Sun TV reports mixed bag Q2FY22 performanceSUNTV - 674 Change: -0.65 (-0.10 %)
News: Sun TV’s Q2FY22 was a mixed bag. While ad growth was much ahead of estimates, subscription revenues declined and offset the same. Total revenue at Rs.829 crore, up 9.6% YoY, with advertisement revenues at Rs.341.8 crore (up 39.8% YoY on a benign base of ~27.4% decline), much better than expectations of ~22% YoY growth. Our back of the envelope calculation shows subscription revenues declined by ~4-5% YoY vs. ~3% YoY growth expectations. EBITDA came in at Rs.520.6 crore with EBITDA margins at 62.8%, down 357 bps YoY.
Views: Gradual recovery in market share is likely ahead due to fresh programming in southern market (which includes couple of big ticket shows) providing tailwinds for advertisement revenue ahead, which was also visible partially this quarter. Subscription revenues decline, however, needs to monitored amid NTO 2 implementation.