Kalanithi Maran-run Sun Television Network (Sun TV) to invest over Rs 300 crore, including Sun Pictures investment of around Rs 80 crore, during the current fiscal.
Speaking at the sidelines of company’s Annual General Meeting at Chennai on Monday C Unnikrishnan, chief financial officer, Sun TV said that the company has lined up around Rs 75-80 crore towards purchasing of equipment for Sun TV, another around Rs 80 crore to distribute movies, through Sun Pictures.
On the movie distribution, through company’s arm Sun Pictures, the company said that before September it would release two movies and another 3 or 4 movies in the next nine months.
Another around Rs 150-160 crore will be invested towards acquisition of movie distribution rights.
Meanwhile, the company is planning to launch five more channels during the current fiscal. Earlier the management said that the company has got license to launch a dozen channels and during the current fiscal five or six channels will be launched, focussing mainly on Southern languages, including one kid channel for Malayalam audience.
Currently the network has 20 channels across four south Indian languages of Tamil, Telugu, Kannada and Malayalam.
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While ruling out foray into Hindi general entertainment channel (GEC), the company has said it may look at other other regions, if it’s get a good opportunity.
On the outlook, he said, the company has set a target go increase its advertisement revenue by 12-15 per cent during the current fiscal.
During the quarter ended June 30, 2011 company’s revenue grew by 3.08 per cent to Rs 453.99 crore as against Rs 440.44 crore, mainly driven by revenue through advertisements. It may be noted, the company has increased the advertisement rates by 12 per cent with effect from April 1, 2011.
“Though during the first quarter non-GEC did not do well, in terms of advertisement revenue and pressure were more on those channels, we would continue to launch such channels on this space, it is just taking long time,” said the management.
The company has set a target to increase its overseas business of around 10-12 per cent from around Rs 69 crore during the last fiscal.
Sun TV Network (Sun TV’s) stock price rose by 3.11 per cent on Monday morning at the Bombay Stock Exchange. The stock was trading at Rs 303.30 a share.