InvestorQ : How do you see the Sun TV stock after the latest results for Jun-20 quarter?
Aashna Tripathi made post

How do you see the Sun TV stock after the latest results for Jun-20 quarter?

Aditi Sharma answered.
9 months ago

Sun TV reported net profits of Rs.257.41 crore for the Jun-20 quarter, sharply lower than the net profit of Rs.386.61 crore reported in the Jun-19 quarter. Total income of Sun TV for the Jun-20 was down nearly 40% at Rs.714.71 crore due to the prolonged impact of the lockdown.

The good news was that the subscription revenues of the channel for the Jun-20 quarter was up by 18% at Rs.442.25. at an operating level, the EBITDA profit came down sharply to Rs.416.49 crore. Revenues had managed to touch about 75% of pre-COVID levels.

The company has said that its capital investment plans will largely predicate on when the theatres and the multiplexes are allowed to open. Sun is also planning to invest Rs.100 crore in exclusive content for its OTT platform Sun NXT.

Sun will focus on investing in the content business which showed good traction this quarter. According to Sun TV, there was substantial headroom to raise prices in the subscription business. Sun TV was also looking to list Sun Risers Hyderabad in the stock market.

Sun TV reported nearly 20% fall in advertisement revenues in the first quartet of the fiscal. TV viewership for SUN in Tamil Nadu has continued to inch up to 45% in last few weeks, with the positive being a 400 bps growth in market share over sequential quarter.

Sun TV has incorporated Rs.250 crore for revenues and Rs.90 crore for EBITDA in the fiscal year 2020-21. Sun has raised the revenue target by 9% for the coming year and EBITDA by 6% for the fiscal year 2021.