Revenue drop partly offset by growth in subscription income: Sun TV Network

Firm says 25% growth in subscription revenues is highly profitable as it doesn't have a high cost of sales apart from commissions; it sees 2020-21 subscription revenue well over double digits

Media tycoon Kalanithi Maran owned-Sun TV has said that the slowdown in ad spend, a high base of movie revenues in the comparable previous period, and loss of IPL revenues have led to an overall drop in revenues and earnings before interest, taxes, depreciation, and amortization (EBITDA). This, however, has been partially offset by strong growth in subscription revenues. Analysts estimate the company's ad revenue to drop by around 20 per cent in FY21E, while subscription revenues would grow at 12 per cent in FY21E.

Sun TV's consolidated revenues were Rs 3,519.85 crore in 2019-20 as against Rs 3,782.54 crore for