CMP: 174
Total income 1,338 Cr
2,112 Cr (-36.67%) YoY | 1,992 Cr (-32.31%) QoQ
Year ending revenue: 8,413 Cr Vs. 8,142 Cr (-3.11%)
Net Profit of 29.2 Cr
529.8 Cr (-94.21%) YoY (765.8) Cr (103.23%) QoQ
Year ending Net profit: 525 Cr Vs. 1,567 Cr (-66.64%)
EPS (in Rs.) 0.32
5.52 YoY | (7.98) QoQ
Year ending EPS: 5.48 Vs. 16.32
View: Result is line with the expectation. YoY revenue and profit both have declined although improved from QoQ. Revenue corrected due to significantly declined advertisement revenue and it was down by more than 64.5% in YoY and 59% in QoQ on account of Covid-19 lockdown impact one of big reason.
Business Updates & Highlights:
Q1FY21 cons EBITDA was around INR 219.7 Cr Vs. 901 Cr in Q1FY20 Vs. (370.9) Cr in Q4FY20 therefore declined by 75.7% in YoY and up 170% in QoQ. EBITDA margin in Q1FY21 was 16.7% Vs. 44.9% in Q1FY20.
Advertisement revenue in Q1FY21 was around INR 421 Cr Vs. 1,186 Cr in Q1FY20 Vs. 1,039 Cr in Q4FY20. Therefore declined by 64.5% in YoY and 59.4% in QoQ.
Subscription revenue in Q1FY21 was around INR 744 Cr Vs. 709 Cr in Q1FY20 Vs. 742 Cr in Q4FY20. Therefore up by 4.9% in YoY and 0.26% up in YoY. Domestic subscription revenues on a higher base (47% growth in base quarter), primarily led by ZEE5 subscription revenue
Other sale and service in Q1FY21 was around INR 146.6 Cr Vs. 112.6 Cr in Q1FY20 Vs. 170.8 Cr in Q4FY20 therefore declined by 30.3% in YoY and 14% in QoQ.
ZMC adds 6mn subscribers on YouTube; with 60mn subscribers, it is the second most subscribed Indian music channel.
Financial
ROE and ROCE is around 7% and 14% respectively and book value per share is around INR 97 and share is currently trading at 1.9x of its book value. Company is currently trading at annualized PE of around 60 which is expensive as per Industry benchmark. Promoter holding in the company is around 4.8% which is too low as promoter (Chandra) has already offloaded their stake. FIIs and mutual hold around 67.3% and 3.8% respectively.
Position: Share strong support price is INR 152/140. Long term investor based on their risk appetite can continue with the company.
Share View: Share price high 376 (52 week) and now 175. Zee Entertainment Enterprises Limited is a media and entertainment company engaged in providing broadcasting services. The Company operates through Content and Broadcasting segment. The Company's brands include Zee TV, Zee Cinema, Zee Action, Zee Classic, Zee Anmol, Zee Cafe, Zee Studio, Zee Salaam, Zing, ETC Bollywood, Zee Q and Zindagi. The Company has a range of offerings in the regional language domain with channels, such as Zee Marathi, Zee Talkies, Zee Bangla, Zee Bangla Cinema, Zee Telugu, Zee Kannada, Zee Tamil and Sarthak TV. It high definition offerings include Zee TV HD, Zee Cinema HD, &tv HD, Zee Studio HD, Zee Cafe HD, &pictures HD, Ten 1 HD and Ten Golf HD. The Company has operations in over 170 countries.
Opportunities
Strong bounce back in viewership shares across the network post lockdown; 19.2% all India entertainment share over the last 4 weeks. Zee5 is the main contributor and future business and profitability for the company for their subscriber based business. ZEE5 continues to expand its partnership network, globally. ZEE5 global MAUs and DAUs stood at 39.7mn and 4.0mn respectively in Jun-20. ZEE5 released 18 original series/movies during the quarter. Resumption of original content and launch of two channels on FTA platform led to recovery in market share. Regain market share in Hindi; Strengthen leadership and second position in Bengali and Tamil markets, respectively.
Risk
Highly volatile expensive share. Share has significantly down from 550 level to till 130 due to various CG and debt issues with the old management. Mainly dependent upon on Zee5 as and future business contributor now. Company advertisement revenue was already impacted and advertisement revenue remains vulnerable to factors like market competition, television viewership for the channels, the quality and popularity of content being broadcast, trends in the media sector, regulatory changes and to the level of economic activity in general and now Covid-19 pandemic further deteriorated this segment revenue. Advertisement segment revenue was covered more than 50% of business in YoY.
