Sun TV Network Ltd. share price target

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.

 

ICICI Securities Ltd | Retail Equity Research Sun TV reported revenues of | 570.7 crore, lower than our expectations of | 590.9 crore as advertisement revenues posted a...

ICICI Securities Ltd | Retail Equity Research Sun TV reported revenues of | 574.1 crore, lower than our expectations owing to the loss in advertisement revenues, which...

Maintaining a conservative stance, we have taken an average increase of 7.5% yoy in ARPU (Average Rate per User) in our analog subscription revenue estimates for Sun TV in FY2015E and expect the complete impact of increase in...

Sun TV Network is one of the largest Television Broadcasters in India operating Satellite Television channels across four languages of Tamil, Telegu, Kannada and Malayam and also engages in airing FM radio stations across India....