Media share price target

12.0% due to higher A&P spends (new logo was unveiled in June-25). Entertainment: While headwinds in Kiddopia and Nodwin businesses persist, consolidation of Curve Games, Freaks 4U and Fusebox is likely to support the...

12.5% in 4QFY25E, impacted by a higher contribution from the movie business, which typically commands lower margins. Entertainment: While headwinds in Kiddopia, Nodwin, Real Money Gaming &...

ZEEL market share in GEC for Q2FY24: Mixed bag as they sequentially gained share in 4 markets and lost share in other 4 markets. Notable callouts are Kannada (+199 bps) and Telugu ( -136 bps) against Q1FY24. Hindi still a work in progress.

Ad revenues: FMCG ad volume on linear TV grew 6% YoY in H1CY23 (link) and the second half is expected to be robust led by the festive season (link). We have built-in ad revenue recovery from Q2FY24. However, Q3FY24 could see some diversion of spends to sports given ICC ODI World Cup.

Managements of ZEEL and Sun TV sounded positive on ad spend recovery. According to them, FMCG media buyers are now more amenable to loosening purse strings.

Our channel checks indicate gradual improvement in ad spends. According to media reports, as inflation eases, marketers at leading FMCG companies are looking to spend more in FY24. In fact, our consumer team notes that HUL hiked its A&P spend by 47 bps YoY in Q1FY24.

We note that the muted ad spend environment continued to impact media companies in the quarter ended Jun’23. By our estimates, Q1FY24E ad revenue declined by 7% QoQ and 1.6% QoQ for Zee Entertainment (ZEEL) and Sun TV respectively.

BARC has released its viewership data for week-33 of CY22 (13th Aug to 19th Aug).