Category: Regional

  • Subs revenue boosts Sun TV earnings

    Subs revenue boosts Sun TV earnings

    BENGALURU: Riding on the high of an increase in subscription revenue, Sun TV Network Ltd (Sun TV) reported improved numbers across all important parameters for the quarter ended 30 September 2017 (Q2 FY 2017-18, current quarter) as compared with the corresponding quarter of the previous year (Q2 FY 2016-17). The company’s subscription revenue for the current quarter increased by 14.3 percent year-on-year (y-o-y) to Rs 2,776.8 million from Rs 2,429.0 million.

    Sun TV reported 5.6 percent increase in consolidated total income during the quarter to Rs 7,131.3 million as compared with Rs 6,754.7 million in Q2 FY 2016-17. Operating revenue rose by 8.1 percent y-o-y to Rs 6,759.0 million from Rs 6,254.9 million. The board of directors of Sun TV has declared a second interim dividend of the year of 50 per cent per equity share of Rs 5.

    During the quarter, the company’s profit after tax improved by 5.3 percent to Rs 2,846.7 million (42.1 percent of operating revenue) as compared with Rs 2,703.5 million (35.5 percent of operating revenue) in Q2 FY 2016-17.

    Sun TV’s earnings before interest, taxes, depreciation, amortisation (EBITDA) during the quarter were Rs 4,960.9 million (73.4 per cent of operating revenue), growth of 6.7 percent as against Rs 4,650.2 million (68.8 percent of operating revenue) in Q2 FY 2016-17.

    Total expenditure during the quarter increased by 7.2 percent to Rs 2,825.6 million (41.8 percent of operating revenue) as compared with Rs 2,636 million (34.6 percent of operating revenue) in the corresponding quarter of the previous year.

    Operating expense in Q2 FY 2017-18 grew by 24.8 percent to Rs 640.8 million (9.5 per cent of operating revenue) from Rs 513.3 million (6.7 per cent of operating revenue) in the corresponding quarter of the previous year.

    Employee benefits expense in during the second quarter increased by 7.7 percent to Rs 773.9 million (11.4 per cent of operating revenue) as against Rs 718.3 million (9.4 per cent of operating revenue) in Q2 FY 2016-17.

    Other expenses in the Q2-18 increased 2.8 percent to Rs 384.3 million (5.7 percent of operating revenue) as compared to Rs 373.1 million (4.9 percent of operating revenue) in the corresponding quarter of the previous year.

  • ZEEL unveils Zee Telugu’s new look

    ZEEL unveils Zee Telugu’s new look

    MUMBAI: Zee Entertainment Enterprises Limited (ZEEL) celebrating its 25-year milestone, has unveiled new logos for its Telugu channels, Zee Telugu and Zee Cinemalu.

    Zee Telugu’s new logo represents the transition that the channel will undergo in the upcoming months with the introduction of never seen before content formats and a blend of fiction and non-fiction shows for Telugu audiences around the world. Zee Cinemalu’s new logo highlights the varied content and movie options that the channel will be airing to establish itself as a leading entertainment destination.

    As the first channel from the Zee bouquet to foray into Southern India, Zee Telugu sets itself apart with its positive narratives which inspire viewers. Furthermore, characters such as Bhoomi from Mutyala Muggu and Samantha from America Ammayi who are aspirational and progressive, yet rooted in traditions and culture, reiterate Zee Telugu’s philosophy of being contemporary while remaining culturally entrenched. Koncham Touchlo Unte Chepta, a celebrity talk show-cum-game show is one such example that has been a first in the Telugu GEC industry.

  • Zee South biz head Prabhakaran says: “Growth trajectory is our focus”

    Zee South biz head Prabhakaran says: “Growth trajectory is our focus”

    Zee Tamil, a Zee Entertainment Enterprises Limited (Zeel) Tamil channel, today unveiled a new brand logo during the launch of the Tamil edition of ZEEL’s homegrown reality musical show – Sa Re Ga Ma Pa. The previous season of the Tamil edition was Sa Re Ga Ma Pa Little Champs, the current edition is for seniors. 

    A new daily weekday fiction show is set for launch tomorrow. Earlier this month the channel had announced two new fiction showsDevathaiyai Kandean and Niram Maaratha Pookal that went on air on 9 October in the 130pm and 2pm time slots.

