DOCSLIB.ORG

Zee Entertainment

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Zee Entertainment 17 January 2018 3QFY18 Results Update | Sector: Media Zee Entertainment BSE SENSEX S&P CNX 35,082 10,789 CMP: INR593 TP: INR705 (+19%) Buy Bloomberg Z IN Better growth to drive valuation Equity Shares (m) 960.4 Ex-sports revenue rebounds with 23% growth, EBITDA up 17%: Ex-sports M.Cap.(INRb)/(USDb) 569.5/8.8 52-Week Range (INR) 619/465 revenue rebounded (+23% YoY) to INR18.4b on a low base (3QFY17 was 1, 6, 12 Rel. Per (%) -1/0/-5 impacted by demonetization). Consolidated revenue grew 12% YoY (7.6% beat). Avg Val, INRm 1087 EBITDA expanded 15% YoY to INR5.9b (8% beat). Ex-sports EBITDA increased Free float (%) 56.9 17% YoY – lower than revenue growth due to higher SG&A related to a) an Financials & Valuations (INR b) increase in original number of hours of content, b) three movie releases and c) Y/E MARCH 2018E 2019E 2020E INR400m of one-off expense related to Zee’s 25-year branding. EBITDA margin Sales 66.1 76.5 87.7 improved 90bp YoY to 32.3% (in-line). PAT rose 29% YoY to INR3.2b. Investment EBITDA 21.0 25.3 29.7 in secured NCD of INR1.67b is overdue, while Zee is pursuing recovery options. NP 13.1 16.9 20.2 Ad revenue propels growth; subscription revenue delayed: Domestic ad EPS (Rs) 13.7 17.6 21.0 EPS Growth (%) 2.1 28.7 19.3 revenue jumped 26% YoY (adj. for sale of sports business and acquisition of BV/Share (Rs) 80.9 94.9 112.2 RBL), with healthy ad spends across categories. Ex-sports domestic subscription P/E (x) 43.4 33.7 28.3 revenue grew at a muted 7.5% due to longer time taken for contract renewal P/BV (x) 7.3 6.3 5.3 negotiations on account of the TRAI’s tariff order. EV/EBITDA (x) 26.5 21.8 18.1 Upbeat ad/subscription outlook: Improving ad market outlook with broad- EV/Sales (x) 8.4 7.2 6.1 RoE (%) 18.2 20.0 20.3 based ad spends across sectors and healthy viewership should lead to steady RoCE (%) 16.4 18.7 20.3 15% ad revenue growth in 4QFY18 and 16% CAGR over FY18-19E. Domestic subscription revenue (ex-sports) led by closure of content contracts is expected Estimate change to grow 16% in 4QFY18 and at 14% CAGR over FY18-19E. TP change Maintain Buy with a revised TP of INR705: We have revised up FY19-20E PAT Rating change by 2% on better-than-expected results. Subsequently, our TP is revised up to INR705 (v/s INR680 earlier) on 35x P/E on Dec’19 EPS. Premium valuation is justified by steady 24% EPS CAGR over FY18-20E and improving RoIC above 30%. Our high EPS growth estimate is driven by 200bp EBITDA margin expansion over FY18-20E to 33.9%, above the company’s guidance of 30%+. We believe steady revenue growth (ex-sports) should offer buffer for higher operating cost toward the upcoming re-launch of Zee’s digital platform – Z5. Consolidated - Quarterly Earning Model (INR m) Y/E March FY17 FY18 v/s est FY17 FY18E 3QFY18E 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE (%) Total Revenue from Operations 15,717 16,954 16,391 15,280 15,402 15,821 18,381 16,462 64,342 66,065 17,085 7.6 YoY Change (%) 18.5 23.0 3.4 0.4 -2.0 -6.7 12.1 7.7 10.7 2.7 0.8 Total Expenditure 11,185 12,062 11,233 10,593 10,559 10,909 12,437 11,118 45,073 45,023 11,593 7.3 EBITDA 4,532 4,892 5,158 4,688 4,844 4,912 5,944 5,343 19,269 21,042 5,492 8.2 Margins (%) 28.8 28.9 31.5 30.7 31.4 31.0 32.3 32.5 29.9 31.9 32.1 19bp Depreciation 251 336 249 316 311 411 505 453 1,152 1,679 376 34.1 Interest 75 86 90 1,122 147 3 24 1,089 1,372 1,262 556 -95.8 Other Income 734 432 525 549 1,011 2,031 480 123 2,240 3,646 302 59.2 Fair Value through P&L -1,132 -829 -714 470 -532 -148 -419 0 -2,205 -1,099 0 gain/(loss) PBT before EO expense 3,808 4,074 4,630 4,269 4,864 6,381 5,477 3,925 16,780 20,647 4,862 12.7 Extra-Ord expense 0 0 0 -12,234 0 -1,346 0 0 -12,234 -1,346 