Sun TV zooms more than 50 per cent in 8 trading sessions
Sun TV Network (SUNTV) announced its results for the June quarter on July 31st 2015. The company reported a strong growth of 19.10 per cent annual basis in Profit after Tax (PAT), which stood at Rs 197.28 crore in Q1FY16 as against Rs 165.64 crore in Q1FY15. In response to last week's Delhi High Court verdict, which allowed the company to participate in the ongoing auctions for FM radio licences, apart from the strong results the shares of the company surged more than 50 per cent in last eight trading sessions, on Monday (3rd Aug) it touched a day high of Rs 398 in the BSE.
SUNTV is one of the largest television broadcasters in India has reported an increase of 9.08 per cent in total revenue (including IPL revenue of Rs 96.55 crore) to reach Rs 691.09 crore in Q1FY16 from Rs 633.58 crores in Q1FY15. Revenue is increased due to 16 per cent growth in advertising revenue and growth of subscription revenue in cable TV by 13 per cent as well as 9 per cent in Ditect-to-home (DTH) subscription over the same quarter last year.
Its total operating expenditure (including IPL cost of Rs 153.16 crore) also raised by 5.98 per cent from Rs 266.01 crore in Q1FY15 to Rs 281.93 crore in Q1FY16. SUNTV's total expenditure boosted mainly due to a 21.17 per cent increase in operating & manufacturing cost and 19.10 per cent increment in employee cost compared to the same period a year ago. However, the company's IPL cost declined by 2.36 per cent compared to the same quarter last year.
SUNTV's Earnings before interest, tax, depreciation and amortization (EBITDA) boosted by 11.31 per cent to reach Rs 409.16 crore in Q1FY16 on an annual basis and its EBITDA margin expanded by 120 basis points to 59.21 per cent in Q1FY16. The company's profit before tax (PBT) too increased by 21.29 per cent from Rs 247.62 crore in Q1FY15 to reach Rs 300.34 crore in Q1FY16. SUNTV's profit after tax (PAT) margin expanded by 241 basis points to reach 28.55 per cent in Q1FY16.
SUNTV declared an interim dividend of 120 per cent at Board meeting held on April 30 2015, which comes to Rs 6 per share having face value of Rs 5 per share. During the period, the company and one of its subsidiaries, South Asia FM (SAFM) received an order under the Prevention of Money Laundering Act, 2002 from the Enforcement Directorate, Ministry of Finance, provissonally attaching land and building of the company aggregating Rs 266 crores and investments aggregating Rs 21.34 crore of SAFM. The company has filed a Special Leave Petition challenging the said order with the Hon'ble Supreme Court and the management is confident of a favourable outcome.