    The channel has also announced a south Indian films female actor as brand ambassador in Jyothika.  An HD Tamil channel will also be launched on 16 October. Zee Tamil was launched in 2008. Earlier, along with the corporate branding changes across the channels under Zeel, Zee Tamil’s logo also underwent a change.

    Siju Prabhakaran is Zeel cluster head – South Business and executive vice president. He has been associated with the brand for over seventeen years during which he has held several roles and responsibilities. As the cluster head for the South Business, Siju is responsible for Zee Tamil, Zee Kannada, Zee Telugu and Zee Cinemalu. In his current position, he plays a significant role in driving the business growth of the South Cluster by strategizing for the profit and loss in these markets.

    Siju spoke with The Indian Television Group’s Tarachand Wanvari and shared details and thoughts about the new branding, the way forward for Zee Tamil, the audience demographics of Tamil Nadu, etc.. Excerpts of the interaction:

    What is the reason for the brand change?

    Zee Tamil is in the process of a beautiful change. Change is the only constant. Actually, when we took this journey two years back, we saw the growth that Zee Tamil has been witnessing in the last 15 to 16 months. Our consumer study showed that there is a need for change – from a viewer point of view.

    After an extensive consumer exercise and study we at Zee Tamil understood that one of the key challenges for today’s woman in Tamil Nadu is the ever growing need to progress with times and take the leap but also her innate belief in preserving her traditions and values. This becomes even pronounced between different generations, where striking a balance and finding the means to do it becomes her guardrail.

    Building on this consumer sentiment and  with the objective of giving our audiences inspiring sparks that will help them strike the balance between preservation and progress and then thrive in it, the channel has revealed its new brand proposition, “Manadhaal Inaivom, Maatrathai Varaverppom” which translates “let’s bridge hearts, and welcome change”.

    What are the steps that you intend to take during or for the brand refresh process?

    As a part of the brand refresh, we have come up with a brand film – basically a TVC. The new brand logo will be launched on the 15th of October at around 2000 hours, on our flagship show, Sa Re Ga Ma Pa.  The unveiling of the brand logo would take place with the entire family of Zee Tamil artists which would be a part of this. At the same time, the marketing campaign across all platforms will roll out. On the 16th, we are also launching a new show called Sembarathi which will air at 2100 hours. Just last week, we had the launch of 2 afternoon fiction shows in the afternoon band. There is a combination of new content offering and the entire brand campaign. We are also extending an HD channel to our viewers which will be available across all platforms from the 16th of October which is also a part of the brand refresh.

    Please elaborate about the brand refresh marketing campaign. What kind of spends will you make? How many TVCs, hoardings, ads? Who is handling the creatives for the campaign?

    Lowe is our new creative agency. The TVC has been shot by the national award winning director Sudha of the Saala Khadoos fame . Our in-house team has also played a part in the execution. Two TVCs’ of 90 seconds each will be shared on our network – Zee Tamil and other TV and news channels. We have an extensive print and digital and outdoor campaign across Tamil Nadu.

    As I said, the campaign will start on television on the night of 15th October, on our flagship show Sa Re Ga Ma Pa when the unveiling of the logo will take place. On 16th, the outdoors and print will start rolling out. This will be backed by on-ground activities, and the campaign will run for about four to six weeks.

    Through this campaign, we want to have maximum impact. It is not a regular campaign. Since we have a great brand ambassador – we also want to leverage on that. We are backing the brand proposition with great content. The campaign will be a 360 degree one – we plan to use all mediums for the new brand message. I don’t have the details of the exact number of the hoardings, but there will be a number of them across all major cities and towns in Tamil Nadu.
    I can’t share spend numbers, but I assure you that our spends will be substantial – about three to four times more than the amount that we spend on the launch of a regular campaign.

    Could you explain the new logo? What does it mean? You had changed your logo earlier when your corporate branding changed ….

    The entire logo showcases radiance and positive energy and that is where the colours have come from. Each market will have its own unique extension of the main corporate brand – with its regional inspiration. This Zee Tamil change is a part of that whole activity on the channel. When the Zee Corporate logo had changed, of course, Zee Tamil’s logo had also changed.

    What about the HD channel? In an analogue market such as Tamil Nadu?