0 PBT 3,808 4,074 4,630 16,504 4,864 7,727 5,477 3,925 29,014 21,993 4,862 12.7 Tax 1,626 1,634 2,081 1,464 2,344 1,832 2,260 1,592 6,805 8,028 1,653 36.7 Rate (%) 42.7 40.1 44.9 8.9 48.2 23.7 41.3 40.6 23.5 36.5 34.0 MI & P/L of Asso. Cos. 13 56 41 -116 4 -16 -4 0 -7 -16 0 Reported PAT 2,169 2,383 2,508 15,156 2,516 5,912 3,222 2,333 22,216 13,982 3,209 0.4 Adj PAT 2,169 2,383 2,508 4,006 2,516 4,885 3,222 2,333 12,851 13,127 3,209 0.4 YoY Change (%) -9.0 -9.9 -6.1 180.1 16.0 104.9 28.5 -41.8 52.3 2.1 34.6 Aliasgar Shakir – Research analyst ([email protected]); +91 22 6129 1565 Hafeez Patel – Research analyst ([email protected]); +91 22 6129 1568 Investors are advised to refer through important disclosures made at the last page of the Research Report. Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital. Zee Entertainment Valuation and view Ad revenue growth: Our FY18-21E ad revenue growth for Zee remains at 16.5%. This is marginally above FICCI-KPMG’s TV ad industry growth estimates of 15% over the similar period. Zee’s wide channel bouquet and focus to increase target market through entry in new genres should support higher growth. Subscription revenue growth: Subscription revenue growth in the next three years should remain healthy, as digitization is expected to help garner better subscription revenue driven by ARPUs. EBITDA margin: We have built in steady EBITDA margin improvement of 270bp over FY18-21E on the back of sale of loss-making sports business and operating leverage. Management has guided north of 30% EBITDA margin; however, we believe the company has enough margin headroom to support fresh investments (even at 200-300bp higher margin from the current 31-32% EBITDA margin). Subsequently, the company has the potential to drive secular 22% EPS growth over FY18-21E. Exhibit 1: ZEEL – Business Construct Particulars FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY21E Advertisement revenue growth (%) 24.0 21.2 11.8 26.5 9.2 12.3 17.3 15.5 15.5 Subscription revenue growth -Domestic revenue growth (%) 26.3 13.2 8.0 14.5 11.8 -10.0 16.5 16.5 16.5 -International revenue growth (%) 14.0 5.5 -23.5 15.4 3.0 -12.5 4.0 2.0 2.0 Total Subscription revenue growth (%) 22.6 11.0 -0.4 14.7 10.0 -10.5 14.1 14.0 14.3 Total Revenue growth (%) 21.7 19.5 10.4 19.0 10.7 2.7 15.8 14.7 14.8 EBITDA margin (%) 25.8 27.2 25.7 26.0 29.9 31.9 33.0 33.9 34.6 EPS growth (%) 22.8 21.9 -3.1 -1.6 52.5 2.1 28.7 19.3 19.3 Source: MOSL, Company What it means for the target price 3-year view: Given the steady 22% EPS growth estimate over FY18-21, healthy RoIC of 30% and strong FCF generation, we maintain 35x P/E (3-year average). This values the company at INR 876, offering 50% upside. 1-year view: We have revised up FY19-20 PAT by 2% on better-than-expected results. Subsequently, our TP is revised up to INR705 (v/s INR680 earlier) on 35x (3-year average) P/E on Dec’19 EPS. Premium valuation is justified on Zee’s steady 24% EPS CAGR over FY18-20E and improving RoIC above 30%. Our high EPS growth estimate is driven by 200bp EBITDA margin expansion over FY18-20E reaching 33.9%, above the company’s guidance of 30%+. 17 January 2018 2 Zee Entertainment Exhibit 2: ZEEL: 1-year forward P/E band P/E (x) Avg (x) Max (x) Min (x) 53.0 43.3 41.0 35.0 29.0 25.9 17.0 5.0 10.0 Jul-10 Jul-15 Jan-08 Jan-13 Jan-18 Oct-11 Oct-16 Apr-09 Apr-14 Source: MOSL, Bloomberg Key Triggers Sustainable ad revenue growth led by steady industry growth and healthy viewership market share. Digitization led healthy subscription revenues growth over the next 2-3 years. Key risk factors Intense competition across genres leading to lower viewership and subsequently impacting yields. Heavy investment in the digital – OTT application, movie production and aggressive ramp-up in movie library.
