ICICI Direct: Zee Entertainment Reports Weak Q4 Further Accentuated By One-Offs
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ICICI Direct: Zee Entertainment Reports Weak Q4 Further Accentuated By One-Offs

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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.

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.

Click on the attachment to read the full report:

ICICI Direct ZeeEnt Q4FY20 Result Review.pdf

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