Anand Rathi: Zee Entertainment’s Risk-Reward Looks Favourable
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Anand Rathi Report
The sharp drop in advertisement revenue pulled down Zee Entertainment Enterprises Ltd.’s revenue 3.4% YoY to Rs 19.51 billion in Q4 FY20. Domestic advertisement revenue slid 15.1% YoY.
On the new tariff implemented last year and ramp-up of Zee5’s subscriber base, domestic subscription revenue grew 40.7%.
At the Ebitda level the company reported a Rs 2.84 billion loss (versus Rs 5.68 billion profit a year ago), due to a one-time item of Rs 6 billion (includes one-time accelerated amortization of Rs 2.6 billion and provision of Rs 3.4 billion on account of Covid-19 led uncertainty).
Adjusting for this, Ebitda was Rs 3.19 billion (down approximately 44% YoY) with a 16.4% margin (against 28.1% a year back).
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