)
Kalanithi Maran-owned Sun Television Network (Sun TV)'s stock price went up 11.22 per cent to close at Rs 374.30 on Monday, on the Bombay Stock Exchange.
Earlier in the day, the stock rose as much as 18 per cent, taking the gains in the last eight sessions to 54 per cent. By around 2.15 pm, it was trading at Rs 377 a share, up 12.02 per cent.
This comes in the backdrop of a surge in the company's performance during the first quarter ended June 30. The company published the results on Friday and reported 19 per cent growth in the net profit during the first quarter. Besides, the Delhi High Court's decision to allow one of the group's FM channels, Red FM, in the phase-III auction has helped the stock. The company is also optimistic about the future, especially the upcoming festive season.
However, uncertainty over security clearance to Sun TV's 33 channels continues to worry the group.
Sun TV's first quarter results were announced on Friday. The company has reported 19 per cent increase in the net profit at Rs 197 crore, aided by strong advertising revenue growth. The income from operations increased by nine per cent to Rs 691 crore. Sun TV's advertising revenue increased 16 per cent to Rs 324 crore. The company expects to maintain the growth momentum and expected to see a surge in advertising since the festive season is around the corner.
The company is also planning to invest around Rs 450 crore in 2015-16 for acquisition of movie rights for satellite broadcasts. The media company currently has over 11,000 titles in its library.
