Zee Entertainment, Sun TV may underperform on advertising growth worries

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

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.