    Tamil Nadu is a market with a huge DTH penetration, even though it is largely still an analogue market, but DTH has been able to make a good entry into it. As a commitment to adding value to our consumer, HD is a natural fitment. Offering HD with our investment in movies and growth plans, it is a natural extension that we 

    How about advertisers?

    There has been a good increase in the advertising segment. Tamil Nadu is a good market for advertisers. The brand campaign will see a huge value for the advertisers; we are also partnering with a few advertisers on this campaign. The advertiser value proposition is something which is a key focus of the brand campaign.

    You mentioned movies. What are your plans for movie acquisitions in a market such as Tamil Nadu that is driven by films?

    There is a legacy advantage that leaders and first movers in the market have had. But as a group, our commitment to movies across markets is constant. This year – we have acquired rights for Rajanikanth’s 2.0 across markets and Vijay’s Mersal which is a Diwali release.

    Zee Tamil is generally ranked third or fourth with Sun TV topping, followed by KTV and Star Vijay according to BARC data. How has Zee Tamil changed in terms of market viewership with respect to the competition? Star Vijay has seen growth in numbers with Bigg Boss and Kamlahasan…

    Zee Tamil is the fastest growing channel in terms of viewership for the past couple of years. To put it in the proper perspective – Sun obviously is the leading channel. And it leads not only in the Tamil market, but also on an all-India level. KTV only showcases movies – so it does not come under the GEC market for Chennai. So the ranking would be 1 – Sun TV, 2 – Vijay TV, 3- Zee Tamil.

    Around two years ago, Zee Tamil was at a five percent market share. Currently, we are at a 15 percent market share. We have had a tremendous growth. We were at a number two position in the market for almost 30 weeks, beating Star Vijay about five months back. The whole idea behind the campaign is to drive the next level of growth.

    Yes, Bigg Boss has been a great win for Star Vijay because it brought in new audiences that were earlier not present and that also helped its other programs.

    Could you tell us about Tamil audiences in general? Is Tamil Nadu also a youth driven market?

    Tamil Nadu is the largest regional market in the country. This is a market with great TV penetration – about 95 to 96 percent, high literacy rate, great urban and rural divide, a great market for advertisers. There has been a great growth in the market. When we grow, we grow at the expense of somebody else, similarly, the other channels are also growing at the expense of others. But the market is at the cusp of a huge market change. And with all the content initiatives, growth is something on the cards.

    If you look at the classification of the audience, there is definitely a young population which is consuming the television market and the reason for the content initiatives in the non-fiction space is a testimony that young people are interested towards this; the only thing is that they don’t want monotonous content. They want something that is new and of a smaller duration which is reflective all over the nation.

    What are your plans for the future?

    Growth trajectory is our focus. With the campaign, we want to strengthen our position in the market and look at offering something new and up the content offering across all genres including fiction and non-fiction. Digital is something that we are working on for upping our game. Zee Tamil is well connected across all cable and digital platforms. We have our content available on Ozee – which is going to be Z5. We have a good viewership base there, which is something that we are looking to build.

  • With Newsfast acquisition, Asianet may become dominant regional video news destination

    With Newsfast acquisition, Asianet may become dominant regional video news destination

    MUMBAI: Asianet News Network group’s digital news media reach now spans four southern languages and English with the acquisition of Newsfast, a leading Tamil digital news platform.

    With regional being the growth driver for digital news, Newsfast, though a relative newbie in the space, has been a strong challenger to many of Tamil’s established legacy news brands. Claiming over a million unique visitors, that site is recognised for breaking news especially in the context of the recent volatility in Tamil Nadu’s politics.

    A leader in Malayalam and Kannada with www.asianetnews.tv and www.suvarnanews.tv, Asianet News Digital also recently launched www.telugu.asianetnews.tv

    Asianet News Digital chief operating officer Anoop N said “Asianet has been focusing on creating a compelling digital video news platform that addresses the underserved south through its respective local languages and technology innovations in video and content distribution.”

    Renowned TV journalist and Newsfast founder Mathivanan M said: “As a part of Asianet, we will now have access to a wider audience base and a stronger technology platform.”

