Zee Leisure reported a superb set of Q3FY21 numbers with progress in advert and subscription income. Revenues grew sharply by 33.2% YoY to Rs. 2729.4 crore owing to content material syndication deal of Rs. 551.2 crore. Home advert elevated 7.5% YoY to Rs. 1244.3 crore in the course of the festive quarter whereas on comparable foundation, home subscription grew 9.3% YoY pushed by each TV enterprise and Zee5. Reported EBITDA got here in at Rs. 715.7 crore, up 26.5% YoY with margins at 26.2% YoY. Consequently, reported PAT jumped 14.4% YoY Rs. 399.9 crore.
Valuation & Outlook
Whereas Zee has gained viewership in Hindi, Kerala and Bangla, it has misplaced management place in Marathi market. Decide up in Marathi market and total viewership is essential contemplating the current growth in channel portfolio. Potential implementation of NTO 2.0 and impression on subscription revenues forward additionally stays unknown. Zee’s proposed heavy funding in film enterprise (historically risky profitability in comparison with broadcasting) could impression working margins. We’d await finer particulars (probably by This autumn finish) earlier than turning constructive. We roll over valuations to FY23E and preserve HOLD score with a goal worth of Rs. 250/share (vs. earlier TP: Rs. 195). We worth the inventory at 13x FY23E P/E (vs. 11x FY22E P/E earlier) with enhance in goal a number of as a result of quicker advert restoration and earnings progress prospects on benign base, going forward.
For particulars, click on on the hyperlink under: https://www.icicidirect.com/mailimages/IDirect_ZeeEnt_Q3FY21.pdf
Shares of ZEE ENTERTAINMENT ENTERPRISES LTD. was final buying and selling in BSE at Rs.215.3 as in comparison with the earlier shut of Rs. 249.4. The full variety of shares traded in the course of the day was 3551302 in over 34154 trades.
The inventory hit an intraday excessive of Rs. 252.7 and intraday low of 212. The online turnover in the course of the day was Rs. 791190435.