Shares of Zee Entertainment Enterprises Ltd (ZEEL) sank into the red in early trade on Tuesday, June 24, as investors took partial profits off the table following the strong rally seen in the previous session.
At 9.33 a.m., shares of the media network were quoting Rs 147.21, lower by 1.6 percent on the NSE. The fall in Zee Entertainment's shares dragged the Nifty Media index into the red as well, leading the index to sink 0.3 percent despite the optimistic market mood.
In the previous session, ZEEL shares rallied sharply, after the company shared its plans to spur viewership, expand revenues and boost profitability.
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Compared to the largest player in the media industry, Zee noted that it was the most profitable network, despite being smaller in scale due to its lack of presence in the sports segment. Further, Zee said it is executing its growth plans for the next few years to further strengthen its presence in General Entertainment.
Major players are shifting to a 'full stack' model where they continue to operate their traditional
channels, but also incorporate emerging media into their platforms, noted Zee. The firm plans to "enhance its digital offerings in a profitable manner both domestically and internationally without going beyond content ecosystem."
Zee is also positioned to become leading & profitable OTT player, having completed the investment cycle. The entertainment player is also developing new business verticals to expand its target audience and augment revenue streams, such as micro dramas, UGC, Live Events, Edutainment, Emerging Sports, and more.
"The capital deployed in the growth initiatives will be aimed at enhancing the profitability of the company in next 3 years and surpass the highest EPS delivered by the company on enhanced capital base," said the firm.
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