Zee Entertainment Enterprises Ltd (ZEEL) posted 21.76 per cent increase in consolidated net profit at Rs 216.96 crore for the quarter ended June 30, 2016 as compared to net profit of Rs 178.18 crore in the same period of previous fiscal.
Zee Entertainment Enterprises Ltd(ZEEL) shares touched its all time high of Rs 493.65 on Wednesday after its posted a stellar first quarterly results. The company posted 21.76 per cent increase in consolidated net profit at Rs 216.96 crore for the quarter ended June 30, 2016 as compared to net profit of Rs 178.18 crore in the same period of previous fiscal. The company’s revenue stood at Rs 1,571.62 crore in the April-June quarter of this fiscal, up 18.46 per cent, compared to Rs 1,326.68 crore during the same period of 2015-16. Its advertising revenues rose 19.2 per cent at Rs 912 in the reported quarter, while its subscription revenues registered a growth of 14.2 per cent at Rs 528.2 crore. Analysts gave a thumbs up to the first quarterly results of the company and hoped that the momentum will continue.
At 10.26 am, share price of the company was trading 1.94 per cent up at Rs 483.75. The share price of the company touched the high and low of Rs 493.65 and Rs 476.10 respectively, in trade so far. The scrip later settled 2.81 per cent up at Rs 487.90.
According to Reuters, Emkay Global Financial Services has said that sustained market in most regional channels, improvement in flagship channel will continue to drive advertisement growth for the company. It has raised the stocks of price target by 6.3 per cent to Rs 505, while maintaining “buy” rating.
According to a brokerage firm Sharekhan, For the quarter ended June 30, 2016, Zee Entertainment has delivered a strong operating performance. The company continues to outperform the broadcasting advertising industry and expects to continue the momentum, with the ongoing gradual improvement in the macro-economic prospects. Management of Zee Entertainment has indicated that the strong momentum will continue in the ad revenue growth, underpinned by higher investments in content, focus on international markets and market-share gains. Given the positive management commentary on both revenues and margins, Sharekhan has revised upward Zee Entertainment shares estimates for 2016-17 and 2017-18. The brokerage house a ‘Buy’ rating on ZEEL with a target price of Rs 525.