Shares of Zee Entertainment jumped nearly 5 percent to Rs 452.7 in the afternoon trades on Wednesday. The company will report second-quarter earnings numbers later in the day.

Here's what to expect from the earnings announcement:

In terms of the topline, which comprises of both ad revenue and subscription revenue growth, ad revenue growth is expected anywhere between 19 percent and 20 percent. At the same time, subscription revenue is seen anywhere between 14 percent and 16 percent.

In absolute terms, the ad revenue growth as well as subscription revenue growth put together should mean a consolidated revenue growth of about 18.5 percent.

In terms of margins, EBITDA is likely to grow pretty much in line with the revenue growth and the margins are likely to be around 31.3 percent mark because the street believes that the incremental EBITDA that they make from incremental ad revenue growth will be invested in Zee5 as well as their OTT content platform.

The management said this year they will invest about 400 basis points of their revenue into Zee5. One basis is one-hundredth of a percentage point.

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First Published:Oct 10, 2018 12:40 PM IST