Zee Entertainment Enterprises Ltd. share price target

Robust ad revenue drives EBITDA: Ex-sports revenue grew 21% YoY to INR17.3b (5% beat), led by robust ad growth (+24% YoY to INR10.5b). Subscription revenue rose 14% YoY to INR5.5b. However, a 44% surge in SGA cost (launch of Z5) limited EBITDA growth to 8% YoY (INR5.1b, 17% beat). Consol. revenue/EBITDA grew 13%/8% YoY, while consol. margin shrunk 135bp YoY to 29.3%. Adj. PAT fell 42% YoY to INR2.3b (38% beat), led by higher taxes. Domestic ad revenue (excl. sports, RBNL and IWPL) jumped 22% YoY, led by healthy ad spend across categories. Domestic...

Zee Entertainment surprised positively, with 3% beat on revenue and 9% on EBITDA. The beat was driven by higher revenue as costs were in-line with estimates. PAT was impacted by higher tax outgo. Like-to-like domestic ad revenue grew at a healthy rate of 21.5% yoy. Domestic subscription revenue was 6% ahead of estimate while in FY18 growth of 12% was lower than expectation due to delayed monetisation in phase-III amid ongoing uncertainty around the implementation of TRAI's tariff order. spends, increased programming hours and market share gains. These factors are expected to aid Zee's outperformance on Ad growth vs. industry....

Consolidated sales grew by healthy 12.1% YoY in Q3FY18 led by robust 25.8% YoY growth in advertisement revenue. Domestic subscription growth (adjusted for sports business) stood at 7.5% YoY due...

ZEE5 likely to ride on regional content: Though the OTT sphere looks crowded with more than 40 OTT players (versus 20 in 2015) in India, the OTT segment in India is expected to report a CAGR of 25% over 2016-2020. On the subscribers' front, digital-only customers are expected to increase to 4 million in 2020 from 1 million-1.5 million subscribers now. It is...

Zee Entertainment (ZEE) has launched its digital platform ZEE5, with 8-9 original titles across genre and languages to start with. It targets to subsequently come up with six original titles every month. Viewers can subscribe to this service at a promotional offer price of INR99/month ??? at ~50% discount to Hotstar's pricing. We believe the incremental cost toward ZEE5 could be INR500-700m, implying an 80-100bp impact on the EBITDA margin. Despite this, we believe it can improve the EBITDA margin by 200bp over FY18-20, led by healthy operating leverage. We assign 35x P/E on Dec'19 EEPS of INR20 to arrive at a TP of INR705. Maintain Buy

We recently met with Mr. Punit Goenka, MD & CEO, ZEEL, and come back enthused and confident on Company's growth strategy. As ZEEL's core TV business goes from strength to strength, we believe, it is well placed to scale up its Digital offering under the refreshed Z5' platform.

Zee Entertainment Enterprises Ltd.'s net profit in the quarter ended December failed to meet market estimates as advertisers cut spending. Zee Entertainment Enterprises reported a 28 per cent rise in consolidated net at Rs 321.72 crore...

Zee Entertainment Enterprises Ltd Q3FY18 results comment Revenue rose by 16.18% to Rs. 1838.07 Cr in Q3FY18 when compared to the previous quarter

ICICI Securities Ltd | Retail Equity Research Revenues came in at | 1838.1 crore (vs. our estimate of | 1767.6 crore). Beat on the topline was led by advertisement revenues that on a lower base of demonetisation, witnessed 25.8% YoY growth to | 1202 crore and was higher than our estimate of 18% YoY growth. Adjusting for sports (now exited) and RBNL channels (acquired recently), domestic ad revenue growth was 25.7% YoY. Subscription revenues came in at | 501.7 crore, down 15.5% YoY mainly due to...

Zee's domestic subscription revenues in the quarter witnessed a fall of 15.5% yoy. The decline was due to delay in finalizing and renegotiation of contracts with distributors. As these issues get resolved in the coming quarters, this business is expected to get back into the groove. Going forward the hopes of monetization of Phase III and implementation of Phase IV of digitization are strong. With continued expansion of DTH, we see a stable growth in subscription revenues in FY19E and a higher growth in FY20E. Implementation of new tariff...