Zee Entertainment Enterprises Ltd. share price target

Optical fall in top-line due to high base: Revenues declined 22.6% YoY to Rs21,126mn (PLe Rs22,459mn) due to base effect (there was one-time syndication revenue of Rs5,512mn in 3QFY21). Excluding syndication income, revenues declined 3.0% YoY. Domestic ad-revenues declined 3.1% YoY to Rs12,061mn...

ZEE posted a weak 3Q earnings, with a network market share loss of 40bp, leading to a 3% YoY revenue decline, 5% below our estimate (adjusted for a one-off in 2QFY22). Adjusted EBITDA/PAT declined by...

Mr Punit Goenka will continue as MD & CEO of the merged entity but majority of the newly constituted board will be nominated by SPNI. ZEEL has signed a definitive agreement with Sony Pictures Network India (SPNI) to merge their linear networks, digital assets and program libraries. The agreement follows conclusion of exclusive negotiation period where in...

ZEE announced completion of the due diligence and final contours of the deal. SONY and ZEE's promoters will hold 51%/4% in the merged entity, while the rest will be held by the public. There will be a fresh capital infusion of INR113b (USD1.6b) by Sony, including the INR11b as non-compete fee to ZEE's promoters, which will be utilized to increase its stake to 4% from 2% in the merged entity. The merged entity is valued ~17x FY20 EV/EBITDA and 22x P/E. On a SoTP basis, the merged entity's linear business is estimated to be valued at 11-12x...

Zee is expected to fare much better in Q3FY22 on the back of opening of theatres, strong performances of new launches and expected new launches and the proposed merger. We reiterate our rating on the stock...

recovery in 2H 2) digital business has started gaining momentum (revenue up 17% QoQ) on the back of engaging content catalogue and 3) uncertainty surrounding boardroom decision risks is expected to reduce given the impending merger with SPNI (due diligence has started and is expected to be complete within stipulated timeline). Maintain BUY with a revised TP of Rs399 (Rs405 earlier) valuing the stock at 23x FY24 EPS of Rs17.3 (inclusive of merger synergy benefits). Near term pressure on margins and subscription revenues due to implementation of...

of pandemic. Ad revenues grew by a hefty 17.6% qoq and 20.7% yoy. Post a very subdued Q1 showed a good improvement in its numbers. EBITDA margins stepped up to 20.8% as ad revenues increased and programming costs as a % of sales moved down at 45.7% from 48.8% qoq and 48.4%...

The company's TV network viewership share improved 70 bps QoQ to 17.7%, albeit lower than Q2FY21 market share of 19% due to relatively soft performance in segments such as Marathi, Tamil and Hindi GEC...