Zee Media Corporation Stock Soars 4.96% Amid Strategic Investment and Digital Growth, Despite Rising Losses

Zee Media Corporation Limited (ZMCL) experienced a significant surge in its stock price, rising by 4.96% to reach ₹20.10 per share. This uptick follows a period when the stock was trading around ₹19 and marks a remarkable recovery from its three-month lows of approximately ₹10. The company’s promoters demonstrated renewed confidence by purchasing 2,197,375 shares in June 2024, increasing their stake from 0.07% as of March 2024 to 0.42%.

In its recently published financial report for the quarter ended September 2024, ZMCL reported an expanded consolidated net loss of ₹49.86 crore, compared to a loss of ₹30.70 crore during the same period last year. Operational revenue weakened by 13.78%, dropping from ₹151.59 crore to ₹130.70 crore. The company’s consolidated income also fell by 13.43%, totaling ₹133.12 crore, while costs increased by 1.64% year-over-year to ₹199.65 crore.

Despite these challenges, ZMCL’s digital operations have shown strong performance, attracting 1.9 billion page views and 214 million monthly active users across 18 brands launched in 11 languages. According to ComScore data from September 2024, Zee Digital ranked as the third most visited platform in the news and information segment.

Additionally, ZMCL announced a strategic investment of ₹375.22 million in Flutrr Digimate Private Limited, a technology solutions provider in IT-enabled services. This investment will be executed through Zee Akaash News Private Limited, ZMCL’s wholly-owned subsidiary, with the transaction expected to be completed by December 31, 2024, pending regulatory and procedural requirements. This acquisition reflects ZMCL’s commitment to enhancing its technological capabilities and market presence.

Earlier, ZMCL’s board issued 13,33,33,333 warrants at ₹15 each, totaling ₹200 crore. These non-promoter targeted warrants have attracted interest from various foreign institutional investors (FIIs), including UNICO Global Opportunities Fund Limited and AL Maha Investment Fund PCC. The initial subscription requires 25% payment upfront, with the remaining 75% due 18 months after conversion.

Since its inception in 1999, ZMCL has established itself as a significant player in India’s news broadcasting industry. It operates a robust network of 15 news channels (including 3 national, 11 regional, and 1 international) and its news website, Zeenews.com, which serves more than 280 million users in 9 languages. This underscores ZMCL’s dedication to meeting the needs of India’s growing digital news audience.

Disclaimer: This content is for informational purposes only and should not be construed as financial advice. Please conduct your own research or consult a financial advisor before making investment decisions.


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