BackSun TV Network posts flat net profit in Q1
The company earned a net profit of Rs165.64 crore compared with a profit of Rs164.44 crore a year earlier
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Chennai: Sun TV Network Ltd on Friday posted a June quarter net profit that was barely changed from a year earlier, as its earnings were crimped by its Indian Premier League (IPL) cricket franchise and subdued growth in advertising revenue.
The broadcaster controlled by Kalanithi Maran earned a net profit of Rs165.64 crore in the three months ended 30 June, compared with a profit of Rs164.44 crore in the year-ago period.
Analysts polled by Bloomberg had estimated a net profit of Rs188.8 crore for the company that also owns IPL franchise Indian Hyderabad Sun Risers. Excluding the franchise, Sun TV Network would have posted a net profit of Rs194.70 crore.
It reported revenue of Rs633.58 crore for the fiscal first quarter, compared with Rs601.85 crore a year earlier.
Subscription revenue maintained an uptrend with cable TV revenue growing by 15% and Direct-to-Home (DTH) television revenue increasing by 21%, the company said.
“Disappointing financial results as advertisement growth has been only marginal while we had anticipated a growth of 7%," said a Mumbai-based analyst who did not want to be named.
Sun TV shares closed at Rs419.95, 0.49% down, as the BSE’s benchmark Sensex ended lower by 1.02% to 25,329.14 points.
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