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Sun TV 3Q profits decline

India's Sun TV Network has seen a 25% decline in net profit for the financial quarter ended 31 December 2011, posting profits of INR 168 crore compared to INR 225 crore in the same period of 2010.

Turnover for the third quarter fell by 29% to INR 425 crore from INR 598 crore in the comparable quarter a year earlier.

For the nine months to end of December, Sun TV's net profit was INR 535.6 crore, compared with INR 564 the previous year. The period's total revenues amounted to INR 1,330 crore, as against INR 1,463 crore.

Sun said advertising revenue was stable and subscriber numbers grew during the third quarter – both nationally and internationally, thanks to its direct to home (DTH) satellite TV platform Sun Direct.

"Our international revenues are up by 19% and the DTH revenues too are up by 19%," Sun TV Network said.

The board of directors has declared a third interim dividend of INR 2.50 per share on a face value of INR 5 per share.

With this the total dividend declared by the board so far for the financial year 2011-12 is INR 8.75 per share.

As for the future, India's mandatory digitisation of the cable TV network will have a positive impact on business, the company said.

"In the post digitisation scenario, both DTH and cable network companies will record big gains in market shares, which in turn will prove to be an important upside to all broadcasters, who today are unable to capture the full revenue potential of the addressable market," said Sun TV in a statement.

Sun TV currently offers 33 channels in its bouquet. From 1 July 2012, it is expected to see real benefits from the digitisation of India's four main metros – in particular its stronghold of the Chennai metropolitan area. Other key metros of Bangalore and Hyderabad should begin contributing to revenues from March 2013, the company said.

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