汇丰银行-印度媒体业-zee entertainment：fragmented ott space may prevent margin upside-20170725-hsbc.pdfVIP

25 July 2017   Zee Entertainment (Z IN) EQUITIES MEDIA Fragmented OTT space may prevent margin upside India  1Q FY18 numbers were largely in line with estimates MAINTAIN REDUCE  Digital investments may drag margins more than expected TARGET PRICE (INR) PREVIOUS TARGET (INR)  Maintain Reduce and INR 430 target price 430.00 430.00 SHARE PRICE (INR) UPSIDE/DOWNSIDE Zee 4Q results were largely in line, advertisement revenues were c4% better than our estimates, largely because of the consolidation of recently acquired channels from 551.90 -22.1% Reliance Broadcast Network Ltd (RBNL). Subscription revenues declined 9% y-o-y, (as of 24 Jul 2017) MARKET DATA however adjusted for sports domestic subscription was up 14.5% y-o-y. Management Market cap (INRm) 530,072 Free float 38% suggested ad revenues in month of June were soft owing to the G