Zee Entertainment Ltd (ZEEL) was expected to have a dismal Q1FY21 but the actuals were way below most estimates.

The company’s net profit slumped 94% (YoY) to Rs.29 crore on a 35% slump in revenue at Rs.1312 crore. Its mainstay, which is the advertising revenue fell 64% to Rs.421 crore.

Its domestic subscription revenues grew 6% on the back of ZEE5 subscription revenue.

EBITDA fell 85% to Rs.108 crore while the margins dropped sharply from 36% to 8%.

The company said that Subhash Chandra has tendered his resignation, as the non-executive director of the company, which was reluctantly accepted by the board of directors and he will now act as the Chairman Emeritus of the company from August 19.

R Gopalan, additional director at Zee Entertainment has been appointed as the chairman of the board in place of Chandra.

ZEEL also plans to sell 100% equity shares held in four wholly-owned subsidiaries of the Company i.e. Zee Unimedia Limited (ZUL), Zee Digital Convergence Limited (ZDCL), India Webportal Private Limited (IWPL) and Zee Network Distribution Limited (ZNDL) to another wholly-owned subsidiary Company i.e. Essel Vision Productions Limited.

Post the aforesaid transfer, ZUL, ZDCL, IWPL and ZNDL ceased to be direct wholly owned subsidiaries of the ZEEL and will become step-down wholly owned subsidiaries of the company.

The market is looking at any fall in the price as an opportunity to buy. The stock opened marginally lower but from there zoomed over 5% higher to Rs.183 levels. It continues to trade firmly in the green, up some 3% at Rs.179.