Sun TV reports 12.4% dip in Q1 net profits

Company said reduction in revenues was largely an outcome of the fall in cable revenues in Tamil Nadu

Chennai based broadcasting company Sun TV today reported a 12.4% dip in its net profits for the first quarter ending June 30, 2012.

The Kalanithi Maran promoted company reported net profits of Rs 164.31 Crore for the quarter ending June 30, 2012, down from Rs 187.62 crore registered during the same period of last year.

For the fiscal ending March 31, 2012 net profits stood at Rs 694.65 crore, Sun TV said in a filing to the BSE.

Income from operations for the first quarter ending June 30 2012 also slipped to Rs 425.75 crore as against Rs 453.99 crore registered during the same period of last year.

For the year ending March 31, 2012 income from operations stood at Rs 1,757.37 crore.

At the Board of Directors meeting, the company declared a 50% interim dividend of Rs 2.50 per share.

The company said against the total projected utilisation of Rs 572 crore from the Initial Public offering funds, Rs 355.77 crore was utilised towards capitalisation of subsidiaries.

It said Rs 127.12 crore was used towards launch of new channels, purchase of new equipment and upgradation of existing equipment. For construction of the corporate office, Rs 62.34 crore was utilised.

The balance proceeds, after meeting IPO expenses, pending utilisation have been invested in fixed deposits with banks, it said.

Shares of Sun TV stood at Rs 270.20 apiece, down by 0.59% over the previous close in the afternoon BSE.

The company, in a statement, said reduction in revenues was largely an outcome of the fall in cable revenues in Tamil Nadu. However subscription revenue would start increasing from August 1 in view of the agreement executed with State government promoted Arasu Cable TV, it said.

Recently, Sun TV entered into an agreement with the Tamil Nadu Arasu Cable TV Corporation to enable availability of its channels on all cable television distribution system run by Arasu Cable across Tamil Nadu with immediate effect.

During the quarter ending Jun 30 2012,advertisement revenue grew by 3.51% to Rs 242.82 crore as against Rs 234.59 crore for the quarter ending March 31, 2012, the statement added.