Load more

Recommended publications
  • Schools, Provides Serviceseducational
    IMPROVING HUMAN CAPITAL From conception to career, we’ll nurture the unique potential in each individual, thereby improving the Human Capital of this world. 1 Disclaimer This presentation contains confidential information regarding Zee Learn Limited (ZLL, the Company) and it’s subsidiaries and affiliates (together with the Company, the Group) and is being furnished for limited use and for information purposes only. This Presentation and the information contained herein does not constitute or form part of an offer or invitation, or a solicitation of any offer, or recommendation for the purchase or acquisition of securities or any interest in the Company (including without limitation, to the Indian public or any section thereof). Neither the information contained in this Presentation nor any further information made available in connection with the Company or the Group will form the basis of any contract nor should they be relied upon in relation to any contract or commitment. This Presentation shall not be taken as any form of commitment on the part of the Company. Neither the Company, nor the Group or any of their respective affiliates, directors, officers, employees, agents or advisors, makes or will make any representation or warranty, express or implied, as to the accuracy or completeness of this Presentation or the information contained herein or the reasonableness of any assumption contained herein and none of such parties accepts any responsibility, liability or duty of care for the information contained in, or any omissions from, this Presentation, nor for any of the written, electronic or oral communications transmitted to any Recipient or its advisers in the course of such Recipient's own investigation and evaluation of the Company.
    [Show full text]
  • Airtel Digital Tv Recharge Offers in Mumbai
    Airtel Digital Tv Recharge Offers In Mumbai usuallyBoris corrugate noddled hissome tragopans cane or beguilingcounterplots instrumentally, fitly. Goober but dilated patronized fresh. Karl never paid so representatively. Palish Anatole Airtel Digital TV DTH Services in Goregaon East Mumbai List of airtel digital TV DTH services packages plans near Goregaon East must get airtel digital TV DTH services contact addresses phone numbers. Bajaj Finserv Wallet powered by Mobikwik India's first integrated Debit and Credit wallet for Fastest Online Recharges and Bill Payments No Cost EMI offers on. What axis the best TV packages? Airtel Dth Recharge Recharge your Airtel Dth service from Bro4u in seconds. Click on your entertainment channel plans? Airtel DTH Mumbai Toll-Free Customer a Number- 022 4444-00. Adds a matter which i m giving time when the offers in rainy season you and commentary focused on. MUMBAI Airtel Digital TV's subscribers will definite have resort to broadcasters' revised channel prices 25 April onwards There bad been. Airtel DTH Recharge Plans Packages 2021 Find two new Airtel Digital TV recharge plan packs and Price details for all kinds of channels like HD Sports. Airtel Digital TV Recharge Plans Gizbot. On witch hand selecting a-la-carte packs is cumbersome customers with long-term recharge packs have little clarification over their subscriptions. Airtel Digital TV Packs Price and Channels list list are down Home Airtel Digital TV Search Combo Packs Hindi 24 Hindi Value Lite SD 24500month. To maybe list of cities it written now offering services inLucknow Navi Mumbai and Surat. Browse best prepaid recharge plans for your Airtel number.
