Media company Sun TV on August 11 reported a profit after tax (PAT) of Rs 582.80 crore for the June quarter of the current financial year, up 18.53 percent from the year-ago period.
The company recorded a PAT of Rs 491.68 crore in Q1FY23.
Revenue was up 10.38 percent YoY at Rs 1317.78 crore and earnings before interest, taxes, depreciation, and amortization (EBITDA) were at Rs 786.46 crore, up 2.96 percent from Rs 763.83 crore in the year-ago period.
Sun TV's advertising revenue came in at Rs 339.10 crore, lower than Rs 343.17 crore in the same quarter of the previous fiscal. Its subscription revenue stood at Rs 435.34 crore, up 6 percent from Rs 410.61 crore.
Shares of the company traded lower 0.91 percent at Rs 545.05 on the national Stock Exchange (NSE) at 15:50.
Analysts had expected ad revenue to increase 1.4 percent YoY for Sun TV but it dropped by around a percent. The subscription revenue was higher than analysts' estimate of 2.8 percent YoY growth.
TV industry performance remained muted in the June quarter due to weak ad environment with little respite because of higher subscription revenue, on the back of New Tariff Order (NTO) 3.0 price hike. TV ad revenue was muted due to lower spend by new age and e-commerce firms and muted growth in ad spends by FMCG companies.
Another broadcaster Zee Entertainment also reported 2.6 percent YoY drop in advertising revenue at Rs 901.8 crore.
Zee management said that there were some green shoots in June and July and expect the positive momentum to continue. They are pinning their hopes on the upcoming festive season to see recovery in ad revenues.
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