Neutral Zee Entertainment; target of Rs 70: Motilal Oswal

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Zee's revenue growth was driven by FIFA World Cup broadcasting, with a 17% QoQ increase in consolidated revenue.
  • Subscription revenue grew 30% YoY, driven by higher digital ARPU and FIFA-led subscriber additions.
  • Linear TV profitability deteriorated further, with revenue declining 3.6% YoY and EBITDA falling 84% YoY.
  • Management remains cautiously optimistic about 2H, led by festive advertising demand and continued digital subscriber monetization.

Thesis Validation Checklist

  • Investors should watch for improvement in advertising revenue, driven by festive demand and a stronger content pipeline.
  • Continued growth in subscription revenue, driven by improving digital engagement and a stronger content slate, is key to validating the thesis.
  • Investors should monitor the company's ability to maintain its market share and improve profitability, despite higher content investments and a structural shift in ad spends to digital.