Mumbai: In a climate marked by increasing operational costs and fluctuating revenues, Sun TV Network Limited has reported a modest increase in revenue for the quarter ending 30 September 2024. Despite a 3.26 per cent year-over-year rise in revenue from core operations, which totaled Rs 799.36 crore (excluding movies and sports segments), the company's bottom line tells a more complex story. Net profit after tax decreased by 12.7 per cent from Rs 456.24 crore in Q2 FY24 to Rs 398.17 crore, signalling operational challenges and increased expenses across the board.

The growth in advertisement revenue, a critical component of Sun TV’s revenue, was a highlight. It saw a 2.13 per cent increase, reaching Rs 335.42 crore compared to Rs 328.42 crore in the same period last year. Subscription revenue also improved by 4.43 per cent, totaling Rs 436.75 crore, underlining the network's stable viewer base across its diverse media platforms. This progress reflects Sun TV’s ability to engage its audience across four southern and three northern Indian languages, covering platforms from satellite television to digital OTT services and sports franchises.

Operational costs, however, presented a significant burden, impacting profit margins. Sun TV's operating expenses rose to Rs 219.61 crore, a marked increase from last year’s Rs 170.48 crore for the same quarter. The company reported EBITDA at Rs 528.98 crore, down from Rs 716.21 crore a year earlier, reflecting the broader cost pressures facing the network.

Sun TV's consolidated revenue from operations was Rs 934.54 crore, reflecting a year-over-year decrease from Rs 1,048.45 crore in Q2 FY24. The company also declared an interim dividend of Rs 5 per share, maintaining a consistent return to shareholders amid fluctuating financial performance. Earnings per share (EPS) fell from Rs 11.58 in Q2 FY24 to Rs 10.10 this quarter.

From a cash flow perspective, the company reported a notable reduction in cash from operating activities, which stood at Rs 915.70 crore for the six months ending 30 September 2024, compared to Rs 1,127.56 crore for the same period last year. This contraction in operational cash flow underlines the challenges posed by rising expenses and investment needs.

With the earnings release, Sun TV also disclosed a noteworthy revenue boost from its cricket franchises—Sunrisers Hyderabad and Sunrisers Eastern Cape. The combined income for these sports assets reached Rs 497.14 crore for the half-year period, underscoring the brand's diversified revenue streams. The corresponding franchise expenses amounted to Rs 237.76 crore, a testament to the increasing financial stakes of sports franchise ownership.

Depreciation and amortisation expenses further influenced the financial outcome, rising from Rs 214.34 crore in Q2 FY24 to Rs 191.36 crore this quarter. Meanwhile, finance costs also doubled to Rs 3.20 crore, reflecting additional capital needs.

Sun TV's mixed performance in Q2 FY25 signals both the resilience of its core revenue streams and the challenges posed by rising costs and intense market competition. With a focus on maintaining growth in advertisement and subscription revenues, the network's strategic outlook may pivot towards enhancing cost efficiency, particularly within its sports and digital streaming ventures.

Financial Highlights:

1. Revenue Growth: Sun TV Network's Q2 FY25 revenue (excluding movies and sports) increased by 3.26 per cent year-over-year, reaching Rs 799.36 crore.

2. Advertising Revenue: Advertising revenue rose by 2.13 per cent to Rs 335.42 crore, indicating a stable recovery in ad spends.

3. Subscription Revenue: Subscription revenue grew by 4.43 per cent, amounting to Rs 436.75 crore, driven by a strong subscription base.

4. Total Income: Consolidated total income for Q2 FY25 stood at Rs 1,064.14 crore, a slight decline from Rs 1,125.08 crore in the previous year.

5. EBITDA: EBITDA for the quarter was Rs 528.98 crore, down from Rs 716.21 crore year-over-year, reflecting broader industry cost pressures.

6. Profit Before Tax: Profit before tax decreased to Rs 498.40 crore from Rs 608.24 crore in Q2 FY24.

7. Profit After Tax: Net profit stood at Rs 398.17 crore, a decline from Rs 456.24 crore in the corresponding quarter last year.

8. Interim Dividend: The board declared a 100 per cent interim dividend at Rs 5 per share, underscoring strong cash flow.

9. Sports Franchise Income: Income from Sunrisers Hyderabad and Sunrisers Eastern Cape franchises reached Rs 497.14 crore for H1 FY25, with expenses at Rs 237.76 crore.

10. Market Position: Sun TV Network’s diverse portfolio and stable revenue sources position it resiliently amidst changing media industry dynamics.