A director at Zee Entertainment Enterprises Ltd bought 1,679,510 shares at 119.068INR and the significance rating of the trade was 87/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over th...
The independent financial analyst theScreener just lowered the general evaluation of ZEE ENTERTAINMENT ENTS. (IN), active in the Broadcasting & Entertainment industry. As regards its fundamental valuation, the title still shows 1 out of 4 possible stars. Its market behaviour, however, has slightly deteriorated and will be qualified as moderately risky moving forward. theScreener considers that these new qualifications justify an overall rating downgrade to Neutral. As of the analysis date Februa...
ZEE ENTERTAINMENT: Weak recovery, viewership loss; margin guidance cut for second quarter in a row (Z IN, Mkt Cap USD2.5b, CMP INR197, TP INR215, 9% Upside, Neutral) Zee Entertainment (Z)’s EBITDA/PAT jumped 56% YoY (8%/28% miss) on a lower base, as ad revenue was up 2.2x YoY driven by the lower impact of the second wave v/s the previous year. However, it was still 23% below pre-COVID levels. We revise down our EBITDA/PAT estimate by 12% for both FY22/FY23 for the second straight quarter...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Q3FY20 results highlights Cons. Rev. at ~Rs20.5bn fell 5.5% yoy (3% miss). EBITDA fell ~25% yoy to ~Rs5.7bn (4% miss), while APAT stood at ~Rs3.9bn (26% yoy fall; 12% miss). Adjusted for one-time credit loss of ~Rs376m, EBITDA decline would be ~20% yoy (in-line). Domestic ad rev. fell ~15.7% yoy (IDFCe: 13% fall) – weak market conditions, shift in festive season this time, exit of 2 FTA channels from DD FreeDish, and loss of Zee’s market-share contributed to the fall. Reported ad rev. (incl....
(Z IN, Mkt Cap USD4b, CMP INR300, TP INR300, Neutral) Outlook on subscription growth hazy** 3QFY20 revenue momentum was hit by weak consumer advertisement spends in a slowing economy and higher expenses, which dragged margins; the same trend is expected to continue for another quarter. ** As ad/subscription revenue outlook looks weak due to TRAI’s latest order over capping of channel prices, we have lowered our FY20/FY21 revenue estimate by 4%/8% and EPS estimate by 14%/18%. Revenue miss by 5...
Event: Zee Entertainment Enterprises (Z) has announced that the promoter group is planning to sell ~16.5% stake in Z, to financial investors, to raise funds to repay lenders with whom the shares have been pledged. Out of the above, 2.3% will be sold to OFI Global China Fund (subsidiary of Oppenheimer Funds Inc). Post this sale, Essel Group (promoters) will own ~5% in Z (encumbered holdings will fall to a meagre ~1.1%). Quick Take: Issues around pledged shares addressed: At the floor price o...
ZEE ENTERTAINMENT: Balance sheet issues, promoter stake sale to drive the narrative; Subs growth strong(Z IN, Mkt Cap USD3.6b, CMP INR265, TP INR285, 8% Upside, Neutral) ** Strong subscription revenue masked by margin contraction: Consol. revenue increased 7% YoY to INR21.2b (4% miss) on account of strong 19% domestic subscription growth, partly offset by subdued 1% ad revenue growth. EBITDA grew by a mere 2.5% YoY to INR6.9b (6% miss), with the margin shrinking 150bp YoY to 32.7% due to a 23% ...
Zee Entertainment Enterprises (Z) hosted a conference call to clarify the recent announcement of VTB Capital’s encumbrance creation on Z shares (~10.7% of equity) and give an update on the status of various promoter-level deleveraging initiatives. Key Takeaways: VTB encumbrance was created in September 2017 and was a structured pledge on Z’s shares. The same has been disclosed now as new SEBI regulations (issued on 7 Aug’ 19) mandate all direct/indirect encumbrances to be disclosed. VTB’s lo...
Event Zee Entertainment (Zee) promoters are selling 11% stake in the company, to Invesco Oppenheimer Developing Markets Fund, for Rs42.24bn (valuing the stock at Rs400/share, ~11% premium to today’s closing price) to pare down promoter level debt. Key highlights from the call (other details inside) Promoters confirmed that promoter level debt (mostly loan against shares across group companies, including Zee) stood at Rs110bn, as of today. They are in advanced stages of selling other media and...
