Zee Entertainment Q1, FY2021 Result Update – Why Share Gained 5% Despite Poor Results? ~ The Finance Magic – Stock Market | Personal Finance

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Stock
Name: Zee Entertainment Enterprise Ltd.

NSE
Code: ZEEL

BSE
Code: 505537

Sector:
Media and Entertainment

Market
Cap: Rs. 19,157.26 Crore

P/E:
63.85  |  Industry P/E: 25.65

P/B:
2.50

EPS:
0.27  |   ROE: 25.56%   |  ROCE:  34.94%

Promoter
Holding: 4.77% (As of 30th June 2020)

Quarterly Update

Zee
Entertainment Enterprise Limited (ZEEL) share price has increased by more than
5% on Wednesday, post results. The market reacted positively to the company’s
quarterly earnings despite weak Q1 FY2021 figures. 

Key highlights: 

  1. The
    consolidated net profit declined by 94.5% year on year from Rs. 529.8
    Crore in the corresponding quarter last year to Rs. 29.3 Crore in Q1
    FY2021.
  2. The
    consolidated operating revenue dropped by 34.7% to Rs. 1312 Crore from Rs.
    2008.1 crore in the corresponding quarter last year.
  3. EBITDA
    declined by 66.7% to Rs. 219.9 Crore from Rs. 659.8 crore in Q1 FY2020.
  4. Domestic
    ad-revenue declined by 67% to Rs. 219.9 crore in Q1 FY21 from Rs. 659.8
    Crore in Q1 FY2020.
  5. Steep
    ad decline has affected the company’s operating profit. The reason for
    decline being the unprecedented COVID-19 lockdown which led to no fresh
    content production on the platform and severe restrictions were imposed on
    regular business activity. However, according to the company, content
    creation and some business activities have resumed due to ease in lockdown
    in various states and the company expects to generate higher ad revenues
    in the next quarter. The H2 FY2021 looks positive for the company.
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