Zee Entertainment, Sun TV may underperform on advertising growth worries

Between the two, Sun had better growth rates than Zee in the Sept quarter


So far, large OTT investments have not yielded any meaningful revenue out-performance for Zee

Ram Prasad Sahu
Stocks of broadcasting majors Zee Enter-tainment Enterprises and Sun TV Network  have lost between 7 and 14 per cent from their respective monthly highs.

The July-September quarter (Q2 of FY23) numbers of both companies came in below Street estimates but Sun fared better than Zee. Sun’s advertising revenues remained unchanged as compared to the year-ago period while Zee reported a 7 per cent decline.
Both companies were impacted by the drastic cut in advertising by fast-moving consumer goods (FMCG) firms. This is significant as the consumer sector accounts for 50-60 per cent of the advertising pie in the broadcasting space. Zee also saw a market share loss of 130 basis points (bps) on a sequential basis.

First Published: Nov 18 2022 | 5:12 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com