Sun TV Q2 net down 16%, misses forecast
Kalanithi Maran-owned Sun TV Network posted a nearly 16% drop in second-quarter net profit, as costs of revenue increased 50%.
By Sanjay Vijayakumar, ET Bureau | Updated:
CHENNAI: Kalanithi Maran-owned Sun TV Network posted a nearly 16% drop in second-quarter net profit, as costs of revenue increased 50%.
The company, which recently bought the bid for the Hyderbad Indian Premier League franchise, posted a net profit of Rs 151.65 crore, down from Rs 180.12 crore in the comparable year-ago period.
It posted total income of Rs 442.95 crore in the July-September quarter, down about 6% from Rs 469.88 crore last year. The company said its advertisement revenue grew 4% to Rs 244.45 crore.
Sun TV's cost of revenue rose 50% to Rs 33.78 crore from Rs 22.50 crore. Its total expenses increased to Rs 218.17 crore from Rs 203.44 crore.
The results missed the profit expectations of at least two analysts. Angel Broking had expected the company to post a profit of Rs 172 crore on sales of Rs 445 crore. While Kotak Securities-Private Client Research expected the company post a net profit of Rs 167 crore on revenue of Rs 439.50 crore. Kotak also expected Sun to post higher single-digit growth in advertising revenue.
Sun's bigger rival Zee had posted a 17% increase in second-quarter profit with a 33.7% jump in advertising revenue.
The company, which recently bought the bid for the Hyderbad Indian Premier League franchise, posted a net profit of Rs 151.65 crore, down from Rs 180.12 crore in the comparable year-ago period.
It posted total income of Rs 442.95 crore in the July-September quarter, down about 6% from Rs 469.88 crore last year. The company said its advertisement revenue grew 4% to Rs 244.45 crore.
Sun TV's cost of revenue rose 50% to Rs 33.78 crore from Rs 22.50 crore. Its total expenses increased to Rs 218.17 crore from Rs 203.44 crore.
The results missed the profit expectations of at least two analysts. Angel Broking had expected the company to post a profit of Rs 172 crore on sales of Rs 445 crore. While Kotak Securities-Private Client Research expected the company post a net profit of Rs 167 crore on revenue of Rs 439.50 crore. Kotak also expected Sun to post higher single-digit growth in advertising revenue.
Sun's bigger rival Zee had posted a 17% increase in second-quarter profit with a 33.7% jump in advertising revenue.
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