Result update – Sun TV Network

Sun TV’s performance was muted on the ad front.

• Standalone revenue came in at | 858 crore, down 17% YoY (base quarter was movie heavy). Advertisement revenues was muted at | 380 crore (up 0.5% YoY) amid weak FMCG ad spends and sports heavy quarter, partially offset by resilient regional retail ads. Subscription revenues were also muted YoY (down ~3% YoY), amid New Tariff Order (NTO) 2 implementation driven price hike restrictions.
• EBITDA was at | 574 crore, down 20.6% YoY, while EBITDA margins were at 66.8%, down 300 bps YoY, owing to revenue mix and negative operating leverage.
• PAT came in at | 416.3 crore, down 9% YoY.

 Key triggers for future price performance

•  Overall viewership share improvement, which has dipped in recent times. Recovery in key markets like Tamil/Telugu/Kannada to be ad growth driver.
• . Marked ramp up in SunNXT content, where content spending is lagging.

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