BackSun TV net profit up 2.7% in Q4
The Chennai-based company posted a net profit of Rs202.9 crore in the January-March period
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Chennai: The Sun TV Network Ltd reported a 2.7% rise in net profit in the March quarter compared with a year ago.
The Chennai-based company posted a net profit of ₹ 202.9 crore in the January-March period, compared with ₹ 197.57 in the year-ago quarter.
The net profit, however, fell short of analysts’ expectations. Bloomberg polled three analysts who estimated the net profit to be ₹ 211 crore.
The company’s revenue was up 5.45% for the quarter at ₹ 548.58 crore, from ₹ 520.18 crore last year. The Bloomberg poll had estimated a revenue of ₹ 556.4 crore.
Profit was in line with expectations, said a Mumbai-based analyst, who did not want to be named. The Sun TV management expects ad revenue growth in the current fiscal year to be better than last year. There will be no advertisement rate hikes but the focus will be to increase Sun TV’s share of the advertiser’s wallet, said senior members of the management in a conference call with analysts.
Advertisement and broadcast fee revenues posted an 8% growth, at ₹ 332 crore for the fourth quarter compared with a year ago. Direct-to-home and cable revenues grew 12% each to ₹ 135 crore and ₹ 57 crore, respectively. Subscription revenues were in line with estimates, said the analyst.
For the fiscal year 2014-15, the company’s net profit registered a 2.8% growth to ₹ 737.23 crore from a year ago. It was also below analysts’ expectations of ₹ 746.6 crore. Revenue was up 7% to ₹ 2,243.62 crore from a year ago. Analysts polled by Bloomberg had estimated a revenue of ₹ 2,257.6 crore.
The company had to reverse its revenues from its Indian Premier League team SunRisers Hyderabad. The ₹ 14 crore garnered during the first quarter of 2014-15 had to be reversed as per a revised communication from the Board of Control for Cricket in India, said the Sun TV management during the conference call.
On Friday, Sun TV shares closed at ₹ 378.70 on BSE, down 1.94%, while the benchmark Sensex was up 1.17% at 27,828.44 points.
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