Homemarket Newsstocks News

Zee Entertainment Earnings Preview: Tangible results of investments yet to be seen

Zee Entertainment Earnings Preview: Tangible results of investments yet to be seen

Zee Entertainment Earnings Preview: Tangible results of investments yet to be seen
Read Time
2 Min(s) Read
Profile image

By Vahishta Unwalla   | Hormaz Fatakia  Nov 11, 2022 7:32:37 AM IST (Published)

Shares of Zee Entertainment have declined 19 percent so far this year.

wealth-desk wealth-desk

Buy / Sell Zee Entertain share

Recommended Articles

View All

Subdued advertising and subscription revenue is likely to result in a tepid quarterly performance from Zee Entertainment for the July-September period. The company reports results on Friday, November 11.
A CNBC-TV18 poll expects revenue to remain flat compared to last year while net profit is likely to halve. Operating performance for the quarter is also expected to be weak.
Advertising revenue for the company is expected to decline on a year-on-year basis. The segment was weak in July and August, but saw decent recovery in September aided by the early onset of the festive season.
Zee Entertainment's subscription revenue may remain flat from last year due to a decline in linear TV subscriptions and the overhang of NTO 2.0 which restrains broadcasters from increasing prices.
According to the New Tariff order (NTO 2.0), the rates of individual TV channels have been capped at Rs 12 from the existing Rs 19. It also stipulates that consumers be allowed to access 200 channels of choice for Rs 130. While the Telecom Regulatory Authority of India has extended the deadline to implement the NTO 2.0 to February 28, 2023, the overhang of the same will keep subscription growth flat for Zee.
The company's viewership share in major markets is likely to decline with higher content costs and advertising and promotional spends will keep a lid on the company's operating margin.
Earlier last month The Competition Commission of India (CCI) on Tuesday approved the amalgamation of Zee Entertainment Enterprises Limited (ZEE) and Bangla Entertainment Private Limited (BEPL) with Culver Max Entertainment Private Limited (CME), formerly known as Sony Pictures Networks India, with certain modifications.
Sony and Zee announced last year that they will integrate their television stations, film assets, and streaming platforms to build a media and entertainment powerhouse with a large base of 1.4 billion viewers.
The CCI stated in a 21-page notice that its initial assessment showed the proposed deal will leave the merged business in a "strong position" with roughly 92 channels in India, citing Sony's global revenue of $86 billion and assets of $211 billion.
Shares of Zee Entertainment have declined 19 percent so far this year.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!