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Sun TV: Blockbuster ‘Enthiran’ drives growth…
Sun TV reported standalone numbers for Q3FY11, which were above
our expectations primarily on the back of robust revenues from the
movie Enthiran. The company reported a topline of | 598.0 crore (Idirect estimate: | 551.0 crore), recording a growth of 51.4% YoY, driven
by strong ad revenue growth of 16.0% and movie segment revenue of ~
| 151.0 crore against ~ | 34.0 crore in Q3FY10. The company reported
EBITDA margin at 83.9%, improving 481 bps YoY, driven by higher
revenue growth. PAT margin for the quarter stood at 37.7% as against
38.4% in Q3FY10. PAT for the quarter stood at | 225.5 crore improving
from | 151.9 crore in Q3FY10.
ƒ Highlights for the quarter
Sun TV reported handsome revenue growth on the back of robust
revenue realisation from the movie Enthiran. The company earned
revenue of | 179 crore from the movie of which | 151 crore was
booked in this quarter. Sun TV registered ad revenue growth of
16.0% YoY to | 261 crore. Subscription revenues stood at | 123
crore (cable at | 53 crore and DTH at | 70 crore). DTH subscriber
base increased to 6.72 million from 6.55 million in the last quarter.
The company has declared an interim dividend of | 5 per share.
Valuation
The company reported better-than-expected results for Q3FY11, led by
strong ad revenue growth and higher-than-expected realisation from the
movie Enthiran. At | 482, the stock is trading at 26.3x FY11E consolidated
EPS of | 18.4 and 22.8x FY12E EPS of | 21.2. Given the strong
advertisement revenue growth in the regional space, the fundamentals of
the company remain strong. However, valuations looks rich and we do
not expect major upsides from current levels. We have valued the stock at
24x FY12E and arrived at a target price of | 508, implying an upside of 5%
from the CMP. We have upgraded the stock to ADD from REDUCE.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Sun TV: Blockbuster ‘Enthiran’ drives growth…
Sun TV reported standalone numbers for Q3FY11, which were above
our expectations primarily on the back of robust revenues from the
movie Enthiran. The company reported a topline of | 598.0 crore (Idirect estimate: | 551.0 crore), recording a growth of 51.4% YoY, driven
by strong ad revenue growth of 16.0% and movie segment revenue of ~
| 151.0 crore against ~ | 34.0 crore in Q3FY10. The company reported
EBITDA margin at 83.9%, improving 481 bps YoY, driven by higher
revenue growth. PAT margin for the quarter stood at 37.7% as against
38.4% in Q3FY10. PAT for the quarter stood at | 225.5 crore improving
from | 151.9 crore in Q3FY10.
ƒ Highlights for the quarter
Sun TV reported handsome revenue growth on the back of robust
revenue realisation from the movie Enthiran. The company earned
revenue of | 179 crore from the movie of which | 151 crore was
booked in this quarter. Sun TV registered ad revenue growth of
16.0% YoY to | 261 crore. Subscription revenues stood at | 123
crore (cable at | 53 crore and DTH at | 70 crore). DTH subscriber
base increased to 6.72 million from 6.55 million in the last quarter.
The company has declared an interim dividend of | 5 per share.
Valuation
The company reported better-than-expected results for Q3FY11, led by
strong ad revenue growth and higher-than-expected realisation from the
movie Enthiran. At | 482, the stock is trading at 26.3x FY11E consolidated
EPS of | 18.4 and 22.8x FY12E EPS of | 21.2. Given the strong
advertisement revenue growth in the regional space, the fundamentals of
the company remain strong. However, valuations looks rich and we do
not expect major upsides from current levels. We have valued the stock at
24x FY12E and arrived at a target price of | 508, implying an upside of 5%
from the CMP. We have upgraded the stock to ADD from REDUCE.
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