Sun TV has entered into a distribution pact with Arasu Cable. In an interview to CNBC-TV18, SL Narayanan, group chief financial officer of Sun Group says, all Sun TV channels will be available on Arasu Network.
All the Sun content will be officially available on the entire analog distribution systems across the state.
Sun TV has entered into a distribution pact with Arasu Cable. In an interview to CNBC-TV18, SL Narayanan, group chief financial officer of Sun Group says, all Sun TV channels will be available on Arasu Network. "Now all the Sun content will be officially available on the entire analog distribution systems across the state," he adds.
He further says, the deal will be effective from August 1.
Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee.
Q: Can you confirm that all Sun TV channels will be available on the Arasu Network?
A: That is correct.
Q: What kind of a distribution deal have you struck with Arasu?
A: It took some time for us to conclude the negotiation. I am happy that it ended well. Now all the Sun content will be officially available on the entire analog distribution systems across the state.
Q: What kind of revenue upside from the distribution front does it open up for you?
A: At the moment, I am unable to comment on the exact number. It’s a structured deal. It will start with a certain amount. As we grow, there is an upside which is built into the future.
Q: Can you give us basic details on if there are any kinds of minimum guarantees?
A: No, I am unable since it’s privileged. It’s also very close to our results announcements. I would refrain from any number related discussion at this time. Suffice to say that we are now officially available on the platform which is the largest in the state. That is going to help us in better ratings because there is going to be a better viewership. So, in that sense it augurs well for the company.
Q: Whatever upside on the distribution front you get does it kick in from this quarter onwards?
A: It is effective August 1.
Q: The channel starts appearing on August 1 and so do the revenues?
A: That is right.
Q: Do you see any significant rub-off on advertising revenues, given that you will be available on the bouquet and as you said your ratings might improve?
A: This is a network which has been holding a very dominant share historically. We have gone from strength to strength on the sheer strength of the content. We have had a bit of an aberration in the last few months because we were not available officially on the Arasu platform. Now that deck has been cleared. So in that sense it makes a better case for us.
Q: Is there any kind of official response to all that talks of CBI filing a charge sheet against both the Maran brothers?
A: That is sub-judice. I cannot comment on anything at this time.
Sun TV Network stock price
On July 14, 2014, Sun TV Network closed at Rs 432.85, down Rs 9.4, or 2.13 percent. The 52-week high of the share was Rs 488.00 and the 52-week low was Rs 324.15.
The company's trailing 12-month (TTM) EPS was at Rs 18.19 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 23.8. The latest book value of the company is Rs 91.60 per share. At current value, the price-to-book value of the company is 4.73.
Set email alert for
ADS BY GOOGLE
video of the day
See 8000 Nifty by Dec, bullish energy, cap goods: Religare