    [Show full text]
  • A New Vision Is Blooming
    A NEW VISION IS BLOOMING ZEE 4.0 - ANNUAL REPORT 2020-21 Zee Entertainment Enterprises Limited Transformation stems from the natural evolution of every living being. Inside each of us lies a distinctive desire to do something more than the norm, out of the ordinary. This nature of existence flows from people to businesses, leading them from old path to new, creating opportunities for themselves and for the rest of the world. Media and Entertainment landscape is not untouched by this phenomenon. From consumer FINANCIAL behaviour to consumer experiences, the industry has evolved in all shapes and forms over STATEMENTS the last few decades. Today, we are seeing a paradigm shift in the consumption and delivery 03 of entertainment. In this new realm, the alchemy of the consumer experience is one that blends content creation, delivery, and monetization in a seamless manner. This hyper- STANDALONE competitive, digitally accelerated environment demands a unique strategic vision. We at ZEE INDEX Independent Auditor’s Report 107 are preparing to step into this future with a sharper and synergised version, transforming into ZEE 4.0 - a future-ready organisation to gain competitive advantage. ZEE 4.0 is Balance Sheet 115 designed around enhanced customer centricity with levers for capitalizing on Statement of Profit and Loss 116 immense growth opportunities and driving higher profitability. COMPANY Statement of Cash Flow 117 OVERVIEW The 5G pillars - Governance, Granularity, Growth, Goodwill and Gusto, form 01 Statement of Changes in Equity 119 the cornerstone of ZEE 4.0, sharpening our abilities to capture the emerging Notes 121 opportunities across markets, to transform ZEE into South Asia’s leading Media & Key Performance Indicators 04 STATUTORY Entertainment Company.
    [Show full text]
  • CORPORATE ZEE 30 06 06.Qxp 03/806 11:26 AM Page 36
    CORPORATE ZEE 30 06 06.qxp 03/806 11:26 AM Page 36 Corporate The zest in Zee Through a series of changes, Zee Telefilms has moved rapidly ahead. Ryan Rodrigues reports few years ago the average Telefilms, softer changes were introduced. benefit from the increased management viewer in India had written off The traditional rectangular Zee logo was focus on respective businesses," it says. Zee Telefilms as a potential given a contemporary look, with bends and Next was a Merrill Lynch report. "Zee TV A No 1. A media and entertain- curves to target a younger audience. has finally overtaken Star Plus in the 9-10 ment company, it had been a market leader Headquarters shifted from the suburbs to a pm band in the first week of June with its in the Indian television space for long. But swanky building in the centre of the city. shows beating Star Plus after six years," it stiff competition had started to take its toll. Today behind the glass walls of this says. "Developments reinforce our view At its offices in Mumbai, senior managers two-storey structure, executives buzz that improving content and platforms will would walk in - and then they walked out. around with purpose in their feet. be key triggers to sustain Zee's premium One successful show on rival Star TV, fol- The verdict first came from TAM valuations." lowed by a serial onslaught, had whittled Ratings in June. The industry's audience Stock analysts' now stick their necks down homegrown Zee from prime position measurement system lists 10 Zee shows in out for Zee; the company has become a to No 3.
