MUMBAI: Kalanithi Maran-promoted Sun TV Network?s net profit for the third quarter ended 31 December has jumped 13.1 per cent from a year earlier on a healthy growth in advertising revenue.

Sun TV?s net profit in the third quarter was Rs 1.89 billion, up from Rs 1.67 billion a year earlier.

Despite the slowdown in ad spends for the industry due to sluggish economic growth, the Chennai-based media conglomerate saw its advertising revenue grow by 20 per cent to Rs 2.93 billion from Rs 2.44 billion a year earlier.

The company?s operating profit in the third quarter grew 10.32 per cent to Rs 3.76 billion from Rs 3.41 billion a year earlier.

Sun TV?s net revenues in the third quarter increased 14.29 per cent to Rs 4.85 billion from Rs 4.25 billion a year earlier. Its expenses jumped 8 per cent to Rs 2.13 billion from Rs 1.96 billion a year earlier.

Sun TV, which recently acquired Hyderabad franchise of the Indian Premier League (IPL) for Rs 4.25 billion, operates 33 channels across four languages -- Tamil, Telugu, Kannada and Malayalam.

Against the total projected utilisation of Rs 5.72 billion from the IPO funds, an amount of Rs 3.56 billion has been utilised towards capitalisation of subsidiaries, Rs 1.33 billion toward launch of new channel and purchase of new equipments and upgradation of old equipments, and Rs 623.4 million towards construction of owned corporate office.

MUMBAI: Sun TV Network has named its Hyderabad IPL team Sun Risers.

The official logo of the new team will be unveiled in Hyderabad on 20 December.

The company had recently awarded the creative duties of its team to JWT India. The account will be serviced out of the agency?s Chennai office.

JWT will handle the entire launch communication package which includes developing a new identity for the team including jersey colours and a 360 degree multi-media campaign.

Sun had retained 20 players in their initial squad for the 2013 season which included six overseas players. It had spent $5 million on retaining players out of its purse of $7 million.

Sun TV had in October bought the Hyderabad IPL team for Rs 4.25 billion for a period of five years till 2017. From 2018, Sun will own the franchise in perpetuity and will pay 20 per cent of the franchise revenue every year as fee to the BCCI.

The auction was necessitated after the termination of the erstwhile Hyderabad team Deccan Chargers owned by debt-ridden media company Deccan Chronicle.

MUMBAI: Kalanithi Maran-promoted Sun TV Network Ltd. will soon start building the brand of its recently won Hyderabad IPL team. For this exercise, the company has mandated the creative duties to JWT India.

JWT will handle the entire launch communication package for the yet-to-be named Hyderabad IPL franchise. This will include developing a new identity for the team including jersey colours and a 360 degree multi-media campaign.

The account will be serviced out of the agency?s Chennai office.

Sun TV had bought the Hyderabad IPL team for Rs 4.25 billion for a period of five years till 2017. From 2018, Sun will own the franchise in perpetuity and will pay 20 per cent of the franchise revenue every year as fee to the BCCI.

For the record, the Sun Group has its presence in cable and satellite television, FM radio, newsprint and aviation.

JWT Chennai?s recently won the creative business of GRT Jewellers. It also handles accounts of brands like MRF, Univercell, GRT Hotels, Tamilnad Mercantile Bank, TI Cycles and Renuka builders.

MUMBAI: Kalanithi Maran-promoted Sun TV Network Ltd. will invest close to Rs 4 billion towards movie acquisition this fiscal as it seeks to protect its audience ratings share in the southern-language markets.

The leading regional broadcaster has already invested Rs 2 billion in the first half of the year ended 30 September. Sun intends to spend another Rs 800-900 million each in the remaining two quarters.

Sun TV has made a slew of movie acquisitions including Billa II, Naan Ee, Paagan and Thadaiyara Thaakka.

Sun TV, which had a muted fiscal-second quarter advertising revenue growth, is confident that it will achieve double digit growth in the remaining half of the year. For the three months ended 30 September, Sun TV?s ad revenue grew four per cent to Rs 2.4 billion. The major sectors showing ad spending growth are FMCG, mobile handsets and consumer durables while BFSI has shown de-growth.

Sun TV, which had bought the IPL Hyderabad franchise for Rs 4.25 billion till 2017, will have operational loss from this new line of business but would make a small profit from its second year of IPL operations. Analysts estimate the operational loss from the first year of IPL operations to be in the region of Rs 300 million.

In the FM radio business, Sun posted a revenue of Rs 500 million in the first half of the fiscal while net profit stood at Rs 10 million.

MUMBAI: Southern media conglomerate Sun TV Network Ltd. has seen a small fall in revenue, leading its standalone net profit to drop 15.80 per cent to Rs 1.52 billion in the fiscal-second quarter as expenses have grown 7 per cent.

The Kalanithi Maran-owned Sun TV, which recently acquired the Hyderabad IPL team for Rs 4.25 billion, had a net profit of Rs 1.8 billion in the second quarter of last year.

Advertisement revenue stayed muted in a year of slowdown and a fall in audience share by the leading regional broadcaster. Ad income grew 4 per cent to Rs 2.44 billion in the second quarter from Rs 2.35 a year earlier.

The broadcaster?s total income in the second quarter was Rs 4.4 billion, down 5.7% from Rs 4.7 billion a year ago. The company?s Ebitda margin for the quarter stood at 76 per cent.

Its expenses in the second quarter grew 6.88 per cent to Rs 2.18 billion from Rs 2.03 billion a year ago.

Sun had taken a hit in its income in the first quarter due to non-carriage of its channels by the Tamil Nadu government-owned Arasu Cable network.

