Sun TV Q1 Review - Weak Performance, Bleak Outlook: Dolat Capital
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Dolat Capital Report
Sun TV Network Ltd.’s Q1 FY22 was below estimates led by weak advertising (down 35% versus Q1 FY20) and subscription revenue growth (down 8.3/down 5.2% YoY/QoQ).
Profit after tax was in-line led by change in movie amortisation policy (Rs 0.7/0.5 billion benefit at Ebit/adjusted profit after tax).
It is not a great move.
Dividend too was modest Rs 3.75/share (Rs 1.5 billion outgo) versus C&CE of Rs 39 billion.
Sun TV intents to step-up focus on movie production (~Rs 6 billion investment) and non-fiction shows across genres.
It remains committed of acceleration of investments in digital business from future-proofing perspective mostly in FY23 versus FY22 earlier.
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