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Kalanithi Maran-owned Sun TV Network (Sun TV) has reported a 12% increase in net profit during the quarter ended March 31, 2013 at Rs 177.50 crore as compared to Rs 159.03 crore a year ago.
Company's income has increased to Rs 472.67 crore from Rs 427.01 crore, an increase of around 11%. Meanwhile, the company has decided to increase advertisement rates by around 19%.
"Advertisement revenues maintained momentum by growing by 15% during the quarter to Rs 269.40 crore", said the company. DTH subscription revenues rose by 16% quarter-on-quarter.
The company, one of the largest broadcasters from the South, said that the weekday prime time advertisement rates (6 out of 9 half hour slots daily) on flagship channel Sun TV are increased at an average of 19% and consequently, the telecast fees received from producers are also being revised upwards proportionately. The rate hike will come into effect from July 15, 2013, said the company.
The company also said its FM Radio operations reported a turnaround, with revenues increasing by 26% year-on-year and reported profit.
Amit Patil, Research Analyst - Media, Angel Broking said that Sun TV’s top-line performance was better than our estimates. However, on the operating front, margins contracted by 311 basis point y-o-y to 73.7%. The increase in advertisement rates would lead to improvement in OPM going forward, he added.
