harshvardhan99

Media in focus(SUNTV)

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NSE:SUNTV   SUN TV NETWORK LTD
Q4FY21 revenue/EBITDA at Rs 7.8/ 5.5 bn were largely in line with our estimates ( Rs 8/5.4 bn ) but above consensus ( Rs 7.7/5.2 bn ). Advertisement revenue rose ~7% y-o-y (-11% vs Q4FY19), weaker than peer Zee (~9% y-o-y, -8% vs Q4FY19). Subscriptions rose ~7% y-o-y. But, DPS of only Rs 5 (~13% payout) in FY21 vs Rs 25 (72% payout) in FY20 and no buy-back announcement were key disappointments.

Commentary: Sun’s prime time market share in its flagship channel, SunTV , improved to 42% in April from ~37% in FY21. Going ahead, it plans high-cost non-fiction shows in Telugu/Malayalam and regain share. It targets to grow subscription revenue in double-digits in FY22F led by ongoing digitisation. On movie production, it plans to spend ~Rs 10 bn over the next two years.

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