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News: Overall revenues came in at Rs 2111.2 crore, up 6.7% YoY (our estimates: Rs 2095 crore). The ad revenues declined 15.6% YoY to Rs 1064 crore, much lower than Sun TV’s flat growth. The company’s overall network share dropped 20 bps QoQ to 16.2%. We highlight that ad revenues are lower owing to weak ad spending by key segment (FMCG), sport heavy quarter and impact of exit from free to air. EBITDA came in at Rs 338 crore, decline of 18% YoY basis and up 35% QoQ, with margins at 16% (down 482 bps YoY, up 243 bps QoQ). The company reported PAT of Rs 24.3 crore, as it provided for one-time exceptional items of Rs 169. Adjusted PAT, was at Rs 193 crore, was largely in line
Views: Going ahead, market share recovery in Marathi/Tamil along with flagship Hindi channels where relative performance has been muted, will be the main thing to watch. We expect gradual ad recovery from FY24, while likely merger consummation, remain key triggers (NCLT meeting on February 14, 2023)
Impact: Negative