    [Show full text]
  • Zeel's Mission Goal
    ANNUAL REPORT 2016-17 A TO ZEE OF CONTENT LEADERSHIP CORPORATE OVERVIEW STATUTORY REPORTS 01 02 ZEEL At A Glance 02 46 Management Discussion And Analysis 04 Events And Milestones 66 Notice 06 Message From The Chairman 70 Directors’ Report 08 Key Performance Indicators 76 Annexures to Directors’ Report 10 Message From The MD & CEO 88 Secretarial Audit Report 12 All You Can See 90 Report on Corporate Governance 14 We Speak Your Language 104 Business Responsibility Report 16 We Are Where You Want To Be 109 Certification of Financial Statements 18 All The World Is A Stage 20 More. Much More Than TV. 22 Business Overview FINANCIAL STATEMENTS 30 Strategy For Sustainable Growth 03 STANDALONE 32 Q&A With Amit Goenka - CEO (International Business) 110 Independent Auditor’s Report 34 Q&A With Chief Finance and Strategy Officer 114 Balance Sheet 36 Board Of Directors 115 Statement of Profit and Loss 38 Leading With People 116 Statement of Changes in Equity 40 Leading With Thought. Growing Through Engagement 117 Statement of Cash Flow 42 Corporate Social Responsibility 119 Notes 43 Caring For The Environment 162 Last Five Years Financial Highlights 44 Corporate Information 163 Performance Ratios - An Analysis CONSOLIDATED 164 Independent Auditor’s Report 168 Balance Sheet 169 Statement of Profit and Loss 170 Statement of Changes in Equity 171 Statement of Cash Flow 173 Notes ATTENDANCE SLIP & ROUTE MAP FOR VENUE OF AGM PROXY FORM ON THE COVER Forward-looking statement In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our A TO ZEE OF CONTENT prospects and take investment decisions.
    [Show full text]
  • ZEE ENTERTAINMENT ENTERPRISES Strong Q1 Reinforces Our Top Pick Stance
    RESULT UPDATE ZEE ENTERTAINMENT ENTERPRISES Strong Q1 reinforces our top pick stance India Equity Research| Media COMPANYNAME Zee Entertainment Enterprises’ (ZEE) Q1FY19 revenue and EBITDA came EDELWEISS 4D RATINGS in line, while PAT surpassed estimate. Key positives: (i) 22.3% YoY growth Absolute Rating BUY in domestic advertising. With innovations likely to be at a record high in Rating Relative to Sector Outperform FY19 (HUL’s ad spends jumped 27% YoY in Q1FY19), we expect ad Risk Rating Relative to Sector Medium expenses of FMCG players to continue to be high; and (ii) 12.3% YoY spurt Sector Relative to Market Overweight in domestic subscription revenue. The 21.2% YoY rise in selling & admin cost incurred for promotion of newly launched ZEE5 was key negative. Broad-based ad growth across categories, higher ratings for Zee TV and MARKET DATA (R: ZEE.BO, B: Z IN) CMP : INR 515 sustained focus on regional markets (likely GEC launch in Kerala) brighten Target Price : INR 700 prospects. Response to ZEE5 (launched in February) and implementation of TRAI’s tariff order are key monitorables. Maintain ‘BUY’. 52-week range (INR) : 619 / 477 Share in issue (mn) : 960.5 M cap (INR bn/USD mn) : 496 / 7,252 Domestic ads extend robust run; digital initiatives yielding results Avg. Daily Vol.BSE/NSE(‘000) : 2,247.3 ZEE sustained robust domestic LTL ad growth (up 22.3% YoY; our estimate 18.0%) driven by higher ad spends across categories and increase in the network viewership SHARE HOLDING PATTERN (%) share. The company had an all-India viewership share of 19.2%.
