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Sun TV Network hits 52-week low

The stock dipped 11% in past six trading sessions after reporting 2% yoy decline in net profit at Rs 186 crore for Q3FY14.

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SI Reporter Mumbai
Last Updated : Feb 14 2014 | 12:44 PM IST
Sun TV Network has dipped 3% to Rs 326, extending its nearly 8% fall in past one week, after reporting 2% year-on-year (yoy) decline in net profit at Rs 186 crore for the third quarter ended December 31, 2013 (Q3FY14), due to subdued ad revenues and higher cost of content.

The company engaged in broadcastings and cable TV business had profit of Rs 190 crore in the same quarter year ago.

Sun TV reported subdued 4.6% yoy growth in operational income to Rs 508 crore, primarily on account of 7.2% yoy decline in advertising revenue to Rs 272 crore. However, subscription revenue grew 27% yoy at Rs 167 crore.

Advertising revenue was hit due to transition to new TRAI dispensation which limits ad time to 12 minutes/hour, says analyst at Angel Broking.

The company's EBITDA or operating profit declined by 1% yoy at Rs 372 crore, while margin contracted by 428 basis points yoy to 73%.

The stock opened at Rs 337 and hit a 52-week low of Rs 325 on the BSE. A combined around 530,000 shares changed hands on the counter till noon deals on the BSE and NSE.
 

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First Published: Feb 14 2014 | 12:36 PM IST

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