Zee Entertainment Q3 Review - One-Step Forward, Multiple-Step Backward: Dolat Capital
Zee Entertainment channels. (Source: BloombergQuint)

Zee Entertainment Q3 Review - One-Step Forward, Multiple-Step Backward: Dolat Capital

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.

Dolat Capital Report

Zee Entertainment Enterprises Ltd.’s Q3 FY21 operating performance was ahead of estimates led by recovery in ad-revenues (up 7.5% YoY) and lower opex.

But, adjusted for the content syndication deal; free cash flow was negative approximately Rs 5 billion reversing the FCF generated in H1 FY21.

More importantly, the company’s management guided for significant step-up in investments in FY22 in movie production (35-40 versus current 7-8), digital and broadcast business.

This is likely to severely impact Ebitda margin, working capital and thus FCF. This is a serious negative in our view

Click on the attachment to read the full report:

Dolat Capital Zee Q3FY21 Result Update.pdf


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