Ad revenues, digitisation to drive Sun TV's earnings in next 2 years

Sun TV's shift to a commission-based model from private programming should potentially offer about 20% higher Ebitda

The Sun TV Network stock may have come off its all-time high of Rs 1,077 reached in January this year, but a revival in advertisement revenue growth, coupled with digitisation in Tamil Nadu, points to higher growth rates for the company in the next two years.

According to analysts, given the improving business outlook and promoters, including Kalanithi Maran, managing to clear legal issues, the stock correction could be a good entry point for investors.

Profitable Q3, but below expectations

The company entered into a high-growth phase in the December 2017 quarter (Q3).

Sun TV’s net profit during the reporting