An exceptional quarter for broadcaster Sun TV Networks Ltd whose revenues are up sequentially by 45.88 percent for the quarter ended December 2009 to Rs 3.95 billion. EBITDA for the quarter stood at 79 percent at Rs 3.12 billion. Sun TV Network, owned by Kalanithi Maran, runs two dailies, a radio network, TV channels and a DTH division Sun Direct. For more on the group, read MediaNama.
From the total projected utilisation of Rs 57.2 billion from the IPO funds, Rs 3.56 billion was utilised towards capitalisation of subsidiaries, Rs 87.3 million to launch new channels, purchase new equipments and up-gradation of existing equipments. Rs 6.23 billion towards construction of corporate office. The balance from the IPO fund has been invested in fixed deposits with banks.
Sun TV announced that it has floated a wholly owned subsidiary, Sun TV Network Europe Limited to broadcast and distribute its channel in UK and Europe.
Key Corporate Developments In The December Quarter
The company announced that it will restructure its distribution business to focus at penetration of the network’s channels in India and internationally via DTH, IPTV, HITS and MMDS platforms.
The company announced an increase in advertisement rates for its Telegu channel Gemini TV ranging from 6 percent to 16 percent, Kannada channel Udaya TV upto 10 percent and certain programs of Malayalam channel Surya TV upto 5 percent. In November, the company announced that it would increase its advertising rates in its flagship channel Sun TV ranging from 9 percent to 33 percent with effect from 1st January 2010. Rates were also increased for KTV, Sun Music, Sun News, Chutti and Adhitya. Broadcast fees were also increased accordingly.
ENIL-operated Radio Mirchi has reported a doubling of standalone net profits to Rs 107.3 million for the quarter ending December 2009 as compared to Rs 48.61 million reported for the same quarter of the previous year. Total revenues stood at Rs 635.2 million, higher by 5.8% from December 2008 quarter. EBITDA for Radio Mirchi is Rs 211 million for the quarter and EBITDA margins improved from 30.6 percent in December 2008 to 33.2 percent for the quarter ended December 2009. As per the Indian Readership Survey 2009 R2, Radio Mirchi has 41 million listeners in the country.
On a consolidated basis, ENIL reported revenues of Rs 1.1 billion for the quarter December 2009, up 5.8 percent year on year. EBITDA stood at Rs 176 million and net profit at Rs 25 million for the same period.
Times Innovative Media Limited, a subsidiary of ENIL which operates Times OOH has won the court case on advertising rights contract by BEST to Times OOH for a 15 year period for approximately 1300 bus shelters in Mumbai and its suburbs.