Zee Entertainment Enterprises Ltd Q3FY19E Result Expectation

Revenue growth is likely to be aided by ~16% yoy advertisement revenue growth on the back of market share gain in the regional market

Jan 15, 2019 02:01 IST India Infoline News Service

Zee Entertainment Enterprises
Zee Entertainment Enterprises Ltd Q3FY19E Result Expectation

Expectations for Q3FY19E:
• Revenue – Rs2,078cr, up 13% yoy
• EBITDA – Rs670cr, up 13% yoy
• EBITDA Margin – 32.2%, a contraction of 9bps yoy
• PAT – Rs430cr, up 15% yoy

Highlights for Q2FY19:
• Revenue – Rs1,976cr, up 24.9% yoy owing to ad-spend recovery and higher viewership share
• EBITDA – Rs676cr, up 37.6% yoy
• PAT – Rs387cr, down 21.2% yoy

Remarks:
• Advertisement revenue growth of ~15% yoy to be aided by market share gain in the regional market.
• We expect subscription revenue to grow by ~13% yoy on favourable base.
• Launch of OTT platform ZEE5 leading to higher investment in content is likely to weigh on margin.
• Data related to ZEE5 would be the key thing to watch.

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