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2,112 Cr (-36.67%) YoY | 1,992 Cr (-32.31%) QoQ
Year ending revenue: 8,413 Cr Vs. 8,142 Cr (-3.11%)
Net Profit of 29.2 Cr
529.8 Cr (-94.21%) YoY (765.8) Cr (103.23%) QoQ
Year ending Net profit: 525 Cr Vs. 1,567 Cr (-66.64%)
EPS (in Rs.) 0.32
5.52 YoY | (7.98) QoQ
Year ending EPS: 5.48 Vs. 16.32
View: Result is line with the expectation. YoY revenue and profit both have declined although improved from QoQ. Revenue corrected due to significantly declined advertisement revenue and it was down by more than 64.5% in YoY and 59% in QoQ on account of Covid-19 lockdown impact one of big reason.
Business Updates & Highlights:
Q1FY21 cons EBITDA was around INR 219.7 Cr Vs. 901 Cr in Q1FY20 Vs. (370.9) Cr in Q4FY20 therefore declined by 75.7% in YoY and up 170% in QoQ. EBITDA margin in Q1FY21 was 16.7% Vs. 44.9% in Q1FY20.
Advertisement revenue in Q1FY21 was around INR 421 Cr Vs. 1,186 Cr in Q1FY20 Vs. 1,039 Cr in Q4FY20. Therefore declined by 64.5% in YoY and 59.4% in QoQ.
Subscription revenue in Q1FY21 was around INR 744 Cr Vs. 709 Cr in Q1FY20 Vs. 742 Cr in Q4FY20. Therefore up by 4.9% in YoY and 0.26% up in YoY. Domestic subscription revenues on a higher base (47% growth in base quarter), primarily led by ZEE5 subscription revenue
Other sale and service in Q1FY21 was around INR 146.6 Cr Vs. 112.6 Cr in Q1FY20 Vs. 170.8 Cr in Q4FY20 therefore declined by 30.3% in YoY and 14% in QoQ.
ZMC adds 6mn subscribers on YouTube; with 60mn subscribers, it is the second most subscribed Indian music channel.
Financial
ROE and ROCE is around 7% and 14% respectively and book value per share is around INR 97 and share is currently trading at 1.9x of its book value. Company is currently trading at annualized PE of around 60 which is expensive as per Industry benchmark. Promoter holding in the company is around 4.8% which is too low as promoter (Chandra) has already offloaded their stake. FIIs and mutual hold around 67.3% and 3.8% respectively.
Position: Share strong support price is INR 152/140. Long term investor based on their risk appetite can continue with the company.
Share View: Share price high 376 (52 week) and now 175. Zee Entertainment Enterprises Limited is a media and entertainment company engaged in providing broadcasting services. The Company operates through Content and Broadcasting segment. The Company's brands include Zee TV, Zee Cinema, Zee Action, Zee Classic, Zee Anmol, Zee Cafe, Zee Studio, Zee Salaam, Zing, ETC Bollywood, Zee Q and Zindagi. The Company has a range of offerings in the regional language domain with channels, such as Zee Marathi, Zee Talkies, Zee Bangla, Zee Bangla Cinema, Zee Telugu, Zee Kannada, Zee Tamil and Sarthak TV. It high definition offerings include Zee TV HD, Zee Cinema HD, &tv HD, Zee Studio HD, Zee Cafe HD, &pictures HD, Ten 1 HD and Ten Golf HD. The Company has operations in over 170 countries.
Opportunities
Strong bounce back in viewership shares across the network post lockdown; 19.2% all India entertainment share over the last 4 weeks. Zee5 is the main contributor and future business and profitability for the company for their subscriber based business. ZEE5 continues to expand its partnership network, globally. ZEE5 global MAUs and DAUs stood at 39.7mn and 4.0mn respectively in Jun-20. ZEE5 released 18 original series/movies during the quarter. Resumption of original content and launch of two channels on FTA platform led to recovery in market share. Regain market share in Hindi; Strengthen leadership and second position in Bengali and Tamil markets, respectively.
Risk
Highly volatile expensive share. Share has significantly down from 550 level to till 130 due to various CG and debt issues with the old management. Mainly dependent upon on Zee5 as and future business contributor now. Company advertisement revenue was already impacted and advertisement revenue remains vulnerable to factors like market competition, television viewership for the channels, the quality and popularity of content being broadcast, trends in the media sector, regulatory changes and to the level of economic activity in general and now Covid-19 pandemic further deteriorated this segment revenue. Advertisement segment revenue was covered more than 50% of business in YoY.
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