Weakness in ad revenues persists; recovery expected to be gradual

Company

11 Mar 2024 | 5 Min Read

Zee Entertainment's 3QFY24 results showed a decline in revenue and EBITDA due to weakness in ad revenues.

The company revised down its EBITDA/PAT estimates for FY25 due to slower recovery in ad revenues.

The merger process with Sony has been called off, and the company's growth plans will be a key monitorable going forward.

The company expects a gradual recovery in ad revenues and improved visibility in subscription revenues with the implementation of NTO 3.0.

Zee5, the company's OTT platform, showed revenue growth and improved cost control.

The company implemented a price increase across its bouquet and expects the investment in the OTT segment to have peaked.

The target price for the stock is INR200/share, and the rating remains neutral.