Sai Jai
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- 5 Jan 2015
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Zee Entertainment shares rebounded
more than 7 per cent on Thursday,
wiping out the losses the stock
suffered post Q2 earnings
announcement on Wednesday. The
media firm reported a net profit of Rs
246 crore on sales of Rs 1,385 crore in
the July-September quarter.
Wednesday's kneejerk reaction was
attributed to a spike in receivables by
Rs 500 crore year-on-year and
increase in inventory by Rs 200 crore.
However, Zee Entertainment clarified
that the spike in receivables was due
to lenient collection terms on
subscription revenues. The company
expects receivables to be streamlined
by end of this fiscal.
Meanwhile, the spurt in ad revenue in
the September quarter, has led to
increase in bullish bets for Zee
Entertainment. Domestic brokerage
Religare said Zee Entertainment's ad
revenue growth surprised at 35 per
cent year-on-year versus estimates of
25 per cent, pushing up EBITDA
margins by 238 basis points quarter-
on-quarter to 25.6 per cent.
more than 7 per cent on Thursday,
wiping out the losses the stock
suffered post Q2 earnings
announcement on Wednesday. The
media firm reported a net profit of Rs
246 crore on sales of Rs 1,385 crore in
the July-September quarter.
Wednesday's kneejerk reaction was
attributed to a spike in receivables by
Rs 500 crore year-on-year and
increase in inventory by Rs 200 crore.
However, Zee Entertainment clarified
that the spike in receivables was due
to lenient collection terms on
subscription revenues. The company
expects receivables to be streamlined
by end of this fiscal.
Meanwhile, the spurt in ad revenue in
the September quarter, has led to
increase in bullish bets for Zee
Entertainment. Domestic brokerage
Religare said Zee Entertainment's ad
revenue growth surprised at 35 per
cent year-on-year versus estimates of
25 per cent, pushing up EBITDA
margins by 238 basis points quarter-
on-quarter to 25.6 per cent.
