Sun TV Network Ltd. share price target

Sun TV's Q3FY19 performance was strong on the topline front but margins were lower on account of commissioning of news shows Revenues came in at | 904.45 crore (up 32% YoY). Ad revenues were up 13% YoY at | 382 crore, better than our estimate of 10% YoY growth. Subscription revenues were at | 350 crore (24.1% YoY growth vs. estimated growth of 21.5% YoY). The company booked Sarkar movie theatrical revenues of ~| 108 crore, during the quarter EBITDA came in at | 667 crore, up 35.6% YoY. EBITDA margin was...

Q2FY19 result highlights: Revenue for Sun TV Network was up 10.9% to Rs7.5bn (1.6% above expectation) on the back of 3.3% YoY growth in advertisement revenue, 19.6% YoY growth in DTH revenues and 27.7% YoY growth in digital revenues. Operating profit was up 11.7% YoY to Rs5.5bn on the back of 51bps margin expansion as employee cost and other expenses were down 5.1%/16.5% respectively. Depreciation and movie amortisation cost was down 20.3% due to lower movies broadcasted in the quarter. PAT rose 23.4% YoY to Rs3.5bn (17.8% above expectations) due to higher other income....

Revenues came in at | 749.6 crore (up 10.9% YoY), lower than our estimate of | 763 crore. The miss was owing to advertisement revenues, which witnessed 3.7% YoY growth vs. our estimate of 14% YoY growth). Subscription revenues came in at | 339.79 crore (21.3% YoY growth), much ahead of our estimate of 15.3% YoY growth, on account of continued benefits of Tamil Nadu digitisation EBITDA came in at | 554.3 crore, up 11.7% YoY, marginally below our expectations of | 561.4 crore largely owing to lower topline. Margins...

Sun TV Network Ltd Q2FY19 results Comment Revenue fell by 33.1% to Rs. 749.55 Cr in Q2FY19 when compared to the previous quarter. On the other hand, it increased by 10.9% when compared with Q2FY18.

3 November 2018 Sun TV reported stellar subscription growth (+21% YoY), but ad growth suffered (meager +3% YoY), which led to revenues growing 11% YoY (2% miss) to INR7.4b. Subsequently, EBITDA grew 12% YoY to INR5.5b (in-line) supported by provision write backs. PAT stood at INR3.5b, up 23% YoY (9% beat) on healthy EBITDA growth coupled with lower depreciation and high other income (incl. PAT grew 28%/36%/42% YoY in 1HFY19. PAT to grow 16%/16%/20%% YoY (a) shift of Dussehra festival (INR70m), (b) impact of Kerala floods (hurting Onam festival boost of INR70m), and (c) running two prime-time slots without advertisement for two days, estimated ad revenue growth is 8% YoY. On the other hand, domestic subscription revenue growth of 21% YoY was driven by digitization 28%/20% YoY growth in cable/DTH revenue.

Reducing price target to reflect impact of digital and OTT; retain BUY Incorporating our revised outlook on TV ad spend growth, based on rapidly rising OTT video consumption, we cut our target price for Sun to INR 780 (Dec-19) from 975 (Sep-19) previously. We maintain 11-12% annual ad revenue growth forecast for FY19 and FY20, but bring down YoY ad growth rate by 100bps each year beyond FY20. This results in a lower terminal FCF growth (5.0-5.5%), driving a 29% cut in implied exit EV/EBITDA multiple in our...

Q1FY19 result highlights: Revenues for Sun TV Network was up 42.5% to Rs11.2bn (10% above expectation) on the back of Rs3.9bn revenue from IPL, 20% YoY growth in advertisement revenue and 21% YoY growth in DTH revenues. Operating profit was up 63.8% YoY to Rs7,347mn on Rs2bn operating profit from IPL against loss of Rs224mn. Depreciation and movie amortisation cost was up 42% as company showed higher number of blockbuster movies on 25th anniversary of the Sun TV channel. PAT rose 62% YoY to Rs4,091mn (3.8% above expectations). Ex-IPL revenue growth was 14.1%YoY to Rs7.3bn while EBIDTA growth was 13.7%YoY to Rs5.3bn....

IPL beat strengthens our view; Subscription and Ad businesses continue the momentum Q1 numbers above expectations on IPL surprise. Sun TV Network Ltd (Sun TV)'s Q1 FY19 numbers came above our expectations as both Subscription as well as Advertising revenues grew strongly at 15% and 20% yoy respectively. IPL revenues got a boost at 3.82bn by the virtue of its team SRH ending up this season as runners up and overall surge in sponsorship and gate revenues. Management highlighted that despite dip in market share in Q1, there has been a good revival in it in July. Though the cable TV revenues grew by just 4% on a high base of last year which had some catch up revenues...

Revenues came in at | 1120.4 crore (up 42.5% YoY) vs. our estimate of | 1007.8 aided by higher-than-expected ad revenues revenue growth as well as beat on the IPL front. Ad revenues grew ~20% YoY to | 362.4 ahead of our expectations of 18% YoY growth. IPL revenues came in at | 385.9 crore, much ahead of our estimate of | 250 crore. Subscription revenues grew ~15.1% YoY to | 311.3 crore, below our estimate of 24% growth EBITDA was at | 734.7 crore, up 63.9% YoY, ahead of our estimate of...

12 August 2018 SUNTV reported splendid 1QFY19 results, led by a steady growth in ad/subscription revenue (in-line) and a positive surprise from the IPL business. IPL revenue at INR3.9b (INR1.4b in 1QFY18) grew by 1.7x YoY, leading to a robust growth of 42% YoY in standalone revenue to INR11.2b (+56% QoQ, 15% beat). This provided an impetus to the steep growth of 64% YoY (41% QoQ) in EBITDA to INR7.3b (23% beat) and margin expanded by 860bp YoY to 65.6%. Consequently, PAT surged by 63% YoY (17% beat) to INR4.1b. The IPL business turned profitable with a bang PBT of INR2b v/s INR225m in 1QFY18 (43% beat), driving margins. Ad revenue jumped up by 20% YoY to INR3.6b (in-line), mainly on the back of a low base (GST impact). Digitization led to a growth of 21% YoY in DTH revenue and a growth of 4% YoY in cable revenue drove the uptick of 15% YoY in domestic subscription revenue (INR3.