ZEEL announces its quarterly results, stock trades flat amidst good results
The due diligence is in progress on the proposed merger with Sony Pictures.
The media and entertainment giant Zee Entertainment Enterprises Ltd, popularly called ZEEL, often entertains shareholders and enjoys the buzz. In just the last three months, the stock has appreciated by over 61% on the back of the merger with Sony Pictures Networks India. The company came out with its quarter ended September results on 11 November 2021, after the market hours.
The reported Q2FY22 financials were pretty strong. The consolidated net sales stood at Rs 1,979 crore which witnessed a decent 11.5% growth on a sequential basis, and nearly 15% growth on a YoY basis. It reported EBITDA of Rs 403 crore which too soared by about 21% on a QoQ basis and nearly 37.6% when compared to Q2FY21. The net profit number jumped by 27.4% on a sequential basis to reach the Rs 266 crore mark, which also witnessed steep growth of 185% on a YoY basis.
ZEEL has been the trending company on Dalal Street since it announced its merger with Sony Pictures in September. The stock went from Rs 186 to Rs 310+ on the announcement of the merger between ZEEL and Sony Pictures. However, this merger has led to a heated fight between Invesco and ZEEL. Invesco was looking forward to a strategic merger with Reliance Industries (which owns Network 18), but instead, ZEEL merged with Sony Pictures. Invesco, which is the largest shareholder of ZEEL (17.5%) has filed a request for EGM and demands the removal of current MD and CEO, Punit Goenka, the hearing of which will be announced soon by the Bombay High Court.
Zee Entertainment Enterprises Ltd is a global media and entertainment conglomerate present in television broadcasting, movies, music, live entertainment, etc. It has evolved from being an Indian Television broadcaster to a global content company. It offers 46 domestic channels and provides over 2.4 lakh hours of content. It has the highest market share of 18.4% in India in the broadcasting business.
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