Persistent weakness in advertising revenue, challenging outlook may drag company's earnings
Rs 250 crore will be spent on its Sun NXT initiative, sizeable investments would go toward Bengali and Marathi, which are potentially larger markets than Malayalam
The Sun TV stock ended 0.71 per cent down, at Rs 549 per share, on BSE on February 8
Commenting on the advertisement market, the company said that in October advertisement revenue recovered to over 80 per cent of pre-Covid levels
The promoters had decided to keep their salaries at the current level three years ago.
Further uptick depends on recovery in advertising rates
The media conglomerate said that revenues are close to 75 per cent of the pre-COVID levels
Speaking to investors, S L Narayanan, Group CFO, Sun TV Network said, capex depends on how quickly the theaters restart
40% drop in revenue, largely due to absence of IPL and movie distribution
The Sun TV channel has seen its gross rating points (GRPs) rise to 1,600 in the Pongal festival in January, from less than 1,000 in June 2019
Once the banking stocks start chipping in, the Nifty is likely to reclaim 12,220 - 12,300 in coming weeks
Investors should await ad revenue growth revival before tuning in
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Subscription revenue up 17% at Rs 397 cr, EBITDA for quarter at Rs 469 crore as against Rs 554 crore a year ago
The company also said that it used to have Rs 400-500 crore for purchase of movies for its television channels but now it is reallocating some of the budget to movie production
Expects market slowdown to impact advertisement revenue
The launch is expected to help Sun TV Network Ltd ring-fence itself from recent forays by rivals such as Zee, Star and Colors
Gains from IPL and digitisation in tier-III, -IV cities to be much higher
To offer 4,000 movies, live streaming of over 40 channels, and catch-up TV in 4 Indian languages
Revenue rose to Rs 582 cr from Rs 564 cr a year ago