Sun TV Network Ltd. share price target

Ad revenue declined 6.4% YoY in Q3FY25 as there was a sharp cut in ad spends by FMCG companies in Nov’24 and Dec’24. Subscription grew 2% YoY, lower than our estimated 4% YoY, as pricing hikes by the company are taking time to implement.

Sun TV Network (SUNTV) reported a weak 3QFY25 on all counts. Revenue/EBITDA declined 10%/25% YoY due to continued weakness in ad revenue (-14% YoY, vs. -8% YoY for Zee) and higher production costs.

Sun TV Network (SUNTV) reported a largely in-line 2QFY25, with revenue/EBITDA declining 12%/26% YoY (on a high base).

Q1FY24 ad-revenue growth for Sun TV continued to be muted (+0.2% QoQ/-1.2% YoY) due to media spends diversion to sporting events like IPL. We believe management sounded more confident about the revival in ad spends from Q2FY24. Subscription revenue grew higher than expected at 7% QoQ/ 6% YoY led by 5-6% price hikes as implementation of NTO 3.0 was smoother than envisaged earlier.

Ad-revenue growth for Sun TV in Q3FY23 continued to be muted as large FMCG companies remained cautious about their media budgets to protect profitability in an inflationary environment. E-commerce companies / tech start-ups cut their media spends and 40-50% of such companies completely stopped advertising on TV as investors concentrated on path to profitability.

Though Sun TV Network’s Q2FY23 ad revenue grew 0.2% YoY to Rs3.4bn, it slowed significantly vs Q1FY23. Nonetheless, it performed better than ZEEL (down 7.7%).

Sun TV Network’s Q1FY23 ad revenue performance was better than ZEEL, and on YoY basis, it benefited from low base of covid.

Sun TV reported a better-than-expected performance with revenue/PAT up 6.2%/3.5% YoY, respectively. The result was driven by: a) growth in ad revenue, which rose 11% above pre-pandemic level, and b) contribution...

Revenues (ex- IPL) at | 777 crore were up ~9% YoY, with ad revenues up ~40% YoY to | 342 crore, on a benign base of Q2FY21 (wherein ad had declined ~27%). Subscription revenues declined 4.5% YoY to | 408 crore...

Sun TV (SUNTV) reported in-line nos revenue/PAT was up 10%/14% YoY, with ad revenues reaching pre-pandemic (2QFY20) 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% CAGR over FY2023E. The recent upbeat valuation for the new IPL team auction makes the stock valuation compelling at below 10x on Sept'23E. Along with intensifying content investments to win market share, this is a...