Zee Entertainment Enterprises Ltd. share price target

One-off write-off along with losing market leadership in key markets of Marathi and Bangla languages is a concern. While ad volumes improved QoQ owing to fresh content, ad realisation remains low. Full recovery in ad pricing ahead of festive season will be the key. Potential implementation of NTO 2.0 and impact ahead also remains unknown. We will turn buyers once ad recovery, improved cash flows & related parties mess eases. We maintain...

advertising revenues fell by 26.3% yoy. Subscription revenues grew by 10.6% yoy (2% on like to like basis). Ad revenues however more than doubled sequentially on a very low base. Subs revenues This impacted the EBITDA negatively. Margins as a result of which slipped down to 18.2%; while adjusted margins would have reached 23%. The company lost some viewership share in Q2 in...

Zee's Q2FY21 operating performance was in-line with revenue / EBITDA / APAT decline of 19/43/51% YoY. As company promised upon improvement in 5Gs (governance, granularity, growth, goodwill, and gusto) in Q1FY21, the sudden pop-up of failure of related party viz. Siti Networks to meets banks obligations was a key-negative surprise that wasn't called out by company. Zee provided for balance outstanding receivables from Siti of Rs 0.8bn (Rs 1.2bn provided earlier). It also provided Rs 0.97bn (Rs 2.07bn o/s)...

We upgrade our rating on the stock to BUY with a revised target price of Rs. 245 based on 15x FY22E Adj. EPS Topline falters on lower Ad spends, PAT sees a massive fall Q1FY21 revenues fell by 34.7% YoY to Rs. 1,312cr, impacted by significant decline in advertising revenues (-64.5% YoY to Rs. 421cr) as the business took a hit during the months of March and April owing to pandemic. On the contrary, subscription revenues grew by 5% YoY to Rs.744cr, aided by surge in online viewers. Revenues from other sales and services rose by 30.3% YoY to Rs. 147cr, backed by sale of movie rights to...

Guidance for working capital improvement, improved governance, better disclosures is a positive change. Nonetheless, near term concerns such as ad outlook as well as potential implementation of NTO 2 remain. We will turn buyers once ad recovery, improved cash flows & overdue recovery from related parties (walking the talk) is seen. We do, however, increase our target multiple from 9x FY22 P/E to 11x FY22 P/E with a revised target price...

Zee Entertainment Enterprises Ltd.s quarterly profit reported below estimates as ZEEL declines on reporting Q4 net loss of Rs 766 cr Consolidated net sales fell 3.4% to Rs 1,951.08 crore in Q4 March 2020 compared with Rs 2,019.27 crore in Q4 March 2019. Pre-tax loss was at Rs 803.03 crore in Q4 March 2020 as against Rs 441.91 crore in Q4 March 2019. Current tax dropped 53.4% to Rs 70.65 crore in Q4...

Q4FY20 consolidated revenue fell 3.4% YoY due to decline in revenues from Advertising (-14.7% YoY) and other sales and services (-27.8% YoY). However, the overall drop in revenue was partially offset by...

The Zee stock has been an underperformer recently, falling ~40% in the last four months due to cash-flows and balance-sheet concerns. We believe management's focus on cash-flow and cleaning the balance sheet is positive. At the ruling market price, the risk-reward is favourable. We maintain our Buy rating with new target price of `220. Revenues were largely inline, operating profit impacted due to one-offs. The sharp drop in ad revenue pulled down Zee's revenue 3.4% y/y to `19.51bn in Q4FY20. Domestic ad revenue slid 15.1% y/y. On the new tariff...

Ad in FY21 to be washout; stable subscription a solace Zee expects the mix of macroeconomic challenges, Covid-19 shock to impact sharply with about two-third of ad revenues loss in Q1, worst case ad revenue fall of 28-30% in FY21. It expects some recovery by Q2 end aided by festive season beginning and complete availability of new programming (currently operating at ~60-70% in Hindi, ~80-90% in regionals (ex-Tamil)). We bake in ~20% decline in ad revenues, followed by ~25% growth in FY22, on a depressed base. On the subscription front, given the impact of...