Paytm share price gained more than 5% after the fintech giant announced that it is selling its entertainment and ticketing business to food delivery app Zomato for ₹2,048 crore. Paytm shares jumped to ₹604.45 while Zomato gained 2.71% to reach ₹267.00 apiece on the BSE. As per the agreement, One 97 Communications, parent company of Paytm, entered into definitive agreements for the sale of its entertainment ticketing business that includes movies, sports and events ticketing to Zomato for ₹2,048 crore.
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Paytm’s movie and event tickets will continue to be available on its app during a transition period for the next 12 months after which the users will be redirected to Zomato’s upcoming app for the ‘going- out’ segment.
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Following the deal, Emkay Global Financial Services noted, “Post-acquisition, Zomato’s management estimates going-out GOV at over ₹10,000 crore in FY26. Management expects the going-out business to operate near break-even on an adjusted EBITDA basis, while potentially delivering 4-5% adjusted EBITDAM as a % of GOV over the medium-to-long term. Management’s strong execution track record grants confidence that going-out will add further value over the long term."
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It added, “In our view, the deal would shore up Paytm’s cash and cash equivalents, which would possibly be used to scale up rewards/cash-back program to revive its dwindling payment business following the RBI action. The net one-off gains adjusted for the earnings outgo would reduce net loss in FY25E, but hurt future earnings.”
{{/usCountry}}It added, “In our view, the deal would shore up Paytm’s cash and cash equivalents, which would possibly be used to scale up rewards/cash-back program to revive its dwindling payment business following the RBI action. The net one-off gains adjusted for the earnings outgo would reduce net loss in FY25E, but hurt future earnings.”
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