Zee Entertainment Enterprises’ (ZEE) Q1FY19 revenue and EBITDA came in line, while PAT surpassed estimate. Key positives: (i) 22.3% YoY growth in domestic advertising. With innovations likely to be at a record high in FY19 (HUL’s ad spends jumped 27% YoY in Q1FY19), we expect ad expenses of FMCG players to continue to be high; and (ii) 12.3% YoY spurt in domestic subscription revenue.
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