Sun TV Network Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Revenue came in | 675.9 crore (up 8.1% YoY) vs. our estimates of | 663.8 crore. Ad revenues grew by 4% YoY which were in line with...

Revenue, EBITDA in-line: Standalone revenue increased 8% YoY to INR6.8b (in-line), led by healthy domestic subscription revenue growth. EBITDA rose 6% YoY to INR5b (4% beat), with the margin contracting 120bp YoY to 73.4% (est. of 71.4%) due to a 25% YoY rise in production cost. Decline in other...

Revenue increased by 34.99% to Rs. 786.32 Cr in Q1FY18 when compared to the previous quarter Revenue increased by 34.99% to Rs. 786.32 Cr in Q1FY18 when compared to the previous quarter

Sun TV's Q4 ad revenue (incl. broadcast fee) declined 6.7% YoY (down 7.5% in Q3; in line with expectation) on continued adverse impact of demonetization.

ICICI Securities Ltd | Retail Equity Research Revenues were at | 582.5 crore vs. our estimate of | 610.3 crore. Though subscription revenues grew 12% YoY to | 241.9 crore (in line with expectations of 12.3% YoY growth), the company continued to disappoint on the advertisement revenue front. From this quarter onwards, the company reported advertisement revenues inclusive of broadcast fees. On a combined basis, advertisement revenues posted a steep decline of ~6.7% YoY to | 292 crore, which is far...

Arasu Cable, the state run MSO, has finally been granted a provisional DAS license after the ongoing dispute of five years. This will provide a fillip to digitisation activity in Tamil Nadu, which has long been in a limbo owing to the constant opposition from Arasu Cable. The latter was denied the MSO license owing to Trai's resistance to the fact that the state government owned it. Arasu Cable has ~7.0 million (mn) subscribers on its network. In turn, it pays ~| 3.5-4.0 per subscriber to Sun TV for its 7 mn subscribers vs. ~| 25 & ~| 40 per subscriber received from the other...

ICICI Securities Ltd | Retail Equity Research Revenues were at | 589.4 crore vs. our estimate of | 618.0 crore. Subscription revenues grew 17.0% YoY to | 241.9 crore, owing to robust growth in cable subscription revenues, aided by inclusion of digital revenue. Advertisement revenue, however, posted de-growth of 6.8% YoY due to more pronounced impact from demonetisation as it has a higher dependency on regional advertising EBITDA came in at | 439.7 crore, lower than our expectation of...

All charges have been dropped against the Maran brothers in the Aircel Maxis case along with all other accused in corruption and money laundering cases by the Special 2G court. The promoter being involved in the 2G case had been a major overhang on the stock, over the last five years, despite the broadcaster having return ratios superior to Zee Entertainment, which trades at far superior multiples. We believe the clean chit will result in a re-rating of the stock from its current P/E of 18x...

Revenues came in at | 625.5 crore vs. our estimate of | 623.3 crore. Advertisement revenues were muted at 2.1% YoY and | 309.4 crore, largely in line with our estimates of | 310.5 crore. Subscription revenues remained healthy at | 235.4 crore, up 16.9% YoY The EBITDA came in at | 466.3 crore, lower than our expectation of | 476.2 crore, up 7.9% YoY. Margins came in lower than...

Revenues came in higher than expected at | 760.8 crore (estimated: | 739.2 crore) on account of better than expected revenues from IPL of | 144.0 crore vs. estimates of | 117.0 crore. The subscription revenues came in at | 232.1 crore (up by 20.3% YoY) higher than our estimates of | 217.4 crore (up 12.6% YoY) primarily led by strong traction in the cable subscription revenues. However on the ad revenue front, Sun TV posted de-growth of 2.9% YoY vs. estimates of a 1.8% YoY growth largely due to decline in non Tamil markets. EBITDA came in at | 436.4 crore, slightly lower than our expectation of | 438.9 crore, up 6.7% YoY. The margins came in lower at 57.4% (down 184 bps YoY) vs. estimates of 59.4% owing to higher than expected administrative expenses.

Valuation: The promoter is under the CBI lens and any negative outcome on the same could have spill over effects on the company. Hence they continue to maintain HOLD recommendation with a revised target price of | 480 at a 15x FY18E EPS of | 32.0.