Sun TV Confident Of Regaining Market Share Amid Rising Competition
Sun TV Network Ltd. is confident of regaining market share after it lost some ground due to pricing and connectivity issues with a state-run distribution company, its Group Chief Financial Officer SL Narayanan said.
“The company has resolved the problems with the cable operator and signed a new contract,” Narayanan told BloombergQuint in a post-earnings interaction. “The re-branding of a channel – Sun Life will also drive market share further,” he added.
Key highlights from the conversation:
On Subscription Revenue
- We do not get much ad revenue from the international market. However, we get subscription revenues.
On OTT platform
- Most customers are switching to over-the-top; we are getting part of the revenue from OTT.
- Sun Nxt (OTT platform) can be accessed globally.
- Have not started making exclusive content yet.
- OTT takes more time to revolve in India.
On Market Share
- We lost market share due to connectivity issues with Tamil Nadu Arasu Cable TV Corporation.
- Expect ratings to recover strongly after re-branding a channel – Sun Life.
- Sun Life will focus more on youth content.
- The first programme of the channel, which is a reality show, is expected to be launched by the first week of September.
- Gradually, there will be a plan to launch about three-and-a-half hours of content everyday.
On TRAI's New Tariff Plans
- Will not be impacted by the new tariff plans.
- We have priced it affordably.
Key earnings highlights (Q1, YoY):
- Revenue up 42.5 percent at Rs 1,120.4 crore.
- Net profit up 62.6 percent at Rs 409.2 crore.
- Earnings before interest, tax, depreciation and amortisation up 63.9 percent at Rs 734.8 crore.
- Ebitda margin at 65.6 percent versus 57 percent.
Shares of Sun TV Network traded lower for the second day. The stock fell as much as 6.2 percent, the most in nearly 27 months to trade at Rs 775.30.
Watch the full interaction here: