Sun TV (SUNTV, BUY) :RESULT UPDATE: Edelweiss

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Sun TV (SUNTV, BUY)
• The revenues are up 32.6% Y-o-Y to INR 4,248 mn (against our estimate of INR 4,450
mn). The revenues have dipped 3.6% Q-o-Q. Ad revenue growth of 19% YoY in Q2FY11
in spite of a huge base (Q2FY10 ad revenues had grown by 44% Y-o-Y). Broadcast fees
grew 25% Y-o-Y. On the subscription revenue front the international subscription
revenues grew 23% Y-o-Y, DTH revenues grew 75% Y-o-Y and the cable revenues grew
50% YoY (company has just now raised guidance; earlier expectation was INR 1800 mn;
now FY11 likely to be INR 2000 mn; H1 already done 1050 mn). The movie business
grew 367% YoY from a low base (revenues from Indhiran/Robot will flow in Q3FY11)


• EBITDA margins have improved Y-o-Y by 221bps. However they dipped Q-o-Q by 348
bps. Sun TV booked some promotional costs in Q2FY11 for Indhiran/Robot (other costs
jumped up from INR 139 mn to INR 268 mn Q-o-Q).
• The PAT stood at INR 1674 mn (against our estimate of INR 1720 mn) up 28.2% Y-o-Y.
PAT margin for the quarter stood at 39.4%.