Moneycontrol Bureau
Sun TV Network's July-September quarter earnings matched analysts' expectations on all parameters barring operating profit margin on Wednesday. Profit shot up 41.4 percent year-on-year to Rs 218.4 crore due to no IPL franchise fees and lower depreciation during the quarter. Profit growth was limited due to higher tax cost
Revenue increased 11.6 percent to Rs 568 crore in quarter ended September 2015 compared to Rs 509 crore in year-ago period, the television broadcaster said. Advertising revenue grew by 15.8 percent to Rs 301.4 crore led by increase in advertising spend by FMCG and e-commerce players.
Pay channel revenue climbed 16.5 percent to Rs 57.6 crore and subscription revenue rose by 10 percent to Rs 197.4 crore compared to same quarter last year.
Operating profit (earnings before interest, tax, depreciation and amortisation) was up 9.3 percent year-on-year to Rs 432.23 crore. Margin contracted by 170 basis points on yearly basis to 76 percent but sequentially it has seen substantial increase of 1680 basis points due to no IPL cost.
According to analysts polled by CNBC-TV18, profit was estimated at Rs 209.7 crore on revenue of Rs 567.2 crore for the quarter. Operating profit was expected to be at Rs 436 crore with margin at 77 percent in same period.
Depreciation and amortisation cost during the quarter declined 36.4 percent to Rs 117.6 crore while tax expenses jumped 49.4 percent to Rs 116.55 crore compared to year-ago period. At 11:55 hours IST, the scrip of Sun TV Network was quoting at Rs 383, down Rs 2.35, or 0.61 percent on the BSE.
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