    Through this acquisition, Asianet News network gets a headstart in the competitive Tamil digital news space. The network now has the ability to leverage the new Tamil news entity to further enhance the content stream in www.newsable.com, its English digital video platform. Newsable recently inducted senior journalist and Firstpost co-founder Lakshmi Chaudhry as an editorial advisor.

    Chaudhry said: “Asianet’s strong brand credibility and presence across the four southern states with strong regional teams and deep regional insights, provides us the edge to source and deliver content like none other.”

    According to a recent industry report, Tamil (language) has the highest internet adoption amongst regional languages and the Tamil audience is also the most engaged on content with over one-third of them accessing news content online and most of them on mobile devices.

    “For brands that work with us, this multi-platform reach across broadcast, print and digital offers a significant opportunity to influence the southern markets,” added Anoop.

    “It allows us to craft digital-first solutions with deep regional relevance, supporting brands that want to look at vernacular markets as the next driver for brand expansion and growth. With the very mature Tamil market now in our scope, the opportunity to disrupt with superior content delivery is significant,” he concluded.

  • Colors Bangla constantly focused on enjoyable yet inspiring content, says Rahul Chakravarti

    Colors Bangla constantly focused on enjoyable yet inspiring content, says Rahul Chakravarti

    MUMBAI: Colors Bangla is returning with another explosive season of Pran Litchi Drink presents Bindass Dance Season 2 powered by Shyam Steel.

    Bindass Dance has scoured every corner of the state and auditioned over 2500 aspiring dancers before handpicking the top 25 contestants. These talented dancers little patakas will get an opportunity to flaunt their skill before a celebrated panel of judges – Sayantika, Raj Chakraborty and Baba Yadav.

    Hosted by Sourav Das, Bindass Dance season 2 will enliven your television screens starting 2 September, 2017, every Saturday and Sunday at 9:00pm.

    Colors Bangla and Colors Odia business head Rahul Chakravarti said, “We are constantly focused on creating content that is not only enjoyable but also inspiring. Presenting a platform for these spunky and spirited kids, we hope to nurture their talent and hone their skills just as professionals.”

    Yadav brings his showmanship to the show. He said, “I have had an incredible time on the show.”

    Sayantika said: “I thoroughly enjoyed being part of the first season, I cannot wait for the journey of Bindass Dance season 2 to begin.”

    Director-producer Raj Chakraborty added, “These kids are a powerhouse of talent and with the right direction, they are proving to be potential superstars.”

    Bringing the house down with his trademark one-liners and punch lines, Sourav Das makes for the perfect host.

  • Saam TV to see programming revamp as new editor joins

    Saam TV to see programming revamp as new editor joins

    MUMBAI: One editor after another is quitting TV9 — for better growth prospects, is the official version. Umesh Kumawat, who had joined TV9 from ABP News, quit within a month and went back to ABP as a senior editor.

    And now, TV9 executive editor Nilesh Khare has finally said goodbye to the channel that was performing almost consistently at No. 3 in the last few weeks in the Marathi news genre in a sweet, positive note to his editorial and production team. On informing him that his staff felt quite demoralised and let-down, he quipped: “They must be sad because I am one of them, unlike the leader sitting in a corner office.” 

    NDTV’s Abhishek Sharma is reportedly stepping into Khare’s shoes.

    Starting his career at Tarun Bharat newspaper after doing his masters in journalism from the Pune University, Khare worked with Zee group as an anchor and then senior correspondent for around six years and special correspondent at ABP News for over nine years before becoming the managing editor of “Jai Maharashtra News”.

    Confirming his exit to Indiantelevision.com after a lot of speculation, Khare, who helped TV9 propel from the fourth position to the third slot among Marathi news channels within 45-50 days of joining, said he would be joining Saam TV as the editor from 1 September.  As to whether he would be moving out with a team of trusted lieutenants, he replied in the negative. “Wherever I go, I create a new team from the existing lot — people with new, different and unique ideas, and not legacy concepts,” he said.

    At Saam TV, he said, his future news plan was to extensively cater to the information needs of youth, women and the farmer community. Khare, who ran a sustained news campaign at TV9 to get farmers their rightful due from the Maharashtra government, said he was keen to join Saam TV under the leadership of the managing director Abhijeet Pawar, who “has a unique vision for the channel — he has a new strategy beyond a 24-hour news channel.” 

