Zee Entertainment Enterprises Ltd. share price target

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....

Revenue decreased by 6.13% to Rs. 1725.31 Cr in Q4FY18 when compared to the previous quarter. Zee Entertainment Enterprises Ltd Q4FY18 results Comment

ICICI Securities Ltd | Retail Equity Research Revenues came in at | 1725.3 crore (vs. our estimate of | 1680.4 crore). The topline beat was led by superior domestic advertisement revenues, which grew 23.9% YoY, higher than our estimate of 20% YoY growth. Adjusting for sports (now exited) and RBNL channels, domestic ad revenues growth was 21.5% YoY. Domestic subscription revenues came in at | 452.1 crore (down 0.7% YoY), slightly ahead of our estimate of | 446.4 crore. Adjusted for sale of the sports business,...

Punjabi), increase in original programming hours, launch costs related with Zee5 launch led to some pressure on margins, which were about 310 bps/140 bps down qoq/yoy at 29.3%. In Q4, Zee gained market share on Hindi GEC front (#1 non sport player with a market share of...

Reiterate Neutral with TP of Rs 620 @ 32x FY20E EPS. Zee Entertainment (Zee) reported revenue of 21% YoY (like-to-like ~18.5%). This was led by healthy advertising revenue growth of 25% (like-to-like ~21.5%). Subscription revenue too grew by 17.4% YoY and 8.9% QoQ. EBITDA growth was muted at 8% YoY (like-to-like ~6%) owing to higher content costs and S&M; spends on digital platform ZEE5 launch.