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Chennai: Kalanithi Maran-promoted Sun TV Network Ltd posted flat growth for the June quarter from a year ago owing to the franchise fee it had to pay for the Indian Premier League team it acquired last October.
The Chennai-based media company reported a net profit of Rs164.44 crore for the first quarter, little changed from Rs164.31 crore a year ago, while sales rose 41% to Rs 601.85 crore, it said in a press release.
Analysts polled by Bloomberg had pegged profit at Rs178.50 crore and sales at Rs 471 crore.
Profit and advertising revenue are in line with expectations, said a Mumbai-based analyst who didn’t want to be named. Advertising revenue was up 15 % to Rs279.2 crore from the year earlier.
The management has decided to include the full IPL expense in one quarter rather than phase it over quarters and excluding the fee payment, net profit is up 12%, said another analyst. Expenses are up 84% to Rs365 crore, with the IPL payment at Rs85 crore.
The team, Sunrisers Hyderabad posted revenue of Rs98.54 crore and incurred costs of Rs129.33 crore, thereby making a loss of Rs30.79 in the first quarter.
Subscription revenue continues to maintain a significant uptrend with cable TV revenue growing 38% and direct-to-home (DTH) subscriptions reporting a 20% rise over the same quarter last year, the company said.
Analysts have a positive outlook on the company. The flagship Sun TV Network, which raised advertisement rates on 15 July, will not be hit by the 12-minute-per-hour limit that comes into effect in October.
“We are putting in place strategies which will see a hike in ads rate on all Sun group channels moving forward. Despite the 12-minute ad cap, we expect advertisements revenue to grow by 12%,” S.L Narayanan, chief financial officer of the group, told analysts on a conference call shortly after the financial results were announced.
The Sun TV stock closed at Rs 425.40, up 4.29%, as the benchmark Sensex dropped 0.79% 19,164.02 points.
Sun TV Network posts flat profit after IPL fee - Livemint
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The Chennai-based media company reported a net profit of Rs164.44 crore for the first quarter, little changed from Rs164.31 crore a year ago, while sales rose 41% to Rs 601.85 crore, it said in a press release.
Analysts polled by Bloomberg had pegged profit at Rs178.50 crore and sales at Rs 471 crore.
Profit and advertising revenue are in line with expectations, said a Mumbai-based analyst who didn’t want to be named. Advertising revenue was up 15 % to Rs279.2 crore from the year earlier.
The management has decided to include the full IPL expense in one quarter rather than phase it over quarters and excluding the fee payment, net profit is up 12%, said another analyst. Expenses are up 84% to Rs365 crore, with the IPL payment at Rs85 crore.
The team, Sunrisers Hyderabad posted revenue of Rs98.54 crore and incurred costs of Rs129.33 crore, thereby making a loss of Rs30.79 in the first quarter.
Subscription revenue continues to maintain a significant uptrend with cable TV revenue growing 38% and direct-to-home (DTH) subscriptions reporting a 20% rise over the same quarter last year, the company said.
Analysts have a positive outlook on the company. The flagship Sun TV Network, which raised advertisement rates on 15 July, will not be hit by the 12-minute-per-hour limit that comes into effect in October.
“We are putting in place strategies which will see a hike in ads rate on all Sun group channels moving forward. Despite the 12-minute ad cap, we expect advertisements revenue to grow by 12%,” S.L Narayanan, chief financial officer of the group, told analysts on a conference call shortly after the financial results were announced.
The Sun TV stock closed at Rs 425.40, up 4.29%, as the benchmark Sensex dropped 0.79% 19,164.02 points.
Sun TV Network posts flat profit after IPL fee - Livemint
.
