Chennai-based broadcaster Sun TV Networks net profit
in the first quarter ended 30 June 2012 fell 12.76 per cent
to Rs 1.64 billion from Rs 1.88 billion a year ago, on loss
of revenue due to non-carriage of its channels on the Tamil
Nadu government-owned Arasu Cable network.
TV has since signed an agreement with Arasu and its channels
are being carried on the Arasu network from 1 August. Sun
said its subscription revenues will start falling in
place due to the successful conclusion of agreement
with Arasu earlier this week but has not disclosed the terms
of the distribution agreement.
broadcasters total income in the first quarter was down
6.79 per cent to Rs 4.39 billion from Rs 4.71 billion a year
earlier. The networks Ebidta for the quarter stood at
76 per cent.
a reversal of trend during the preceding quarters, Sun TVs
advertisement revenue grew 5 per cent to Rs 2.43 billion in
the first quarter. The recovery in spending was seen
across all categories of advertisers national, regional
and local and across a wide range of industries, the
TVs expenses rose sharply in the first quarter to Rs
401.1 million, up 65 per cent from Rs 242.2 million a year
the utilisation of IPO proceeds, the company said against
the total projected utilisation of Rs 5.72 billion from the
public float, Rs 3.56 billion was utilised towards capitalisation
said Rs 1.27 billion was used towards launch of new channels,
purchase of new equipment and upgradation of existing equipment.
For construction of the corporate office, Rs 623.4 million
balance proceeds, after meeting IPO expenses, pending utilisation
have been invested in fixed deposits with banks, it said.