Sun TV Network Ltd. expects revenue from subscriptions to aid top line numbers even as the economy is facing a “protracted” slowdown.
“Fortunately, our subscription revenue is on a tear across direct to home, cable and over the top apps,” SL Narayanan, chief financial officer at Sun TV, told BloombergQuint. “However, we have guided a flattish revenue growth on advertising as we are seeing an extremely protracted slowdown.”
Sun TV said it foresees at least 20 percent subscription revenue growth for the ongoing financial year as it plans to close the year with 20 million subscribers for its Sun NXT app from 11 million as of September-end. “Also there will be growth in terms of net profit margin due to the corporate tax cuts.”
Shares of the Chennai-based media conglomerate declined 1.2 percent to Rs 491.65 apiece.
Q2 Results (YoY)
- Revenue up 5.9 percent to Rs 825.5 crore.
- Net profit up 1.1 percent to Rs 368.7 crore.
- Ebitda declined 15.2 percent to Rs 479.3 crore.
- Operating margin at 58.1 percent versus 72.5 percent.
- Subscription revenue rose 17 percent.
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