Visit http://indiaer.blogspot.com/ for complete details �� ��
Sun TV Network Ltd
In-line F2Q11 Results; OW
Quick Comment – Impact on our views: We remain
OW on Sun TV since: 1) we feel with its dominant
position in south, it is well-poised to benefit from solid
growth in the regional advertising market; and 2) fastpaced
DTH subscriber additions should aid subscription
revenue growth of 32% over F2010-13, in our view.
What's new: Sun TV announced F2Q11 PAT of
Rs1,675mn, up 28% YoY but down 2% QoQ and 2%
below our estimates. EBIT margin was sequentially
higher at 59% vs. 58% in F1Q11.
Key takeaways from conference call and results
Ad revenue grew 19% YoY and 4% sequentially to
Rs2.3bn. The company sounded positive on ad market
prospects in F2H11 and maintained its guidance of
18-20% growth for F2011.
Broadcast fees grew 14% sequentially due to an
increase in the extent of paid slots due to the good
response of the shows.
Analog cable revenue increased 7% QoQ, and the
company guided for 25-30% growth in F2011 and F2012
due to better collection procedures now in place.
Proceeds from Sun 18 have started flowing in.
DTH subscriber base increased 4% sequentially to
6.5mn while the contribution per sub remained constant.
Other expenditure increased 94% sequentially and 11%
YoY due to one-offs for pre-release advertising of
Endhiran. Proceeds from Endhiran, which was released
on October 1, should be included in F3Q11. Sun TV
expects a higher than 25% ROI on the movie.
No comments:
Post a Comment