    “The Maharashtrian viewers are not fond of sensationalism; they prefer news about people’s and state issues, and matters concerning our day-to-day lives,” he said matter-of-factly.

    Khare did not confirm as to whether he would oversee the digital news at the Saam group. “The digital space is definitely significant and growing — within two years, I believe, approximately 30 per cent viewership would be cornered by the digital players,” Khare opined.

    Without divulging details, Khare said he had a lot of programming plans which would help Saam TV grow from its currently fifth position to dizzy heights in a short span time. On being referred to as a master strategist, the hardcore journalist and ‘field reporter’ for several years was not amused. Offering no comment on the exit of Kumawat in a month, he said that the former had gone back to “our DNA — ABP News.”

    Choosing not to comment on the recent controversial issues in the news space and the overall decline in the news viewership, Khare said he was only a part of the editorial board and not a part of the TV9 management. “I am not a believer of numbers — I primarily believe in quality and credibility of news; numbers are secondary,” he signed off.

    Also Read:

    TV9 Marathi format has changed, says new editor Kumawat

    BARC India suspends three errant channels’ review

  • Asianet News Digital’s suvarnanews.tv claims to have registered 20 times Y-o-Y growth

    Asianet News Digital’s suvarnanews.tv claims to have registered 20 times Y-o-Y growth

    MUMBAI: Asianet News Kannada digital platform www.suvarnanews.tv has reported a phenomenal 20x year-on-year growth. This shows the potential of vernacular in driving the next big wave of digital news growth. As the language with the third highest Internet adoption after Tamil and Hindi, Kannada has emerged as a significant growth opportunity.

    Since its inception early last year, Asianet News Network’s Digital strategy has been focused on consolidating its dominant market leadership with focused digital media penetration in Kerala with www.asianetnews.tv and Karnataka with www.suvarnanews.tv. Its more recent English digital news property www.newsable.com delivers millennial centric hyperlocal video content.

    As it strengthens its Telugu news property http://telugu.asianetnews.tv the network is also establishing a significant foothold in Tamil with an upcoming acquisition.

    The recent KPMG-Google report titled “Indian Languages – Defining India’s Internet” is ground-breaking in many ways. It details on the growth momentum in the Indian language internet user base clocking a healthy 18 per cent CAGR until 2021, over its proportionate growth in English of three per cent. It also talks about how Tamil, Kannada and Telugu will be amongst the most digitally engaged netizenry. With 33 per cent of the Indian language internet users accessing news exclusively online, outnumbering even digital payments, vernacular is clearly becoming the rider of growth in Digital News.

    “Suvarnanews.tv is a one-stop destination for the Kannadiga which combines the video and text news, and entertainment stories. Suvarna News, along with Kannada Prabha, which has a 50-year journalistic legacy serves its audience with hyperlocal video-led content. This significant growth comes on the strength of a well thought through strategy to integrate both the broadcast and print content on digital and provide enhanced user experience and engagement,” says Asianet News Network – digital chief operating officer Anoop N.

    “As a vernacular-video leader in its category the Asianet News digital network promises to deliver top quality content. With 99 per cent of the Indian language internet users accessing news content on mobile devices, we’re also continuously focused on the platform to be mobile friendly both from a format and engagement perspective.

    “The digital news opportunity is a significant opportunity that the vernacular market has been relatively slow in capitalising on,” says Kannada Prabha and Suvarna News editor-in-chief Ravi Hegde. “With suvarnanews.tv, we are focused on securing a first-mover advantage. Building collaboration between TV and digital desks along with a deep focus on vernacular video content was at the core of the strategy. With regional news being the preferred category of digital news, we’ve also sharpened our focus at delivering Karnataka like none other,” he elaborates.

    “Our investments in digital have been focused on building a media tech asset that dominates with its content and video format, and through this, drive market leadership,” adds Asianet News CEO Amit Gupta.

    “It creates another strong platform for brands that work with us to capture and expand their presence and market reach riding the wave of vernacular digital growth.” Contexted with the KPMG-Google report that estimates 82 per cent of Kannadigas having a propensity to respond to an advertisement in the vernacular, it’s no surprise that brands will want to maximize on this opportunity.

