Anand Rathi: Zee Entertainment’s  Risk-Reward Looks Favourable
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Anand Rathi: Zee Entertainment’s Risk-Reward Looks Favourable

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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).

Click on the attachment to read the full report:

Anand Rathi Zee Entertainment Q4FY20 Result Review.pdf

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