Zee Entertainment Enterprises Limited Q3 FY22 Results
Zee Entertainment Enterprises Ltd. posted its quarterly earnings report for the Q3 FY22 on February 2, 2022. The company reported a 12.3% quarter on quarter (QoQ) jump in its consolidated profit after tax (PAT) which came in at Rs 298 crore from Rs 266 crore in the previous quarter. On a year on year (YoY) basis, the company’s PAT declined by ~25% from Rs 398 crore in the year ago period. The decline in the net profit YoY is primarily due to a significant decline in the subscription revenue, and other sales & services. The net profit declined on a YoY basis despite the company cutting its expenses by 21% YoY to Rs 1,701 crore from Rs 2,164 crore in the year ago period.
Zee Entertainment’s other services and revenue came in at Rs 61.6 crore against Rs 585 crore in the year ago period, making it a shocking 89% YoY decline. The subscription revenue declined by 6% to Rs 790 crore from Rs 841 crore. On a sequential basis, the subscription revenue jumped by a marginal 0.2% from Rs 788 crore.
The company’s revenue from advertisement jumped 15.7% to Rs 1,260 crore from Rs 1,089 crore in Q2 FY22. On a YoY basis, the ad revenue declined by 3% from Rs 1,302 crore in Q3 FY21.
Hits
- Total income up by ~6% QoQ to Rs 2,130 crore from Rs 2,010 crore in Q2 FY22
- Monthly active users up by 36 million to 101.9 million from 65.9 million in Q3 FY21
- Daily active users up at 9.6 million from 5.4 million in Q3 FY21
- Average watch time per viewer per month in the quarter under review up at 201 minutes from 133 minutes in Q3 FY21
Misses
- Total income down by 22.7% YoY to Rs 2,130 crore from Rs 2,756 crore in Q3 FY21
- Other income down by 44% QoQ, 35% YoY to Rs 17.8 crore in the quarter under review
- Total TV viewership down during the quarter under review due to lower contribution by movies.
Other things to know about Zee Entertainment Ltd.
- COVID cases and lockdown guidelines will have a bearing on Zee Studios’ release plans
- Strong slate of movies across Hindi, Tamil, Telugu, Marathi and Punjabi languages being planned for release in Q4FY22
- Zee Entertainment Enterprises Limited is the largest TV Channel and broadcaster in the country with a market capitalization of Rs 27,000+ crore (as of February 2, 2022)
- The company’s P/E ratio is at 34.77 against the industry average of -19.36 while its P/B ratio is at 2.75 against the industry average of 9.36 (as of February 2, 2022)
- Zee Entertainment Enterprises Limited’s dividend yield is at 0.88% against the industry average of 0.64% (as of February 2, 2022)
- Foreign portfolio investor Invesco Developing Markets Fund holds 17.88% stake in the company and is in a tussle with the company after it called for the removal of the company’s Directors. Meanwhile Axis Bank has threatened to initiate legal action against Director Subhash Chandra and Puneet Goenak over non-payment of a Rs 200 crore loan and is opposing the company’s merger with Sony Pictures Network India.
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RA: Bavadharini KS