew 22.3% (vs. our expectation of 20% YoY growth) but international ad revenues stayed muted (2.1% YoY), lower than our expectation of 10% growth. This led to in line overall ad revenue growth of 18.5% YoY. On the subscription front, growth was disappointing at 8.3% YoY (vs. expectation of ~13% YoY), impacted by a decline in international subscription by 6.6% YoY...

We maintain our BUY rating on Zee Entertainment Enterprises Ltd. (ZEEL) with a revised target price of Rs651. We believe there is upside risk to our ad growth expectation of 16% for FY19E on the back of strong market share gains across languages and increasing ad spends by FMCG companies. Further we believe the full impact of the TRAI tariff order would be in FY20 and the management is confident to deliver low teens growth on the back of ARPU increase. New channel launches would help the company complete its bouquet of languages and help in increasing ad inventory. Management strategy to do deals for ZEE5 with telecos only on favourable terms is healthy for long term while we...

across the verticals of the Ad business. Hindi GEC continued to be the #1 non-sports channel with more than a percentage growth in the viewership market share at 19.2% yoy, growing 70 bps qoq. Dominance in the regional space, mainly in Marathi (>50 %...

Another good set of results; strong ad-growth outlook Zee reported yet another set of good results; 1Q consolidated revenues [+15.0% yoy] were marginally below our forecast, but EBITDA [+16.8%] came in c.2% higher, thanks to lower content and employee expenses. Normalised 1Q PAT was 10% lower, driven by higher depreciation, lower interest & other income and higher tax rate (37% vs. JMe 35.0%). Domestic ad revenue growth was strong at 22.3% yoy, and management shared a bullish outlook based on higher TV ad-spend growth than initial forecasts (made by Agencies) and continuing gains in viewership share for Zee led by Regional GECs. We believe a 20% ad...

17 July 2018 Zee reported strong 1QFY19 results, with ex-sports consol. revenue growing 17% YoY to INR17.7b (in-line) and EBITDA increasing 17% YoY to INR5.7b. The robust performance can be attributed to strong domestic ad revenue growth of 22% YoY, given viewership share improvement and healthy industry adspend. Domestic subscription revenue grew 12% YoY to INR4.3b. EBITDA margin expanded 50bp YoY to 31.9%, as strong revenue growth was partly offset by a 14%/21% YoY rise in content/SGA expenses. Adjusted for fair value change, PAT is up 15% YoY, implying an 8% miss on account of low other income, high depreciation and tax expenses. (1) Industry ad growth to exceed estimate of +12%. Domestic subscription revenue to grow in low- teens. (2) Zee5 is among top-5 entertainment platforms; target is to scale it up to top position in 18-24 months. Will increase original content from 14 to 34 shows by 2QFY19.

Emerging risks from JIO's aggression to reach 50mn homes through its fibre network could pose risk to traditional cable TV subscription revenues in longer term. Additionally, risk of higher than estimated costs on digital platform could keep valuation in check. Nevertheless, ZEEL is doing the right things to remain a dominant player with focus on emerging content preferences. Incremental disclosures on number of paid subscriber for ZEE5 would be key monitorable. Maintain ACCUMULATE with a revised TP of Rs571 (28x...

Zee Entertainment reported EBITDA ahead of estimates, while PAT missed estimates on higher than expected effective tax rate. While earnings of the company are in line, reported balance sheet shows greater capital intensity required than we had earlier expected. Viewership assets of the company are strong, and growing, and we expect the stock shall continue to draw premium valuations. We value Zee Entertainment at 31x PER FY20E, or Rs 623 (Rs.610 earlier). ACCUMULATE (REDUCE earlier) as Zee TV's ratings performance...

promotional cost for ZEE5. OPM during the quarter declined by around 140 BPS to 29.3%, ahead of our estimates of 27%. Low profitability was offset by higher-than-expected other income (up 60.4% y-o-y), leading to 6% y-o-y growth in adjusted net profit (excluding MTM...

Zee Entertainment Enterprises Ltd's revenue grew by 12.9% yoy to Rs 1,725 cr. Revenue growth was on account of strong growth of advertisement revenue owing to broad based recovery in advertising spends....