Zee Entertainment Enterprises Ltd. share price target

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

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 %...