Moneycontrol
Last Updated : Oct 11, 2018 11:12 AM IST | Source: Moneycontrol.com

Zee Entertainment rises 2% post Q2 numbers; CLSA, Credit Suisse maintain buy

The company's Q2 standalone net profit rose by 4 percent to Rs 377 crore against Rs 360 percent in the same quarter last fiscal.

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Share price of Zee Entertainment Enterprises rose 2.4 percent intraday Thursday after company registered jump in its standalone profit.

The company's Q2 standalone net profit rose by 4 percent to Rs 377 crore against Rs 360 percent in the same quarter last fiscal.

However, its consolidated net profit fell 38 percent to Rs 386.7 crore versus Rs 625.5 crore, while revenue rose 25 percent to Rs 1,976 crore versus Rs 1,582 crore (YoY).

Consolidated advertising revenue increased 22.7 percent year-on-year to Rs 1,210.6 crore and subscription business rose by 21.3 percent to Rs 608.2 crore.

"The 23.3 percent domestic advertising revenue growth, while aided by a softer base, was driven by the robust demand across key categories for TV advertising and ZEES's contribution to advertising revenue," Zee Entertainment said.

Check out what brokerages are saying after second quarter results announcement

Brokerage: CLSA | Rating: Buy | Target: Rs 670

Broking firm CLSA has maintained buy on Zee Entertainment with a potential upside of 46 percent.

The firm cut target price to Rs 670 from Rs 675 per share.

It believes that the Q2FY19 results were ahead of estimates led by growth in domestic advertising revenues. The company management has reiterated strong ad and subscriptions outlook. Its digital platform ZEE5 has reported very encouraging numbers.

Brokerage: Macquarie | Rating: Outperform | Target: Rs 556

Macquarie maintained outperform call on Zee Entertainment with a target of Rs 556 per share. It sees a potential upside of 21 percent.

The company has delivered blockbuster Q2 led by a strong show on all counts, said Macquarie.

Its TV ad growth remains robust and keenly watching on updates related to Zee5, expecting further increase in reach, it added.

Brokerage: Credit Suisse | Rating: Buy | Target: Rs 560

Credit Suisse has maintained buy on the stock but cut target to Rs 560 from Rs 640 per share.

It is another strong quarter with the base business doing extremely well. EBITDA margin arose despite rising investments in digital platform, said Credit Suisse.

The firm maintains estimate but lower the valuation multiple.

Brokerage: BofAML | Rating: Neutral | Target: Rs 470

BofAML has maintained neutral call on Zee Entertainment with a target of Rs 470. It sees potential upside of 2 percent.

The company in the Q2 reported strong set of numbers, beating the estimates, said BofAML.

Subscription growth was led by catch-up revenue & phase 3 realization, while it maintained neutral as questions remain on sustainability of numbers, it added.

At 10:50 hrs Zee Entertainment Enterprises was quoting at Rs 467.70, up Rs 8.50, or 1.85 percent on the BSE.

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First Published on Oct 11, 2018 10:55 am
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