During the period, margins may decline 420 basis points at 24.5 percent against 28.7 percent year-on-year due to increased content and operational costs of the new channels. The management has indicated that it will improve sequentially.
Brokerage Macquarie has reiterated its outperform rating on the media conglomerate Zee Entertainment with target price of Rs 375 apiece. Consistency in good cash generation and no stress on balance sheet from related party transactions are positives, it said.
Zee Entertainment is confident of beating the expected industry growth rate of 11-12 percent “on the back of market share gains and a bigger content line-up,†CMD Punit Goenka told Reema Tendulkar and Sumaira Abidi in an interview.
Analysts feel ad revenues may register a growth of 15-17 percent on back of new channels &TV and Zindagi. Regional channels are likely to further boost revenues. Subscription revenue is seen growing by 10 percent.