Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Strong Growth; Maintain HOLD
Zee Entertainment Enterprises (ZEEL) posted a strong set
of numbers for Q4FY11, above our estimates due to betterthan-
expected sports performance. Core business
continues to remain on track with ad revenue guidance of
12-14%. We revise our estimates upwards and maintain
our HOLD rating on the stock
Strong headline numbers: ZEEL reported strong revenue
growth to Rs7980mn (up 22.9% YoY and down 3.3% QoQ)
on the back of advertisement and subscription revenue.
EBIDTA was healthy at Rs2268mn (up 23.5% YoY) on the
back of lower-than-expected losses in sports business.
Sports business continues to surprise: Backed by the
India-SA One Day series, the sports business posted
revenue of Rs1,424mn and operating loss of Rs152mn
during the quarter. This was against revenue of Rs965mn
and loss of Rs1,030mn in Q3FY11. For FY12 the company
has guided operating loss of Rs0.8bn-1bn.
Subscription revenues a big positive: Domestic
subscription revenue grew 34% YoY and 11.9% QoQ to
Rs2,023mn. DTH subscription revenue too grew by 19.8%
sequentially to Rs984mn on back of inclusion of Ten
Cricket in the package.
Valuations Fair/ Upward revision of estimates: We have
upgraded our revenue estimates for FY12 and FY13 due to
the strong subscription and advertising revenues growth.
However, we continue to have a HOLD rating on the stock
with an increased target price of Rs146 valuing the stock
at 19x FY13EPS of 7.66
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Strong Growth; Maintain HOLD
Zee Entertainment Enterprises (ZEEL) posted a strong set
of numbers for Q4FY11, above our estimates due to betterthan-
expected sports performance. Core business
continues to remain on track with ad revenue guidance of
12-14%. We revise our estimates upwards and maintain
our HOLD rating on the stock
Strong headline numbers: ZEEL reported strong revenue
growth to Rs7980mn (up 22.9% YoY and down 3.3% QoQ)
on the back of advertisement and subscription revenue.
EBIDTA was healthy at Rs2268mn (up 23.5% YoY) on the
back of lower-than-expected losses in sports business.
Sports business continues to surprise: Backed by the
India-SA One Day series, the sports business posted
revenue of Rs1,424mn and operating loss of Rs152mn
during the quarter. This was against revenue of Rs965mn
and loss of Rs1,030mn in Q3FY11. For FY12 the company
has guided operating loss of Rs0.8bn-1bn.
Subscription revenues a big positive: Domestic
subscription revenue grew 34% YoY and 11.9% QoQ to
Rs2,023mn. DTH subscription revenue too grew by 19.8%
sequentially to Rs984mn on back of inclusion of Ten
Cricket in the package.
Valuations Fair/ Upward revision of estimates: We have
upgraded our revenue estimates for FY12 and FY13 due to
the strong subscription and advertising revenues growth.
However, we continue to have a HOLD rating on the stock
with an increased target price of Rs146 valuing the stock
at 19x FY13EPS of 7.66
No comments:
Post a Comment