Sun had said its subscription revenues will start "falling in place" following the conclusion of an agreement with Arasu which saw the cable network carrying its channels beginning 1 August.

On the utilisation of IPO proceeds, the company said against the total projected utilisation of Rs 5.72 billion from the public float, Rs 3.56 billion was utilised towards capitalisation of subsidiaries.

Sun said Rs 1.28 billion was used towards launch of new channels, purchase of new equipment and upgradation of existing equipment. For construction of the corporate office, Rs 623.4 million was utilised.

Sun TV Network operates 32 satellite television channels in four languages -- Tamil, Telugu, Kannada and Malayalam and presently airs 43 FM radio stations across India.

Sun TV?s shares fell 1.43 per cent to close Friday at Rs 327.05 on the BSE.

MUMBAI: The size of the television broadcast industry in southern India is expected to grow to Rs 225.4 billion by 2016 even as programming mix shifts to shorter contemporary fiction shows to attract younger population and greater focus on different genres of non-fiction shows.

The overall television industry size in South India ? comprising Tamil Nadu, Karnataka, Andhra Pradesh and Kerala -- is expected to grow at a compounded annual growth rate (CAGR) of 17 per cent till 2016 from its current estimated size of Rs 122.2 billion, according to a report by consulting firm Deloittee on South India Media and Entertainment Industry.

It said the television industry in southern India is on the cusp of a new age as it leverages every dimension of its vibrant eco-system to create value for all its stakeholders.

Subscription revenue forms a major chunk of income for television broadcasters in south India. The subscription income at Rs 81.4 billion now constitutes about 67 per cent of the total revenues, while advertising at Rs 36.1 billion accounts for 29 per cent. The subscription income is expected to grow to Rs 151.7 billion and advertising revenue to Rs 65.4 billion by 2016.

While content revenue with four per cent share in total revenues is expected to grow from Rs 4.7 billion currently to Rs 8.3 billion.

In South India, Tamil Nadu and Andhra Pradesh have the highest share of TV subscription revenues at Rs 29.4 billion and Rs 26.6 billion respectively. While in Karnataka TV subscription revenue stood at Rs 16.4 billion, it was Rs 9 billion in Kerala.

By 2016, Tamil Nadu‘s subscription market is estimated to reach Rs 54 billion, while that of Andhra Pradesh to Rs 50.6 billion. Karnataka and Kerala are projected to reach Rs 31.2 billion and Rs 15.9 billion respectively.

The entry of state-run Arasu Cable in the distribution space has resulted in a significant change in the dynamics of the Tamil Nadu TV distribution scene, the report noted. With cable services being offered at Rs 70 per month by Arasu Cable, the subscription revenues in the state has witnessed lower growths as compared to other southern states.

"Going forward, as platforms, products and price points stabilise, Tamil nadu is expected to reach growth levels at par with other regioanl markets," the report stated.

Tamil Nadu currently dominates the Rs 36.1 billion television ad revenue market with a 38 per cent share followed by Andhra Pradesh at 26 per cent. Karnataka and Kerala have an identical market share of 18 per cent share each. The break-up of TV ad market is: Tamil Nadu (Rs 13.6 billion), Andhra Pradesh (Rs 9.3 billion), Karnataka (Rs 6.5 billion), and Kerala (Rs 6.7 billion).

The TV ad market in Tamil Nadu is expected to reach Rs 23.5 billion by 2016, while in Andhra Pradesh it is projected to reach Rs 18.3 billion. Karnataka and Kerala are projected to reach Rs 11.8 billion each.

The content revenue in Tamil Nadu is projected to reach Rs 3 billion from Rs 1.7 billion, Andhra Pradesh to Rs 2.3 billion from Rs 1.2 billion, Karnataka and Kerala to Rs 1.5 billion each from Rs 900 million currently.

According to Deloitte, non-fiction shows are steadily gaining prominence among viewers with genres like game shows, business, fitness, cookery, events and devotional programmes gradually carving their own niches.

The content is transcending from long-drawn soaps to shorter contemporary fiction shows that can attract younger audiences.

Non-fiction shows are also gaining traction with local broadcasters trying different formats to capture wide-range of age groups through these shows, the report added. The broadcasters in the south are also looking to invest in new content rather than just acquiring new movies, which has become an expensive proposition.

The report said local broadcasters are tying up with content providers to launch local versions of internationally hit formats. Sun TV signed up with Endemol for Deal ya no deal and Star TV inked a deal with Big Synergy to produce Kaun Banega Crorepati in three languages.

The report also pointed out that successful shows in the south are remade in Hindi language, a trend that is only going to grow stronger in coming days. The remake trend, according to Deloitte, allows broadcasters from south to cut costs and at the same time achieve greater scale and economy.

Kids genre an emerging market in South

The Deloitte report says the kid‘s genre in south is poised to grow with the entry of new players. Early entrants to the genre like Sun TV, which has four kids channels in its bouquet, have reaped benefits having captured majority of the viewers in this segment.

The main player in the industry is Sun TV with four channels - Chutti TV, Kushi TV, Chintu TV, and Kochu TV in Tamil, Telugu, Kannada and Malayalam respectively. Other kids? networks like Disney, Cartoon Network, and Nick are new entrants to the market with the launch of local feed.

Having a potent content supply pipeline from domestic as well as international players will help the genre grow in south.

News broadcasters

The news genre in the south is witnessing a new breed of channels which are also climbing up the viewership ladder due to their unique content offering. Channels like Puthiya Thalaimurai in Tamil, V6 News in Telugu and Public TV in Kannada are among the news channels launched recently.

The report noted that news channels with political leanings are also flourishing across the southern states. These broadcasters are expanding into entertainment genre and print media after tasting success, the report stated.