Sun TV FY13 movie acquisition spend to touch Rs 4 bn

MUMBAI: Kalanithi Maran-promoted Sun TV Network Ltd. will invest close to Rs 4 billion towards movie acquisition this fiscal as it seeks to protect its audience ratings share in the southern-language markets.

The leading regional broadcaster has already invested Rs 2 billion in the first half of the year ended 30 September. Sun intends to spend another Rs 800-900 million each in the remaining two quarters.

Sun TV has made a slew of movie acquisitions including Billa II, Naan Ee, Paagan and Thadaiyara Thaakka.

Sun TV, which had a muted fiscal-second quarter advertising revenue growth, is confident that it will achieve double digit growth in the remaining half of the year. For the three months ended 30 September, Sun TV?s ad revenue grew four per cent to Rs 2.4 billion. The major sectors showing ad spending growth are FMCG, mobile handsets and consumer durables while BFSI has shown de-growth.

Sun TV, which had bought the IPL Hyderabad franchise for Rs 4.25 billion till 2017, will have operational loss from this new line of business but would make a small profit from its second year of IPL operations. Analysts estimate the operational loss from the first year of IPL operations to be in the region of Rs 300 million.

In the FM radio business, Sun posted a revenue of Rs 500 million in the first half of the fiscal while net profit stood at Rs 10 million.