Zee Entertainment Shares Fall 2.98% As Q1 Profit Likely To See Steep Dip

Shares of Zee Entertainment Enterprises Ltd witnessed a decline of 2.14% in morning trade today as brokerages estimate a sharp decline of 80%-90% decline in profit for the quarter ended June 30 amid surging losses in ZEE5 and other expenses that may include the salaries. Meanwhile, sales are likely to see a jump of 3%-5% YoY.

According to leading brokerage house Kotak Institutional Equities, ""Our Q1 estimate implies that ZEE's ad revenues are still 20%-plus below Q1FY20 level. We bake in 3% QoQ (15 per cent YoY aided by a low base) growth in domestic subscription revenue driven by price increases on implementation of NTO 3 and a 3% YoY decline in international subscription revenue. We expect modest 2% growth in other operating revenue considering that there were no major movie releases (Zee Studios) during the quarter."

Brokerage firm Motilal Oswal estimates Zee Entertainment Enterprises' profit at Rs 16.20 crore, down 86% YoY. It sees the sales soaring 5.4% YoY to Rs 1944.70 crore.

Current market price of Zee Entertainment share is Rs 231.15 apiece with intraday fall of 2.98%. Its 52-week high price is Rs 286.90 apiece and 52-week low price is Rs 172.25 apiece, respectively. It has a market capitalisation of Rs 22,202.41 crore.
Zee Entertainment shares delivered shareholders return of 22% in last 3-months only, rallied 3% in last 6-months, declined 8% in last 1-year, and soared 54% in last 3-years.

Zee Entertainment for the quarter ended March 31, 2023 declared its consolidated total income at Rs 2126.35 crore, down .04% as compared to the last quarter total income of Rs 2127.23 crore. It announced its latest quarter net profit after tax at Rs -196.12 crore.

Emkay Global stated that muted advertising trends likely to lead to weak advertising growth. "While an increase in their advertising spends has been highlighted by FMCG companies, it is unlikely to reflect in the advertising revenue yet. Subscription revenue is likely to show a small uptick, as the NTO3.0 implementation comes into effect. With investments remaining elevated, margins are likely to fall further, after record-low levels in Q4FY23."

On the other hand, Nuvama Institutional Equities stated in its brokerage report, "We expect moderate growth in advertising for this quarter. Subscription revenues are likely to grow 2-3% YoY. With margins coming back for FMCG sector, we expect gradual recovery in ad spends in the coming quarters. Other sales and services of the company will be moderate because of high base in Q1FY23 when it had a good line up of movies."

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal, Nuvama Institutional Equities, Kotak Institutional, and Emkay Global. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.