Media Q4 Results Preview - Another Subdued Quarter: ICICI Securities

ICICI Securities Report

We believe the weakness in the media sector will likely persist in Q4 FY24. The quarter ending March is seasonally soft for advertising, but paired with a weak content pipeline too is likely to result in subdued distribution revenues for both Zee Entertainment Enterprises Ltd. and Sun TV Network Ltd.

The movie exhibition business is likely bearing the brunt – Q4 FY24 occupancy can be pegged at ~22.5%. Even average ticket price may ebb sequentially given some of the movies released during the period had promotional offers running to boost footfalls.

We think stock price volatility in the media space is here to stay in the near term. However, given the correction in Zee Entertainment and Sun TV, we think downside risk hereon is limited.

Hence, we upgrade Zee Entertainment to Hold and retain Hold for Sun TV; maintain Buy for PVR-Inox as long-term thesis remains intact despite near-term hurdles.

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