- 16 Aug 2022
- ICICIdirect Research
SUN TV POSTS STRONG AD GROWTH
SUNTV - 645 Change: -25.25 (-3.77 %)News: Standalone revenue came in at Rs 1194 crore, up 47.4% YoY. Advertisement revenues came in at Rs 343 crore (up 40.8% YoY). The company also reported IPL revenues of Rs 243 crore. We believe subscription revenue was muted YoY while Sun TV would have also booked box office collection for Beast and OTT licensing fee for earlier during the quarter (Rs 170 crore). EBITDA came in at Rs 764 crore, up 54.3% YoY while EBITDA margins came in at 64%, up 288 bps YoY, largely owing operating leverage. PAT came in at Rs491.7 crore, up 26% YoY, aided by superior operating profit and higher other income of Rs 100.9 crore, up 80% YoY.
View: Superior ad growth was driven strong local retail recovery in Q1. Pushing back of OTT content spending remains a key concern while films content spending will create volatility in earnings. We also do not have management outlook/commentary on content strategy, margins, growth outlook and capital allocation ahead.
Impact: Positive.