New TRAI Orders To Aid Subscriptions, Sun TV Says
Sun TV Network Ltd. said the rise in digitalisation and the new Telecom Regulatory Authority of India’s orders would boost the television channel’s subscriptions for at least one-and-a-half years.
“Subscription revenue will continue to be buoyant for at least the next few quarters,” Sun Group’s Chief Financial Officer SL Narayanan told BloombergQuint in a post-earnings conversation, adding that there are still at least “five to six million homes yet to be digitalised.” The new TRAI orders, he said, will also help bring slight improvements.
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Tamil language cable and satellite television channel is banking on digitalisation and the age of smartphones to drive growth in the coming quarters, Narayanan said.
Sun NXT, the company’s over-the-top platform, is now available as an application within the mobile TV apps for three brands and has helped Sun TV garner 1 million subscriptions, he said. “The company is adding 20,000 new subscribers everyday through Sun NXT.”
Sun TV reported strong third quarter earnings on the back of higher advertisement revenue and the release of Telugu movie Sarkar, Narayanan said, adding that the company’s results last year were impacted by the Kerala floods, but the ad revenue had bounced back in the December-ended quarter.
Q3 Result Highlights (YoY)
- Revenue jumped 32 percent to Rs 904.45 crore
- Net profit rose 31.5 percent to Rs 351.33 crore
- Ebitda up 35.5 percent at Rs 667.16 crore
- Margin widened to 73.7 percent, from 72 percent
- Ad revenue grew 12 percent, while subscription revenue jumped 23 percent led by continued digitisation benefits and incremental subscription revenue from Sun NXT