Zee Ent

Zee Entertainment Enterprises Ltd (ZEEL) is currently the top gainer on the BSE. The stock, intra day rose over 4.5% to Rs.436.75, tantalizingly close to its 52-week high of Rs.440.30.

The market is obviously very thrilled with the company’s Q4FY16 performance where despite the trying times, it has managed to post a good performance. It posted a net profit at Rs.261 crore, up 13% (YoY) on a 13% rise in total income at Rs.1532 crore. Its EBITDA rose by a very healthy 53% at Rs.413 crore and margins showed a smart rise up from 20.1% to 27%. The higher tax outgo, up 38% dented the bottomline a bit.

The good news in Q4 was that its advertising revenue showed a better-than-expected growth of 29% at Rs.864 crore – it added 56% to total revenue in FY16 and subscription revenue rose 16% at Rs.511 crore. Other income though showed a drop of 19% at Rs.46 crore.

For the full year FY16 consolidated revenue stood at Rs 5851 crore. The consolidated operating profit (EBITDA) for the year stood at Rs 1510 crore. PAT for the fiscal was Rs 1029 crore and  EBITDA margin stood at 25.8% and the PAT margin was 17.6%.

The company expects advertising revenue to moderate in FY17 and expects it to grow around 15-16%. The company is doubling its investment in the movie business to Rs.160 crore.