Zee Entertainment Enterprises - March 2013 Results Preview - Motilal Oswal

- We expect advertising revenue to grow 12% YoY to INR 5.1b.

- We expect subscription revenue to grow 6% YoY to INR4.26b (4QFY12 subscription revenue included a one-time impact of accounting change related to Media Pro).

- EBITDA margin is expected to improve 600bp YoY but decline 340bp QoQ to 24.4%. QoQ margin would be impacted by higher programming costs, launch expenses for new channels, and higher sports loss.

- Adj PAT is expected to increase 21% YoY to INR1.72b.

- The stock trades at a P/E of 25.2x FY14E and 19.8x FY15E. Neutral.

Source : Equity Bulls

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