BackSun TV Network Q1 profit tops estimates
The Kalanithi Maran-owned company reported a 19% rise in first-quarter profit, boosted by strong growth in ad revenue
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Chennai: Kalanithi Maran-owned Sun TV Network Ltd reported a better-than-expected 19% rise in first-quarter profit, boosted by strong growth in ad revenue.
The news lifted shares of south India’s biggest media group by more than 9% on Friday. The stock had taken a beating in the quarter when the home ministry denied security clearance to 33 television channels run by the company, citing a pending probe against its promoters by the Central Bureau of Investigation and the Enforcement Directorate.
Net profit at the company—which also owns radio stations across India and an Indian Premier League team, the Sunrisers Hyderabad—rose to ₹ 197 crore in the quarter ended 30 June, from ₹ 166 crore a year ago. A Bloomberg survey estimated net profit at ₹ 189.9 crore. Revenue rose 9% to ₹ 691 crore, exceeding the analysts’ average estimate of ₹ 685 crore.
This was the first time in nine quarters that the media group reported double-digit advertisement growth, said a Mumbai-based analyst who did not want to be identified.
Consumer goods companies, which have gained from a fall in crude oil prices, are spending more on advertisements and helping boost revenue of companies such as Sun TV, the analyst added.
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