The company has reported steady ad revenues as well as increase in DTH subscribers. It has also reported decent net profit and net sales
Sun T V Networks, a south India based media and broadcasting company, has reported Rs472.67 crore net sales for the quarter ended March 2013, up 11% year-on-year (y-o-y) when compared to Rs427.01 crore for the corresponding quarter last year. It reported 6% y-o-y jump in operating profit at Rs348.57 crore. Meanwhile, its net profit increased 11% y-o-y to Rs177.5 crore.
According to the Moneylife database, the latest sales figure growth is better than its three-quarter average y-o-y growth rate of 7%, while operating profit grew at 6% y-o-y which is also higher than the paltry 2% average. The company’s return on net worth and return on capital employed are pegged at 26% and 27% respectively. The company’s market capitalisation is valued at nearly 12 times its operating profit.
Sun TV has maintained its advertising momentum as advertising revenues went up 15% during the quarter ended March 2013, at Rs269.40 crore. Direct-to-home (DTH) subscription revenues were up 16% on a quarter-on-quarter basis and 12% on a y-o-y basis. FM radio operations posted a strong turnaround with revenues increasing by 26% y-o-y.
According to the company, the weekday prime time advertisement rates on its flagship channel, Sun TV, are being increased with effect from 15 July 2013. These are hiked at an average of 19% and consequently the telecasts fees from producers will also be hiked proportionally.
Additionally, Sun TV has issued a notice to the Bombay Stock Exchange (BSE), notifying the exchange of its IPO proceeds, as per clause 43 of the listing agreement. It said, “Against the total projected utilisation of Rs572 crore (net of issue expenses) from the initial public offering (IPO) funds, an amount of Rs355.77 crore has been utilised towards capitalisation of subsidiaries, Rs136.23 crore towards launch of new channels and purchase of new equipment and up-gradation of existing equipment and Rs62.34 crore towards construction of owned corporate office. The balance proceeds from the IPO after meeting IPO expenses, pending utilisation have been invested in fixed deposits with banks.”
The board of directors has recommended a dividend of 40% i.e. Rs2 per equity share of face value Rs5 each. The final dividend claims for 2012 stood at 190%.
The stock is currently quoting at Rs429 on the Bombay Stock Exchange (BSE).
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
