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L o w a d g r o w t h a m i d t a x i n g e n v i r o n m e n t …
Sun TV’s standalone numbers for Q1FY12 were slightly better that our
estimates. The company reported net revenues of | 460.5 crore, growing
3.1% YoY against our expectation of | 439.9 crore on the back of 4.2% ad
revenue growth YoY to ~ | 231 crore. EBITDA for the company stood at |
365.9 crore against our expectation of | 336.6 crore. The EBITDA margin
stood at 80.6% contracting 111 bps YoY but improving 158 bps QoQ.
PAT for the quarter stood at | 187.6 crore against our expectation of |
171.6 crore, growing 9.9% YoY.
ƒ Highlights for the quarter
Sun TV’s standalone revenue grew 3.1% YoY on the back of 4.2%
YoY ad revenue growth to ~ | 231 crore. The broadcasting revenue
grew 10.1% YoY to | 39 crore. The overall subscription revenue
saw growth of 18.6% YoY to | 140.0 crore (cable: | 56 crore, DTH: |
84 crore). With the distribution of two movies in Q1FY12, revenues
stood at | 22 crore.
V a l u a t i o n
Ad revenue growth has been subdued in this quarter but with the launch
of additional channels, we expect it to pick up in FY12 and grow 11.3% in
FY12 and 15.6% in FY13. DTH revenue has shown good growth but is still
below the industry average. We expect the subscriber base for the DTH
segment to reach 8.2 million by the end of FY13.
At the CMP of | 313, the stock is currently trading at 15.5x FY12E EPS of |
20.2 and 13.9x FY13E EPS of | 22.6, against last one year average of 23.1x
one year forward EPS. We have valued the stock at 17x FY13E and arrived
at a target price of | 384, implying an upside of 23%. The current 2G scam
probe coupled with the resigning of Dayanidhi Maran may be an
overhang on the stock. We continue to rate the stock as BUY.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
L o w a d g r o w t h a m i d t a x i n g e n v i r o n m e n t …
Sun TV’s standalone numbers for Q1FY12 were slightly better that our
estimates. The company reported net revenues of | 460.5 crore, growing
3.1% YoY against our expectation of | 439.9 crore on the back of 4.2% ad
revenue growth YoY to ~ | 231 crore. EBITDA for the company stood at |
365.9 crore against our expectation of | 336.6 crore. The EBITDA margin
stood at 80.6% contracting 111 bps YoY but improving 158 bps QoQ.
PAT for the quarter stood at | 187.6 crore against our expectation of |
171.6 crore, growing 9.9% YoY.
ƒ Highlights for the quarter
Sun TV’s standalone revenue grew 3.1% YoY on the back of 4.2%
YoY ad revenue growth to ~ | 231 crore. The broadcasting revenue
grew 10.1% YoY to | 39 crore. The overall subscription revenue
saw growth of 18.6% YoY to | 140.0 crore (cable: | 56 crore, DTH: |
84 crore). With the distribution of two movies in Q1FY12, revenues
stood at | 22 crore.
V a l u a t i o n
Ad revenue growth has been subdued in this quarter but with the launch
of additional channels, we expect it to pick up in FY12 and grow 11.3% in
FY12 and 15.6% in FY13. DTH revenue has shown good growth but is still
below the industry average. We expect the subscriber base for the DTH
segment to reach 8.2 million by the end of FY13.
At the CMP of | 313, the stock is currently trading at 15.5x FY12E EPS of |
20.2 and 13.9x FY13E EPS of | 22.6, against last one year average of 23.1x
one year forward EPS. We have valued the stock at 17x FY13E and arrived
at a target price of | 384, implying an upside of 23%. The current 2G scam
probe coupled with the resigning of Dayanidhi Maran may be an
overhang on the stock. We continue to rate the stock as BUY.
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