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Sun TV DTH subscription revenue up 21%; Net profits marginally down: Q1 FY15

For the second quarter running, Sun TV Network Ltd continued to maintain an uptrend in subscription revenues. For the quarter ended June 30, 2014, cable TV revenues increased by 15%, and direct-to-home (DTH) subscription revenues increased by 21% over the corresponding quarter in 2013. In Q4-FY14, a 25% quarter-on-quarter increase in subscription revenue had been reported. However, Q1-FY15 was overall a disappointing quarter for Sun TV. Earnings from its broadcasting business in this quarter was Rs.520.17 crore, as against Rs.503.31 crore in the same quarter last year – an increase of 3%. But it was marginally below the Rs.520.18 crore reported in Q4-FY14 (quarter ended March 31, 2014). If the earnings from SunRisers Hyderabad, the IPL team Sun TV owns, are taken into account the revenue for Q1-FY15 stands at Rs.633.58 crore – an increase of 5% year-on-year. Net profits in Q1-FY15 stands at Rs.194.70 crore, which is below the Rs.197.57 crore net profits reported in the previous quarter. Financials EBITDA during Q1-FY15, including IPL revenue was Rs.367.72 crore and excluding IPL revenue was Rs.411.17 crore; 4% and 7% year-on-year increases respectively. EBITDA in the previous quarter was Rs.400.03 crore (excluding IPL revenue, since IPL is held once a year in April). Profit before Interest, Depreciation &Taxes (PBIDT), including IPL revenue and expenses was Rs.387.42 crore, up 6% year-on-year. Advertising revenue for Q1-FY15 was Rs.280.42 crore. Recent development In March 2014, Sun TV inked deals with YouTube and iTunes to offer content from its TV channels on these platforms on…

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