Chennai: The Sun TV Network Ltd reported a 2.7% rise in net profit in the March quarter compared with a year ago.
The Chennai-based company posted a net profit of Rs.202.9 crore in the January-March period, compared with Rs.197.57 in the year-ago quarter.
The company’s revenue was up 5.45% for the quarter at Rs.548.58 crore, from Rs.520.18 crore last year. The Bloomberg poll had estimated a revenue of Rs.556.4 crore.
Profit was in line with expectations, said a Mumbai-based analyst, who did not want to be named. The Sun TV management expects ad revenue growth in the current fiscal year to be better than last year. There will be no advertisement rate hikes but the focus will be to increase Sun TV’s share of the advertiser’s wallet, said senior members of the management in a conference call with analysts.
Advertisement and broadcast fee revenues posted an 8% growth, at Rs.332 crore for the fourth quarter compared with a year ago. Direct-to-home and cable revenues grew 12% each to Rs.135 crore and Rs.57 crore, respectively. Subscription revenues were in line with estimates, said the analyst.
For the fiscal year 2014-15, the company’s net profit registered a 2.8% growth to Rs.737.23 crore from a year ago. It was also below analysts’ expectations of Rs.746.6 crore. Revenue was up 7% to Rs.2,243.62 crore from a year ago. Analysts polled by Bloomberg had estimated a revenue ofRs.2,257.6 crore.
Sun TV Network had to reverse its revenues from its Indian Premier League team Sun Risers Hyderabad. The Rs.14 crore garnered during the first quarter of 2014-15 had to be reversed as per a revised communication from the Board of Control for Cricket in India, said the Sun TV management during the conference call.