ANNUAL REPORT THREADBARE (ART) | ZEE ENTERTAINMENT FY19: Earnings to cash flow conversion continues to deteriorate Zee’s FY19 annual report highlights the company’s improved operating performance – EBIDTA rose 23% to INR25.6b. However, earnings to cash flow conversion continued deteriorating to 42% (lowest in 10 years), as working capital increased. Cash conversion cycle increased sharply from 371 days in FY18 to 440 days in FY19, primarily due to an increase in (a) inventory by INR11.5b to ...
Q1FY20 results highlights Cons. rev. stood at Rs20.1bn (+13.3% yoy; 2% beat), cons. EBITDA at Rs6.6bn grew by 16.6% yoy (5% beat) and adj. (for MTM profit on pref. shares and one-offs) PAT at Rs4.6bn grew by 33.5% yoy (13% beat). Adjusted for Ind-AS 116 impact (of Rs140m) and subs. rev. (of Rs150m) attributable to Q4FY19 booked in this quarter, EBITDA would have been Rs6.3bn (in line), a growth of 11.5% yoy. Domestic ad rev. grew by 4.2% yoy (IDFCe: 5%) due to reach issues post NTO, shift of...
ZEE ENTERTAINMENT: Impressive show but promoter stake sale overhang remains (Z IN, Mkt Cap USD5b, CMP INR361, TP INR390, 8% Upside, Neutral) EBITDA exceeds estimate led by robust subscription growth: revenue increased 13% YoY to INR20.1b on account of strong 47% domestic subscription growth, partly offset by subdued 4% domestic ad revenue growth. While the implementation of NTO improved channel pricing and supported subscription growth, it also hurt ad growth due to weak viewership and th...
Zee Entertainment (Z) continues to be India’s largest entertainment network in terms of viewership market share (+170bps yoy) and is also India’s largest digital original content producer (~60 titles across 6 languages). However, as digital medium gains prominence in terms of content consumption, Z has significantly ramped up investments, through WC, which has led to it reporting negative FCF of Rs1.4bn (vs +Rs2.4bn in FY18), for the first time. Promoter entities have also been extended ICDs wor...
Q4FY19 results highlights Cons. rev. stood at Rs20.2bn (+17.0% yoy; 8% beat), cons. EBITDA at Rs5.7bn grew by 12.3% yoy (14% beat) and adj. (for MTM profit on pref. shares and one-offs) PAT at Rs3bn grew by 138.8% yoy (17% beat). Domestic ad rev. grew by strong 17.7% yoy (IDFCe: 10.8%) despite the uncertainty on reach prior and post the NTO implementation. Growth was supported by market-share gains and digital ad rev. ramp up. Domestic subs rev. grew by 3.9% yoy (IDFCe: 2.5%) due to NTO rel...
Zee Entertainment: Intensive content investment; Promoter stake sale remains key overhang (Z IN, Mkt Cap USD5b, CMP INR361, TP INR400, 11% Upside, Neutral) Other business drives growth: Despite relatively subdued traditional business performance, ZEE reported healthy 17% YoY consol. revenue growth at INR20.2b (6% beat). This was primarily on the back of stellar growth in its other business on account of two movie releases, while domestic subscription/ad growth was at 4%/18%. EBITDA grew 1...
Event Zee Entertainment Enterprises’ (Z) shares fell sharply on Friday as pledged shares were sold in the market and Z accepted that their promoter, the Essel Group, is in default on all covenants for loans against Z’s shares (62% of promoter holding was pledged). This was accentuated by an article in The Wire that alleged links between the Essel Group and a company which the SFIO (Serious Fraud Investigations Office) is investigating for high deposits during demonetization. Over the past thr...
Q3FY19 results highlights Cons. rev. stood at Rs21.7bn (+17.9% yoy; 3% beat), cons. EBITDA at Rs7.5bn grew by 26.9% yoy (5% beat) and adj. (for MTM profit on pref. shares) PAT at Rs5.3bn grew by 26.2% yoy (10% beat). Domestic ad rev. grew by strong 20.6% yoy (IDFCe: 18.5%) despite an unfavourable base (30.4% yoy growth in Q3FY18) led by market-share gains, digital ad rev. ramp up (utilisation rates on ZEE5 already 50%+) and was broad based across sectors. International ad rev. surprised by 4...
Zee Entertainment: A stellar show; uncertainty over promoter stake sale a key concern (Z IN, Mkt Cap USD6.2b, CMP INR457, TP INR475, 4% Upside, Neutral) Another episode of robust performance: Consol. revenue grew 18% YoY to INR21.7b (in-line), driven by robust ad/subscription growth. Domestic ad revenue increased 21% YoY, led by contribution from ZEE5 and a higher network viewership share. Domestic subscription revenue grew 29% YoY, led by a favorable base and monetization of phase-III su...
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