Name: Zee Entertainment Enterprise Ltd.
Media and Entertainment
Cap: Rs. 19,157.26 Crore
63.85 | Industry P/E: 25.65
0.27 | ROE: 25.56% | ROCE: 34.94%
Holding: 4.77% (As of 30th June 2020)
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.
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
consolidated operating revenue dropped by 34.7% to Rs. 1312 Crore from Rs.
2008.1 crore in the corresponding quarter last year.
declined by 66.7% to Rs. 219.9 Crore from Rs. 659.8 crore in Q1 FY2020.
ad-revenue declined by 67% to Rs. 219.9 crore in Q1 FY21 from Rs. 659.8
Crore in Q1 FY2020.
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.