    [Show full text]
  • Indepth Analysis of the D2H Industry on Behalf of Videocon and Handling
    WELINGKAR INSTITUTE OF MANAGEMENT RESEARCH & DEVELOPMENT SUMMER PROJECT ON Indepth analysis of the D2H industry on behalf of Videocon and handling Brand promotions and events for Planet M (Research on “India has 6 major DTH players whereas the world over every country has approx 2. Can the Indian market absorb all?” done to develop the Videocon brand name Handling Planet M brand promotions and a major event called “Mirchi Create With Agnee” in collaboration with Radio Mirchi) BY ESHA SYLVIA BAILEY PGDM 2009 – 11 Marketing TRIMESTER IV ROLL NO 9 1 Table of Contents Industry Overview ............................................................................................ 3 History: .................................................................................................... 3 GLOBAL SCENARIO ....................................................................................... 5 Current Indian Scenario:................................................................................... 6 VIDEOCON INDUSTRIES LTD. ........................................................................... 9 Objectives of the project: .................................................................................... 13 EXECUTIVE SUMMARY ................................................................................. 14 Porter‘s Analysis of the DTH industry: ..................................................................... 16 SWOT Analysis ............................................................................................. 18 Concept
    [Show full text]
  • SITI Cable Network Limited
    SITI Cable Network Limited Instrument Amount (Rs. crore) Rating Action Long term loan 125.0 Upgraded to [ICRA]A- (stable) from [ICRA]BBB+ (stable) Long Term - Fund Based/ 25.0 Upgraded to [ICRA]A- (stable) from Cash Credit [ICRA]BBB+ (stable) Long term loan* 50.0 [ICRA]AA(SO) (Stable) outstanding Source: ICRA research; Note*: Backed by Zee Entertainment Enterprises Limited’s debt service reserve account (DSRA) support ICRA has upgraded the long-term rating on the Rs. 125.00 crore1, term loans and the Rs. 25.00 crore, long- term, fund-based bank facilities of SITI Cable Network Limited (SCNL; the company) to [ICRA]A- (pronounced ICRA A minus) from [ICRA]BBB+ (pronounced ICRA triple B plus)2. The outlook on the rating is 'stable'. ICRA also has a rating of [ICRA]AA(SO) [pronounced ICRA double A (Structured Obligation)] outstanding on the Rs. 50.00 crore, term loan facility of SCNL. The outlook on the rating is ‘stable’. The letters SO in parenthesis suffixed to a rating symbol stand for Structured Obligation. An SO rating is specific to the rated issue, its terms, and its structure. SO ratings do not represent ICRA’s opinion on the general credit quality of the issuers concerned. The rating outstanding on the Rs. 50 crore term loan facility is based on the strength of the unconditional and irrevocable Debt Service Reserve Account (DSRA) guarantee extended by Zee Entertainment Enterprises Limited (ZEEL; Guarantor) to the lender of this facility. As per the terms of this guarantee, the Guarantor has to provide rolling DSRA support (to the extent of debt obligations falling due over the next quarter) throughout the tenure of the facility.
    [Show full text]
  • Zee Entertainment Enterprises Limited Show’S On; New Season Begins
    Zee Entertainment Enterprises Limited Show’s on; new season begins Powered by the Sharekhan 3R Research Philosophy Media & Entertainment Sharekhan code: ZEEL Company Update Update Stock 3R MATRIX + = - Summary We re-initiate coverage on Zee Entertainment Enterprises Limited (ZEEL) with a Right Sector (RS) ü Buy rating with a PT of Rs. 275, considering better ad growth outlook and reducing balance sheet concerns Right Quality (RQ) ü Q3FY21 numbers were strong; expect ZEEL to clock revenue/net profit growth of 18%/22% over FY21-FY23E. Right Valuation (RV) ü Management is focusing on rebuilding investor confidence by 1) improving disclosures, 2) introducing polices and 3) strengthening board composition. + Positive = Neutral - Negative We believe ZEE5 is one of the leading digital platforms, centered on regional content and would continue to leverage its reach further led by hyperlocal content. We re-initiate coverage on Zee Entertainment Enterprises Limited (ZEEL) with a Buy Reco/View rating considering strong results for Q3FY2021, improving outlook for advertisement revenue, sharp recovery of viewership share across genres, marginally lower inventories Reco: Buy q-o-q, increase in net cash position for last three consecutive quarters, receivables CMP: Rs. 215 from Dish TV as per schedule, recovery of offshore investments and potential to make strong inroads into tier-2-3 markets though its digital platform ZEE5. Considering its Price Target: Rs. 275 patchy past (including both internal and external factors), the management is focused on rebuilding investor confidence since the beginning of FY2021 with 1) improved á Upgrade Maintain â Downgrade disclosures (quarterly balance sheet including break-up of a content inventory and content advances and key financials for ZEE5) and 2) introducing polices pertaining to treasury management, investments and related party dealings.
