ICICI Direct: Zee Entertainment Reports Weak Q4 Further Accentuated By One-Offs
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ICICI Direct Report
Zee Entertainment Enterprises Ltd.’s Q4 FY20 performance truly had a plot twist of a Bollywood potboiler.
The washout advertisement revenues (approximately 15% YoY decline) were on expected lines (economic slowdown and some Covid-19 impact) but stupendous subscription growth of approximately 31% YoY was a pleasant surprise (Zee5 contribution now making the difference).
The costs, however, told a different story, with a slew of one-offs such an accelerated amortisation expenses of Rs 259.8 crore, provision of Rs 343 crore for doubtful debts, exceptional loss of Rs 113.7 crore towards goodwill write-off and Rs 383.5 crore mark to market (MTM) losses on overseas investments.
Ebitda loss, consequently, was at Rs 283.9 crore with reported net loss of Rs 766.7 crore.
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