  • Bhojpuri GEC Dishum launched, targets 65 mln C&S homes

    MUMBAI: It’s hoping to make a big impact on Indians love for everything Bhojpuri. Mumbai-based Dishum Broadcasting flagged off the free-to-air Bhojpuri TV GEC  Dishum just as India entered its seventy-first year of becoming independent.

    Branded Bhojpuri Dhamaka- Dishum, it is expected to have the majority of its audience in Uttar Pradesh and Bihar and Jharkand, apart from the millions of Biharis/Jharkandis spread all over India and the world.

    The company’s management is working on making Dishum available on major Indian DTH and cable TV platforms such  as Tata Sky, Airtel, Den UP, Siti Maurya, Dash Digital and other local MSOs.  The goal: to reach a cumulative  65 million C&S homes. The international rollout will follow later.

    The channel has a slate of programmes covering both, fiction and non-fiction at different  time slots covering devotional, bhakti, mythological, drama, movies and music.

    Dishum has launched in a cluttered Bhojpuri TV space crowded with the likes of BIG Magic (now owned by Zee), Dabangg, Dhamaal, and movie channels like Oscar Movies Bhojpuri,  Bhojpuri Cinema TV, apart from other DD channels and news services.

    However, the company’s director Vishal Gurnani is undaunted by the competition and is quite focused on pole-vaulting the new launch into the second position amongst Bhojpuri channels in the next six months.

    Says he: “We are here to bridge the void left behind by Mahuaa, and are looking forward to bringing world class content, packaging and production values to the large Bhojpuri audience spread across UP, Bihar, Jharkhand, West Bengal and the migrant Bhojpuri audience across India and the world. We are working with the best production houses and the research agencies to understand the audience better.”

    Observers are of the view that Dishum will have its task cut out. Recently, the Bhojpuri cinema ecosystem saw investments being upped in production of movies.

    “However, the challenge has been in collection at the box office; the theatres simply refuse to pay up for a successful movie,” says a media observer. “While this does not directly affect Dishum, it shows the lack of transparency in that ecosystem. Dishum, being free to air, will have to depend on advertising. And, advertising spends from local brands; not just the national FMCG brands from the likes of Levers, P&G, Patanjali, Dabur etc. The latter will give it loose change in terms of ad spends. However, if it does manage to nurture and collect from local advertisers, it could have a good future.”

    ALSO READ :

    Dishum plans to break even in 3 yrs & a network soon, says Vishal Gurnani

    Dishum Awards hoist Bhojpuri flag in London, to be telecast on 27 Aug

  • Sun TV gets ‘buy’ rating from ICICI & Edelweiss

    MUMBAI: Leading brokerages in India have recommended a ‘buy’ rating for Sun TV, the television channel consistently leading across genres for weeks as per BARC India ratings.

    ICICI Direct has recommended ‘buy’ rating with a target price of Rs 830 in its research report dated 14 August, and Edelweiss too has maintained a ‘buy’ rating with Rs 1,024 target price.

    Revenues came in Rs 7863 million (up 3.4 per cent YoY) versus ICICI’s estimate of Rs 7634 million supported by higher subscription revenues, which grew 15.3 per cent YoY to Rs 2705 million (better than ICICI’s estimate of eight per cent YoY growth).

    Sun TV, ICICI says, continued to disappoint on the advertisement revenue front. Ad revenues declined approximately four per cent YoY to Rs 3260 million EBITDA came in at Rs 4484 million, up 2.7 per cent YoY, better than its estimate of Rs 4206 million supported by lower IPL losses (loss of Rs 220 million versus expected loss of Rs 550 million). Though market share erosion in Sun TV is a concern owing to intense competition from Star Vijay, Edelweiss believed it is temporary as viewership is intact. However, competition from Colors is a key monitorable.

    The near-term competitive pressures, ICICI notes, have led to concerns over the expected full throttle ad recovery. However, it has highlighted that the overall levers such as low base, the upcoming festive season and monetisation of improved rating in non-Tamil markets, would provide healthy visibility of ad growth revival ahead. A faster resolution of Chennai digitisation could also provide strong subscription revenue growth. ICICI rates well Sun TV’s strategy of revamping its content strategy and focussing on superior ad yield.

