Zee Entertainment Q1 Review - Decadal Low Earnings; Merger Key Trigger: Dolat Capital


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Zee Entertainment Enterprises Ltd.’s Q1 FY23 was in-line but on muted expectations. Adjusted earnings were at decadal lows viz. even lower than Covid quarter.

Revenue/ Ebitda/adjusted profit after tax were down 10/down 66/down 76% YoY.

Free cash flow generation continues to be a challenge with persistent rise in investments across linear, digital and movie business with no improvement in market share or financials.

Post the impending Sony-Zee merger the legacy issues of Zee shall subside and growth, traction in digital etc. shall follow as the new board takes over. But, combined go-to-market strategy and merged company financials disclosure would be only post the closure of the transaction which itself shall take six-nine months in our view.

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