Sun TV Network Q2 Review - Healthy Recovery In Place; Investments In OTT Hold Key: Motilal Oswal
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Motilal Oswal Report
Sun TV Network Ltd. reported in-line numbers – revenue/profit after tax was up 10%/14% YoY, with ad revenues reaching pre-pandemic (Q2 FY20) levels and delayed benefit from the IPL offering spillover.
This was offset by a sluggish subscription revenue run-rate.
Our FY23E/FY24E estimates are largely maintained; we build in a 6% compound annual growth rate over FY20–23E.
The recent upbeat valuation for the new IPL team auction makes the stock valuation compelling at below 10 times on September 23E.
Along with intensifying content investments to win market share, this is a key positive. However, delayed investments in over-the-top remain a concern for Sun TV.
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