Sun TV Q3 net up 13% to Rs 1.89 bn on ad rev growth

MUMBAI: Kalanithi Maran-promoted Sun TV Network?s net profit for the third quarter ended 31 December has jumped 13.1 per cent from a year earlier on a healthy growth in advertising revenue.

Sun TV?s net profit in the third quarter was Rs 1.89 billion, up from Rs 1.67 billion a year earlier.

Despite the slowdown in ad spends for the industry due to sluggish economic growth, the Chennai-based media conglomerate saw its advertising revenue grow by 20 per cent to Rs 2.93 billion from Rs 2.44 billion a year earlier.

The company?s operating profit in the third quarter grew 10.32 per cent to Rs 3.76 billion from Rs 3.41 billion a year earlier.

Sun TV?s net revenues in the third quarter increased 14.29 per cent to Rs 4.85 billion from Rs 4.25 billion a year earlier. Its expenses jumped 8 per cent to Rs 2.13 billion from Rs 1.96 billion a year earlier.

Sun TV, which recently acquired Hyderabad franchise of the Indian Premier League (IPL) for Rs 4.25 billion, operates 33 channels across four languages -- Tamil, Telugu, Kannada and Malayalam.

Against the total projected utilisation of Rs 5.72 billion from the IPO funds, an amount of Rs 3.56 billion has been utilised towards capitalisation of subsidiaries, Rs 1.33 billion toward launch of new channel and purchase of new equipments and upgradation of old equipments, and Rs 623.4 million towards construction of owned corporate office.