ZEE Entertainment Enterprises lost Rs 298.98 crore in the December quarter from Rs 398.01 crore in the same quarter a year ago.
G Entertainment Entertainment Share Price: Shares of ZEE Entertainment Enterprise fell 4 percent in intraday trading at Rs 280.15 on Thursday. Shares of the company have fallen due to weak December quarter results.
ZEE Entertainment Enterprise released their December quarterly results on February 2nd. The company said its consolidated net profit for the third quarter stood at Rs 298.98 crore, down from Rs 398.01 crore in the same quarter last fiscal. The company’s total revenue also declined to Rs 2,130.44 crore in the December quarter from Rs 2,756.93 crore in the same quarter last fiscal.
The agency says it is incorrect to compare December quarter results with last year’s figures because of the many obstacles faced by the Corona epidemic during this period. The company’s advertising revenue stood at Rs 1,260.80 crore in the December quarter, compared to Rs 1,302.03 crore in the year-ago period. The company had a subscription revenue of Rs 790.15 crore in the December quarter, compared to Rs 841.91 crore in the same quarter last year.
After the December quarterly results, let us know what the brokerage firms think about the company and the stock:
Reducing the advertising costs of FMCG companies and increasing the price of RM across different sectors creates risks for increasing advertising revenue. With new content launches and continued investment in the OTT segment, its market share is expected to improve and be a better indicator of ZEE5’s performance. We revised our EBITDA and PAT estimates for FY23E / FY24E to slightly reduce (3-4 percent).
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We value ZEE 25 times the earnings per share (EPS) for FY24E and a target price of Rs 410 for the stock, which is slightly lower than the previous target of Rs 425. We maintain our “BUY” rating for the stock.
ZEE’s profits and advertising revenue declined. Decreased advertising spending by FMCG companies was a major factor in the decline in advertising revenue. In addition, the decline in network shares has also reduced advertising revenue. However, if the company continues to invest in content, we expect a gradual improvement in viewership shares. Our FY23 / FY24 EPS estimates are wide and we maintain a BUY rating on ZEEL with a target price of Rs.
ZEE stock is currently trading at 20 times FY23E earnings and 17.3x FY24E earnings, which in our opinion is cheaper. However, the stock will be rewritten as soon as it merges with Sony and the two digitally create strategies together and go to market. We are revising our “Buy” rating 20 times based on one-year forward P / E with a target price of Rs. 450 for the stock.
The research firm has maintained a “BUY” rating of the company and set a target price of Rs 350 for the stock. The research firm says it is important to complete the merger with Sony. In addition to approvals from NCLT and elsewhere, major shareholders need to see how they vote for it.
The brokerage house has maintained a “BUY” rating for the stock with a target price of Rs 427. The brokerage says it has been consistent with the company’s revenue estimates. Progress is also being made towards the integration of ZEE-Sony. However, litigation with a large minority shareholder can increase the risk.