    [Show full text]
  • 2008 Annual Report
    2008 ANNUAL REPORT Table of Contents Letter from the President & CEO ......................................................................................................................5 About The Paley Center for Media ................................................................................................................... 7 Board Lists Board of Trustees ........................................................................................................................................8 Los Angeles Board of Governors ................................................................................................................ 10 Media Council Board of Governors ..............................................................................................................12 Public Programming Spring Subscription Series ..........................................................................................................................14 Fall Subscription Series ..............................................................................................................................16 Fall TV Preview Parties ...............................................................................................................................19 Robert M. Batscha University Seminar Series ............................................................................................20 William S. Paley Television Festival ............................................................................................................20
    [Show full text]
  • Earnings Release for the Quarter Ended June 30, 2016
    EARNINGS RELEASE FOR THE QUARTER ENDED JUNE 30, 2016 Advertising Revenues of Rs 9,120 Mn, Up 19.2% YoY Subscription Revenues of Rs 5,282 Mn, Up 14.2% YoY Consolidated Operating Revenues of Rs 15,716 Mn, Up 18.5% YoY EBITDA of Rs 4,532 Mn; EBITDA Margin of 28.8% Profit after Tax of Rs 2,181 Mn; PAT Margin of 13.9% Q1 HIGHLIGHTS Advertising revenues for the quarter were Rs 9,120 million, recording a growth of 19.2% over Q1 FY16. During the quarter, domestic advertising revenues stood at Rs 8,415 million while international advertising revenues stood at Rs 705 million. Subscription revenues were Rs 5,282 million for the quarter ended June 30, 2016 recording a growth of 14.2% over Q1 FY16. During the quarter, domestic subscription revenues stood at Rs 4,179 million while international subscription revenues stood at Rs 1,103 million. Consolidated operating revenues for the quarter stood at Rs 15,716 million, recording a growth of 18.5% as compared to the corresponding quarter last fiscal. Operating profit (EBITDA) for the quarter stood at Rs 4,532 million. EBITDA margin stood at 28.8% Profit after Tax (PAT) for the quarter ended June 30, 2016 was Rs 2,181 million. PAT Margin stood at 13.9%. The company has adopted Ind-AS reporting methodology for reporting its financials commencing Q1 FY2017. Like-to-like financials for previous quarters (Q1 FY2016) have been restated accordingly. Zee Entertainment Enterprises Limited 18th Floor, A - Wing, Marathon Futurex, N. M.
    [Show full text]
  • Zee Entertainment
    India Equity Research Media June 14, 2021 ZEE ENTERTAINMENT COMPANY UPDATE KEY DATA Stronger signals on growth, compliance Rating BUY Sector relative Overweight Price (INR) 221 12 month price target (INR) 357 Zee is recouping its network market share – up 70bps QoQ in Q4FY21 Market cap (INR bn/USD bn) 212/2.9 – on the back of FTAs and Bengali, Telugu and Kannada channels. And Free float/Foreign ownership (%) 96.0/66.2 What’s Changed it gives ZEE has a chance to close the vast gap with leader STAR, which Target Price Rating/Risk Rating ⚊ has a market share of ~24%—500bps higher than ZEE’s. Although Street views higher investments to shore up content as negative, we INVESTMENT METRICS regard it as critical to capturing market shares in both TV and OTT. 75 50 Zee has scaled back future investments in SugarBox amid rising 25 0 investor concerns, not to mention the new operating dynamics in the -25 wake of uncertainty caused by the pandemic. Meanwhile, the Sales Growth EPS Growth RoE PE (%) (%) (%) (x) reconstituted board instils confidence. All in all, we retain ‘BUY’ with a Media Z IN Equity TP of INR357. FINANCIALS (INR mn) Strong focus on content creation; ad revenues to bounce back Year to March FY20A FY21E FY22E FY23E ZEEL will aggressively invest in content to enable it to monetize across various Revenue 81,299 77,299 88,918 95,803 channels and reduce the pressure of bidding wars for movie rights. Hindi mega- EBITDA 16,346 17,901 24,976 26,829 Adjusted profit (1,682) 4,641 17,164 19,191 starrer ’Radhe’’ helped Zee5 garner a huge amount of new subscribers while Diluted EPS (INR) 3.2 7.7 17.6 20.0 “FRIENDS: The Reunion’’ recorded 1mn + views on ZEE5 in less than seven hours.
    [Show full text]