Zee Entertainment Enterprises was up 1.1% at Rs 535 at 13:07 IST on BSE after the company announced that it has entered into definitive agreements to sell its loss making sports broadcasting business to Sony Pictures Networks India.
The announcement was made during market hours today, 31 August 2016.Meanwhile, the S&P BSE Sensex was up 93.78 points or 0.33% at 28,436.79.
On BSE, so far 2.17 lakh shares were traded in the counter compared with average daily volume of 83,070 shares in the past one quarter. The stock hit a high of Rs 543.85 so far during the day which is a 52-week high for the counter. The stock hit a low of Rs 523.85 so far during the day. The stock hit a 52-week low of Rs 350.15 on 17 February 2016. The stock had outperformed the market over the past one month till 30 August 2016, rising 6.56% compared with the Sensex's 1.04% rise. The scrip had also outperformed the market in past one quarter, gaining 19.15% as against Sensex's 6.05% rise.
The large-cap company has equity capital of Rs 96.04 crore. Face value per share is Rs 1.
Zee will sell its sports broadcasting business to Sony Pictures Networks India and its affiliates for all-cash consideration of $385 million. Zee's sports broadcasting business is carried through TEN Sports channels brand that operates in several countries including the Indian sub-continent, Maldives, Singapore, Hong Kong, Middle East and Caribbean. TEN Sports holds cricket broadcast rights from major cricket boards in the world. It also holds rights to wrestling, football, tennis, golf among other sporting events across the world.
The transaction is expected to be completed within 4 to 5 months. Zee said that the decision to sell the sports business is a part of reshuffle of the product portfolio. Zee is currently focusing on transforming itself into an all-round media and content company comprising of five verticals viz. broadcast, digital, films, live events and international business. The sports broadcasting business clocked revenue of Rs 631 crore for the year ended 31 March 2016 (FY 2016), constituting 10.79% of Zee's consolidated revenue. The sports business incurred a net loss of Rs 37.20 crore in FY 2016.
Zee's consolidated net profit rose 21.8% to Rs 216.96 crore on 18.5% growth in net sales to Rs 1571.62 crore in Q1 June 2016 over Q1 June 2015.
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Zee Entertainment Enterprises is one of India's leading television media and entertainment companies.
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