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Sun TV Network dips 6% on mixed September quarter results

The stock dipped 6% to Rs 622 on the BSE in early morning trade after the company reported a mixed operating performance in September quarter with a miss on revenue but a beat on margins and profit.

SI Reporter  |  Mumbai 

Photo: Shutterstock
Photo: Shutterstock

Shares of have dipped 6% to Rs 622 per share on the in early morning trade after the company reported a mixed operating performance in September quarter (Q2FY19) with a miss in revenue but a beat in margins and profit.

Broadcasting firm on Friday reported a 23% year-on-year (Y-o-Y) increase in standalone net profit at Rs 3.51 billion for Q2FY19, against Rs 2.85 billion in the same period last year. Revenue grew by 10.9% YoY to Rs 7.50 billion, lower than the average analyst estimates of Rs 7.63 billion. EBITDA (earnings before interest, tax, depreciation and amortization) margin expanded 50bps YoY to 73.9%.

The stock has corrected around 37% thus far in the current calendar year 2018 on the back of concerns over the shift in viewership towards Over-the-Top (OTT) and perceived under-investments in OTT, rising competition in core markets, and pressure on margin with expansion into newer In comparison, the S&P Sensex was up 3% during the period.

Analysts at SBICAP Securities believe strong performance of the IPL franchise, and promoters’ intentions to cap their salary in FY19 at FY18 levels (around Rs1.8 billion) will largely negate any pressure on margins from investment into new and Sun NXT. Steady cash generation, likely higher payout, and strong earnings growth will drive valuation higher.

At 09:58 am; was trading at Rs 624, down 6% on the BSE, as compared to 0.16% decline in the S&P Sensex. A combined 1.69 million equity shares changed hands on the counter on the BSE and so far.


First Published: Mon, November 05 2018. 10:00 IST
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