    Edelweiss notes Sun TV’s main positives of approx 29.7 per cent y-o-y growth in cable subscription supported by catch-up revenue and 9.4 per cent y-o-y jump in DTH subscription and IPL losses were stable at Rs 241 million in FY17, even though it lost the series in FY18. The main negatives, Edelweiss notes, was the 4.1 per cent y-o-y dip in ads base of 3.7 per cent y-o-y decline owning to GST.

    The company guided for 15 per cent y-o-y growth in subscriptions in FY18, led by south markets, ex-Tamil Nadu. With phase-III digitisation on track, Edelweiss estimated 15 per cent / 12.0 per cent y-o-y growth in subscriptions in FY18/FY19.

    Factoring in lower ad growth in Q1FY18, Edelweiss cut FY18E ad growth to 9.0 per cent y-o-y from 11.0 per cent earlier.

    Hit by GST, Sun’s ad revenue fell 4.1 per cent y-o-y. However, Edelweiss expects it to bounce back riding on strong content in H2FY18 following improvement in Telugu and Malayalam ratings.

    Sun’s overall subscription grew 16.1 per cent y-o-y supported by catch-up revenue and upswing in digital revenues. The content cost rose 37.6 per cent y-o-y as Sun TV shifted to commissioned model from the ad slot model. It moved entirely into the commissioned model in all its markets, except Tamil Nadu, 2 out of 18 programmes are on commissioned model.

    Sun TV now expects August and September to report better ad growth as GST impact withers away.

  • Sun TV reports improved Q1-18 numbers, declares 50% interim dividend

    BENGALURU: Sun TV Network Limited (Sun TV) reported improved numbers across all important parameters for the quarter ended 30 June 2017 (Q1-18, current quarter) as compared to the corresponding quarter of the previous year (y-o-y, Q1-17). Sun TV reported 5.2 per cent higher consolidated total income in the current quarter at Rs 8,233.8 million as compared to Rs 7,823.8 million in q1-17. Operating revenue increased 3.4 per cent to Rs 7,863.2 million in Q1`-18 from Rs 7,608.3 million in Q1-17. The board of directors of Sun TV has declared an interim dividend of Rs 2.50 per equity share of face value of Rs 5 each (50 per cent).

    The company says in its earnings release that subscription revenue at Rs 2,705 million was up 15.3 per cent in Q1-18 as against Rs 2,346.8 million in the corresponding quarter of the previous year.

    The company’s profit after tax or PAT in Q1-18 improved 8 per cent to Rs 2,516.4 million (32 per cent of Operating Revenue) as compared to Rs 2,330.6 million (29.8 per cent of Operating Revenue) in Q1-17.

    Sun TV EBIDTA in the current quarter was Rs 4,483.6 million (57 percent of Operating Revenue), 2.7 percent higher as compared to Rs 4,369.9 million (57.4 percent of Operating revenue) in Q1-17.

    Total Expenditure (TE) in the current quarter increased 3.8 per cent to Rs 4,415 million (56.1 per cent of Operating Revenue) as compared to Rs 4,253 million (54.4 per cent of Operating Revenue) in the corresponding quarter of the previous year.

    Operating expense in Q1-18 increased 37.6 per cent to Rs 683.1 million (8.7 per cent of Operating Revenue) from Rs 496.6 million (6.3 per cent of Operating Revenue) in the corresponding quarter of the previous year.

    Employee Benefits Expense in Q1-18 increased 13.5 per cent to Rs 684.2 million (8.7 per cent of Operating Revenue) as compared to Rs 603 million (7.7 per cent of Operating revenue) in Q1-17.

    Other expenses (OE) in the Q1-18 decreased 10.3 per cent to Rs 1,157.5 million (14.7 percent of Operating Revenue) as compared to Rs 1,290 million (16.5 per cent of Operating Revenue) in the corresponding quarter of the previous year.

    IPL Franchisee

    Sun TV has paid franchisee fees for its IPL team Sun Risers Hyderabad (SRH) of Rs 85.48 million in Q1-18 same as in the first quarter of FY-17. The company says that its IPL Franchisee had revenue of Rs 1,431 million in Q1-18, down 0.7 per cent as compared to Rs 1,440.4 million in Q1-17. IPL Franchisee costs in Q1-18 were down 5.9 per cent to Rs 1,655 million as compared to Rs 1,758.4 million in Q1-17.