Zee Entertainment Enterprises Ltd. share price target

4QFY16 operational performance above estimates: ZEE's 4QFY16 EBITDA grew 53% YoY (17% above est.) to INR4.14b. The beat was led by higher-than-expected advertising and subscription revenue and lower sports losses. PAT grew 13% YoY to...

9 Industryleading adrevenue growth of ~29% was ahead of our and consensus estimates,drivenbyrobustadspendfromFMCGandecommercecompanies. 9 Subscription growth was ahead of our estimates, as Zee booked some catchup'...

Losses from sports business increased to Rs 150mn (higher than we estimated). Zee airedvariouscricketrelatedsportspropertiesinQ3. EBITDAmarginwashigherthanestimatedbecauseofhighersubscriptionrevenueand...

revenue, primarily driven by market share (because of increased programming hours) in regionalchannels.Adrevenueoutlookcontinuestoberobustdueto(1)higheradspendsby FMCGplayers,(2)recoveryininterestratesensitivesectors,and(3)continuedadspendby...

Zee Entertainment ltd (ZEL) has consistently outperformed the industry's ad growth owing to improvement in viewership market share driven by investments in content. Moreover, the company...

ZEELs 1QFY16 numbers were ahead of ours and consensus estimates on account of stronger than expected ad and subscription revenue growth. This led to APAT growth of 2%YoY/14%QoQ, beating estimates. ZEEL continues to deliver ahead of industry ad revenue growth while guiding for EBITDA margins within 50-100bps of FY15 levels (25.7%).

ZEELs 4QFY15 numbers were ahead of ours and consensus estimates on account of stronger than expected ad and subscription revenue growth. APAT, however, fell 9%YoY/24%QoQ on account of &TV;?s launch expenses.

Over the last three months, Zee Entertainment's (ZEE) stock price has underperformed the benchmark indices by 800bps primarily on concerns of margin pressure owing to the launch of new mainstream Hindi GEC channel (&TV;). We believe that the street is ignoring the long...

Since posting robust results in Q3FY15 (EBITDA growth of 22% YoY and APAT growth of 28%), ZEEL has corrected ~9% (underperforming the market). We feel that investors are unduly concerned on initial losses from ZEEL?s second mainstream Hindi GEC launch (&TV;) while ignoring the positives.