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CHENNAI: The Kalanithi Maran-owned Sun TV saw a 3% drop in net profit on lower advertisement revenue. For the quarter ended December 31, the media house's net profit was about Rs 185 crore, when compared to nearly Rs 190 crore during the same period last year.
Compared to the third quarter of 2012-13, Sun TV's ad revenue fell 7%. The quarter-on-quarter growth in ad revenue, however, rose 17% to Rs 274 crore. The fall in ad revenue growth started in the second quarter, despite a near doubling of prime-time ad rates, reacting to which Sun TV eventually put a cap on ad inventories it offers to content partners.
In Q3, Sun TV's content cost went up 56% to Rs 53 crore. "The ad revenues were disappointing, and management commentary about outlook also remains muted," said a Mumbaibased analyst, on condition of anonymity. In comparison, ad revenue for its bigger rival Zee Entertainment Enterprises grew over a third to about Rs 684 crore.
The sequential growth in ad revenues was enabled by the boost provided by the festival season. Corporates devote a bulk of their ad budgets to a season when Navaratri, Diwali and Christmas are celebrated.
Sun TV, which has its media presence in all South Indian languages, saw its subscription revenue from cable and direct-to-home grow at 27% on a year-onyear basis. International subscription revenue grew by 29%. The Sun TV stock closed 0.67% lower on the National Stock Exchange. The results were announced after trading hours.
Low advertisement revenue pulls down Sun TV net by 3% - The Economic Times
..
Compared to the third quarter of 2012-13, Sun TV's ad revenue fell 7%. The quarter-on-quarter growth in ad revenue, however, rose 17% to Rs 274 crore. The fall in ad revenue growth started in the second quarter, despite a near doubling of prime-time ad rates, reacting to which Sun TV eventually put a cap on ad inventories it offers to content partners.
In Q3, Sun TV's content cost went up 56% to Rs 53 crore. "The ad revenues were disappointing, and management commentary about outlook also remains muted," said a Mumbaibased analyst, on condition of anonymity. In comparison, ad revenue for its bigger rival Zee Entertainment Enterprises grew over a third to about Rs 684 crore.
The sequential growth in ad revenues was enabled by the boost provided by the festival season. Corporates devote a bulk of their ad budgets to a season when Navaratri, Diwali and Christmas are celebrated.
Sun TV, which has its media presence in all South Indian languages, saw its subscription revenue from cable and direct-to-home grow at 27% on a year-onyear basis. International subscription revenue grew by 29%. The Sun TV stock closed 0.67% lower on the National Stock Exchange. The results were announced after trading hours.
Low advertisement revenue pulls down Sun TV net by 3% - The Economic Times
..
