 "Zee Entertainment hits 52-week high on strong Q2 results")
Zee Entertainment Enterprises has moved higher by 9% to Rs 421, also its fresh 52-week high on the BSE, after reported a solid 24% year-on-year (YoY) growth in its consolidated revenue at Rs 1,385 crore for the quarter ended September 2015 (Q2), on back of strong advertising revenue growth. The consolidated net profit grew 8% at Rs 247 crore on YoY basis.
The improvement in advertisement industry and improved performance of our network has helped us grow ahead of the market. We continue to see the positive results of our investments, said Dr. Subhash Chandra, Chairman, ZEE.
The domestic brokerages Religare Institutional Research and Motilal Oswal recommend ‘buy’ rating on the stock with target price of Rs 465 and Rs 500 respectively.
Zee’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margins improved 238 basis points quarter-on-quarter to 25.6% helped by price increases and strong ad revenue growth. Management indicated that sports business losses for FY16 could be lower than the guided Rs 100 crore given limited visibility on the India-Pakistan series, Rumit Dugar and Saumya Shrivastava of Religare said.
Strong ad growth is expected to continue led by viewership shares gains for existing channels and impact of &TV. Despite an estimated EBITDA loss of Rs 250 crore in FY16 towards &TV and doubling of sports losses due to higher days of India cricket, we expect ZEE to report earnings growth of around 17% in FY16, Shobhit Khare and Jay Gandhi of Motilal Oswal said.
At 01:50 pm, the stock up 8.4% at Rs 418 on the BSE. The trading volumes on the counter jumped more than five-fold with a combined 8.48 million shares changed hands on the BSE and NSE so far.
The improvement in advertisement industry and improved performance of our network has helped us grow ahead of the market. We continue to see the positive results of our investments, said Dr. Subhash Chandra, Chairman, ZEE.
The domestic brokerages Religare Institutional Research and Motilal Oswal recommend ‘buy’ rating on the stock with target price of Rs 465 and Rs 500 respectively.
Zee’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margins improved 238 basis points quarter-on-quarter to 25.6% helped by price increases and strong ad revenue growth. Management indicated that sports business losses for FY16 could be lower than the guided Rs 100 crore given limited visibility on the India-Pakistan series, Rumit Dugar and Saumya Shrivastava of Religare said.
Strong ad growth is expected to continue led by viewership shares gains for existing channels and impact of &TV. Despite an estimated EBITDA loss of Rs 250 crore in FY16 towards &TV and doubling of sports losses due to higher days of India cricket, we expect ZEE to report earnings growth of around 17% in FY16, Shobhit Khare and Jay Gandhi of Motilal Oswal said.
At 01:50 pm, the stock up 8.4% at Rs 418 on the BSE. The trading volumes on the counter jumped more than five-fold with a combined 8.48 million shares changed hands on the BSE and NSE so far.
