Zee Entertainment shares jump 10%, NIFTY Media up 3%; all you need to know

The media stocks were outshining the equity benchmark indices on Monday, June 23, led by a rally in Zee Entertainment Enterprises Limited (ZEEL).

The media firm is planning for a breakeven in its digital business Z5 or Zee5 in the current financial year. 

Zee Entertainment intends to have a TV viewership share of 17.5% in the present year, as against the 16.8% share it had in the previous financial year.

The company is creating a significant cash reserve, according to the investor presentation. ‘Zee to create a significant cash reserve in order to compete effectively with the competitor and to act proactively to address any rapid market shift,” it said.

Zee also plans to enhance its digital offerings in a profitable manner both domestically and internationally without going beyond the content ecosystem.

The firm is developing new business verticals to expand its target audience and augment revenue streams. It is also developing a new distribution business model to capture and retain a larger pool of eyeballs. Zee is investing in media tech to enhance the viewership experience.

On June 17, the company’s board approved the “issue of up to 16.95 crore fully convertible warrants for consideration to be received in cash” to Altilis Technologies and Sunbright Mauritius Investments, promoter group entities, on a preferential basis.