Sun TV operating beat led by higher revenues, margins
News:Revenues came in at Rs.1033 crore, up 6.2% YoY, driven by advertisement revenues growth of 22.5% YoY on a benign base of ~9.5% decline While we await overall topline breakup, we believe that topline beat is also owing to higher movies revenues with super hit movie Annatthe released during the quarter. EBITDA came in at Rs.721.9 crore while EBITDA margins came in at 69.9%, up 123 bps YoY largely owing to operating leverage benefits. PAT came in at Rs.457.4 crore, up 3.5% YoY on account of strong operating performance.
Views: The company’s viewership market share loss in its key market of Tamil Nadu has been a cause for concern. We see a gradual recovery in market share due to fresh programming in southern market providing tailwinds for advertisement revenue ahead which was also visible partially this quarter. Management commentary on growth ahead will be key monitorable.