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MUMBAI:
Chennai-based broadcaster Sun TV Network’s 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.
Sun
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.
The
broadcaster’s 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 network’s Ebidta for the quarter stood at
76 per cent.
In
a reversal of trend during the preceding quarters, Sun TV’s
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
company said.
Sun
TV’s expenses rose sharply in the first quarter to Rs
401.1 million, up 65 per cent from Rs 242.2 million a year
earlier.
On
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
of subsidiaries.
It
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
was utilised.
The
balance proceeds, after meeting IPO expenses, pending utilisation
have been invested in fixed deposits with banks, it said.
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