Sun TV Network Q3 PAT seen down 13.4% at Rs 195 cr

Revenues are expected to fall 21% to Rs 472 crore from Rs 598 crore year-on-year. EBITDA too is seen falling 24.5% to Rs 379 crore from Rs 502 crore YoY.

Operating profit margin is expected to be at 80.3% in the December ended quarter of FY12 versus 83.9% in the corresponding quarter of last fiscal and 81% in previous quarter.

On quarter-on-quarter basis, revenues are seen going up by 4.6% and profit after tax is likely to go up 8.3%.

Watch out for:

- YoY numbers will look lower because company launched Endhiran last quarter – hence bump up

- Advertisement growth could be subdued – last quarter company's advertisement grew 2.2% YoY only to Rs 235 crore due to environment

- Company had guided for 6 channel launches in FY12 – which is expected to add to advertising revenue

- Subscription revenue is the most important to watch out for due to impact of launch Aarasu cable

- In Q2FY12 , sub revenue +1.6% YoY to Rs 126 crore but fell 10% QoQ with analogue down by 13% YoY and 16% QoQ to Rs 47 crore on account of Arasu cable

- Aarasu began operations on September 2nd - providing free cable in Tamil Nadu

- DTH grew 13% to Rs 79 crore (there is a 30% entertainment tax levied by the state on DTH operators)