Sun TV Network Ltd's Q1FY19 standalone net profit rises 62.59% yoy to Rs409.14cr: Beats Estimates

The company’s standalone revenue in the period stood at Rs1,120.39cr, up 42.49% yoy and 56.27% qoq.

Aug 10, 2018 12:08 IST India Infoline Research Team

Sun TV Network Ltd Q1FY19

Standalone Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 1,120.39 42.5
EBITDA 734.71 63.9
EBITDA Margin (%) 65.6 856
Net Profit (adjusted) 409.14 62.6
***EBITDA margin change is bps

Sun TV Network Ltd’s Q1FY19 revenue grew 42.5% yoy and 56.3% qoq to Rs1,120cr, driven by strong subscription and advertisement revenue growth. EBITDA came in at Rs745cr, up 63.9% yoy and 40.6% qoq. EBITDA margin expanded 856bps yoy and contracted 729bps qoq to 65.58%. Adjusted PAT grew 62.6% yoy and 41.2% qoq to Rs409cr. Revenue, EBITDA, and PAT came above estimates of Rs990cr, Rs628cr, and Rs351cr, respectively.

• Advertisement and subscription revenue grew ~20% and ~15% yoy to Rs362cr and Rs311cr, respectively, in Q1FY19.
• New arrangements have led to a total saving of Rs14cr in the IPL franchise fees (Rs71cr) for the quarter compared to Q1FY18.
• Operating expenses stood at 7.2% of revenue vs 8.7% yoy aiding in EBITDA margin expansion.
• Employee benefit expenses stood at 7.6% of sales vs 8.7% yoy.
• Other expenses stood at 13.2% of sales vs 14.7% yoy, aiding in profitability growth.

Technical View:

Sun TV Network Ltd ended at Rs827.40, down 2.85 points, or 0.34%, from its previous close of Rs830.25 on the BSE. The scrip opened at Rs831.50 and touched a high and low of Rs833 and Rs821.75, respectively. A total of 14,70,289 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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