(20 Janurary 2009 10:00 pm)

MUMBAI: Readying to size up Sun TV Network's pay-TV revenues, founder-promoter Kalanithi Maran has floated a distribution company in UK.

Sun TV Network Europe, a wholly owned subsidiary company of Sun TV, will broadcast and distribute Sun's channels in UK and Europe.

The outpost in UK will look at doing direct deals with cable TV and direct-to-home (DTH) operators. "The Sun TV channels are currently being distributed indirectly. In UK and Europe Sun TV will directly deal with the distribution platform providers," says a source familiar with the development.

Earlier in December, Sun TV had announced the restructuring of its distribution business in order to expand its footprint across the globe via all fixed networks including cable, DTH and internet protocol television.

Maran has also given structural shape to augment his domestic pay-TV revenues. Recently, he appointed two senior distribution professionals, Mohammed Mujeebuddin and Jawed Akhthar, to manage two verticals - South Indian and international business and the other comprising north, west and eastern markets of India.

Meanwhile, Sun TV has posted a healthy financial performance for the fiscal's third-quarter with the net profit rising to Rs 1.52 billion from Rs 1.12 billion a year ago. The 35.37 per cent jump was due to a robust growth in revenue.

The network, which runs 20 satellite TV channels across four languages of Tamil, Telugu, Kannada and Malayalam and has 42 FM radio stations across India, reported a revenue of Rs 3.95 billion, a rise of 45.88 per cent from the earlier year.

With the other income at Rs 83.5 million, the total income of the company was up 41.42 per cent to Rs 4.03 billion.

Advertising revenue, according to the source, jumped 44 per cent. "Besides FMCG, auto and retail, the big boost came from two telecom operators who launched their service in the quarter including MTS," the source adds.

Sun TV disclosed that against the total projected utilisation of Rs 5.72 billion (net of issue expenses) from the initial public offering (IPO) funds, an amount of Rs 3.56 billion has been utilised towards capitalisation of subsidiaries, Rs 872.6 million towards launch of new channels and purchase of new equipment and upgradation of existing equipment, and Rs 623.4 million towards construction of own corporate office.

Shares of Sun TV closed Wednesday at Rs 408.20 on the BSE, up 10.25 per cent from the previous close. The stock saw an intraday high of Rs 421.60 and low of Rs 367.10.

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Sun TV restructures distribution biz; creates two verticals