The most intense cricket season in living memory and the just finished Lok Sabha elections will probably have an effect on the June quarter performance of listed GEC broadcasters and movie theater firms. The best cricket season in a quarter and the Lok Sabha elections supporting news channels stealing more wallet share are expected to keep advertising revenues sluggish for GEC broadcasters, according to ICICI Securities. Nonetheless, the domestic benchmark saw that the total advertising expenditures kept rising in a consecutive fashion.
"We believe that starting in Q2FY25E, GEC broadcasters will probably profit from this trend. Elections and cricket had an effect on the movie theater industry as well, which prolonged the content shortage. Notably, smaller films like Mr. and Mrs. Mahi, Munjya, and Srikant performed well in the absence of big budget releases, which should reassure investors concerned about an over reliance on high budget fare. Additionally, PVR Inox should gain from Kalki 2898 AD's good performance and increased content visibility, according to ICICI Securities.
Preview of ZEEL Q1 results | Target cost: Rs 195
Zee Entertainment Enterprises Ltd.: ICICI Securities predicted that ZEE's consolidated revenue would increase 10.6% YoY to Rs 2,190 crore in Q1, driven by a 63% increase in production revenues, a 9.8% YoY growth in subscription revenue at Rs 990 crore, and a generally flat YoY increase in advertisement revenue at Rs 977 crore. ZEE's profitability improvement could come as a positive surprise.
ZEE's EBITDA is predicted to increase by 47% YoY to Rs 227 crore in Q1FY25
"We anticipate a sharp increase in net profit to Rs 77.30 crore (compared to Rs 12.1 crore in Q4FY24)." Our target price of Rs 195 (22.5 times the future P/E multiple for one year) remains unchanged. Hold BUY, according to ICICI Securities.
Preview of Sun TV Q1 earnings | Price target: Rs 1,000
In spite of a difficult quarter, ICICI Securities anticipates that Sun TV's standalone revenue would be unchanged year over year at Rs 1,330 crore. The brokerage company said that Sun TV's subscriber income may increase 3.2% YoY to Rs 448 crore while its ad revenue would likely decrease 2.7% YoY to Rs 330 crore.
"Despite a larger allocation in Q4FY24, we believe that IPL income might increase by 2% YoY to Rs 523 crore as a result of annual escalation and improved team performance. We predict that in Q1FY25, Sun TV's standalone Ebitda would increase marginally (3 percent YoY) to Rs 599 crore, with YoY growth remaining flat at Rs 772 crore. Our target price of Rs 1,000 (17.8x one-year future PE) remains unchanged. Hold BUY, according to ICICI Securities.
Preview of PVR Inox Q1 Results | Goal cost: INR 2,000
ICICI Security notices a significant improvement in content visibility in the instance of PVR Inox, but from H2. It projects that PVR-Inox's combined sales to Rs 1,160 crore might decline by 11% YoY or 7.6% sequentially. The firm predicted that F&B revenue would come in at Rs 392 crore, down 5% QoQ or 8% YoY, while ticket sales income may decline by 10% QoQ or 18% YoY to Rs 568 crore.
"We project that Q1FY25 total occupancy might be as low as 20.5% due to the lackluster run of high-profile Hindi films like "Maidan" and "Chandu Champion." We expect ATP and SPH to mostly stay within the same parameters as Q4FY24. We project a PAT loss of Rs 150 crore and a cash (pre-INDAS) adjusted Ebitda loss of Rs 52.3 crore for Q1FY25. Nevertheless, we continue to aim for the Rs 2,000 pricing point given the marked improvement in the content pipeline's visibility," the statement stated.
