Zee Entertainment Q1 Review - Delay In Ad-Recovery To Overweigh Margins: Prabhudas Lilladher
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
We cut our earnings per share estimates of Zee Entertainment Enterprises Ltd. by 20%/9% for FY22/FY23 respectively as recovery in domestic ad-revenues has been delayed (ad-revenues in FY22 can more or less be a replica of FY20 versus earlier expectation of double digit growth).
Delayed recovery is likely to drag margins given the ongoing investment drive in digital, movies and linear TV (Hindi, Marathi and Tamil content to be revamped in Q2).
While there are near term headwinds on margins we remain positive on ZEE Entertainment given-
strong position in Bengali, Kannada and Telugu markets
likely emergence of ZEE5 as future growth engine in changing content consumption landscape (paid subscribers within digital domain to grow by ~4 times in five years) and
undemanding valuations (stock trades at 12 times FY23EPS).
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.