Strong growth in subscription revenue drives gains for Sun TV in June qtr

Further uptick depends on recovery in advertising rates

The Sun TV Network stock gained 6.4 per cent in trade on Monday after brokerages upgraded it over robust subscription revenue growth in the June quarter. Expectations of a recovery in advertising revenues, traction in the digital segment, and strong cash balance were the other positives.

The immediate trigger was 18 per cent growth in subscription revenues on the back of an uptick in viewership because of the lockdown. The company is confident of achieving double-digit growth in subscription revenue in FY21.

On a sequential basis, subscription revenues could increase as DTH recharge was impacted in some regions. The company indicated original