Zee Entertainment Enterprises Ltd. - MediaPro split – No loss to Zee - Emkay

Reco: BUY
CMP: Rs 275
Target Price: Rs 320

- Zee & Star decides to discontinue distribution of their channels through joint venture, MediaPro. This will comply with the recent TRAI directive that disallows aggregator to bundle channels of multiple broadcasters in a bouquet

- Given the strong bouquet offering, we believe that disintegration of MediaPro would not have negative implications on Zee's subscription revenueTrai has recently raised tariff ceiling for the non-addressable cable TV markets by 27.5%, which will have a positive revenue impact on the broadcasters

- Digitization led structural story remains intact for Zee. Retain BUY with target price of Rs320

Source : Equity Bulls

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