Sun TV Q3 net jumps 11% on the back of double-digit ad, subs rev growth
MUMBAI: Sun TV Network’s net profit has jumped 11% at Rs 266.97 crore for the quarter ended 31 December compared to Rs 240.1 crore in the corresponding quarter of the previous fiscal.
EBITDA for the quarter was up 12% at Rs 492.04 crore compared to Rs 439.6 crore a year ago.
Revenue from operations was up 16% at Rs 683.28 crore compared to Rs 589.4 crore. The total income for the quarter was higher by 13% at Rs 712.39 crore as against Rs 628.36 crore. Expenses jumped to Rs 305.7 crore from Rs 261 crore.
Ad revenue, which increased 22%, was not disclosed. Subscription revenue jumped 16% at Rs 281.81 crore as against Rs 241.94 crore.
At the Board Meeting held today, the company has declared an interim dividend of Rs 2.50 per share (50 %) on a face value of Rs 5 per share.
As reported by TelevisionPost.com earlier, Sun TV Network is expecting its subscription revenue to double to Rs 2000 crore over the next three years due to the growth in direct to home (DTH) subscriber base and digitisation in Tamil Nadu. In FY17, the broadcaster had subscription revenue of roughly Rs 1000+ crore.
Sun TV is also exploring Bengali and Marathi markets as part of its plans to expand its footprint outside South. Expanding outside South has been on the company’s agenda for a long time.
It is also open to launching a second GEC in the Tamil market. Star India has two GECs in Tamil Nadu namely Star Vijay and Vijay Super. Sun TV is also working towards having an equal share of sponsored and commissioned programming in the Tamil market.
Sun TV Network operates satellite TV channels across four languages of Tamil, Telugu, Kannada, and Malayalam, airs FM radio stations across India and owns the Indian Premier League (IPL) franchise Sun Risers Hyderabad.