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Sun TV Network Ltd has posted an increase of 11.55% in net profit at Rs 169.16 crore for the quarter ended September 30, 2013, as against Rs 151.65 crore for the same period of last fiscal year. The income from operations has seen a growth of 7.63%, at Rs 466.41 crore for the quarter ended September 30, 2013, compared to Rs 433.34 crore for the corresponding quarter of previous fiscal year.
The company said that its total income registered for the quarter ended September 30, 2013, is Rs 504.21 crore, as against Rs 442.95 crore for the corresponding quarter of last year, with an increase of 13.83%.
During the half year ended September 30, 2014, the company had an income of Rs 103.96 crore from its IPL franchise Sunrisers Hyderabad, and costs of Rs 137.84 crore. The previous quarter ended June 30, 2013 includes income from the IPL franchise was Rs 98.54 crore and the costs were at Rs 129.33 crore. It may be noted that the IPL is a seasonal game.
Amit Patil, Research Analyst – Media, Angel Broking said Sun TV’s top-line and bottom-line performance was lower than our estimates as well as street estimates.
Top-line grew by only 7.6% yoy to Rs 466cr compared to our estimate of Rs 493 crore, primarily on account of 4.5 percent yoy decline in advertising revenue to Rs. 234crore.
Advertising revenue was hit due to transition to new Trai dispensation which limits ad time to 12 minutes/hour.
The management has assured revival in advertising revenue in third quarter and maintained its yearly guidance of 12% growth in advertising revenue for FY13.
