According to the dealers, the shares of Zee Entertainment have secured a smart recovery on Wednesday. The share rose by more than 14% on buying at lower levels coupled with short covering. The stock at 2.39 pm was trading at Rs 111.90, a gain of Rs 13.80 or 14.07%.
Last week the stock had taken a severe beating on the back of poor Q3 results. The October-December net profit of the company fell 26 per cent to Rs 84 crore as against Rs 113.5 crore for the same quarter last year.
According to the Zee Chairman Subash Chandra, "The entertainment and media industry is also seeing the impact of the overall downturn in the global economy. We are in the midst of a downward trend in advertisement revenues."
Moreover, the head of research of a Mumbai based broking firm explained, "The Company has a good standing in the general entertainment space and a substantial growth is likely in its subscription based revenues due to cable digitisation and DTH platforms. Also, its movie channels are likely to provide good earnings over the next few years giving a great value addition to the Zee umbrella on a consolidated basis."
He added, "The Companys December quarter numbers, though, were below expectations with advertising revenues falling 5.9 per cent over the previous quarter, and a marginal growth in subscription revenues. Zee appears to have factored this slowdown, and has indicated a 15 per cent growth in advertising revenues for the full year."
|
