Essel Group-owned Zee Entertainment is all set to declare its Q3 results on Tuesday. The stock has lost close to 40 percent in 2019 and is trading at a 50 percent discount to its historical valuations.
The street is expecting a disappointing Q3 for the company even as the industry remains under pressure due to slowdown in the economy, as well as new tariff order related disruptions. Here are the key expectations:
- CNBC-TV18 poll estimates the revenue to decline by 4 percent and operating profit to fall by 21 percent.
- Increase in content cost will have an impact on margins which is likely to fall below the level of 30 percent to about 28 percent.
- Furthermore, ad revenue will continue to remain under pressure. 12-14 fall in growth is expected while subscription revenues likely will inch up by 16-19 percent on higher realisations.
- Any impact related to new amendments to tariff order released by Telecom Regulatory Authority of India (TRAI) will be the key thing to watch out for.