Sun TV Q2 net profit at Rs 108.31 crore

Sun TV Network, a broadcaster operating satellite television channels and FM radio stations in Tamil, Kannada, Malayalam and Telugu, posted a net profit of Rs 108.31 crore for the quarter ended September 2008, a 35% increase over their profit of Rs 80.16 crore for the same period last year.

Their operational revenues showed a similar hike to Rs 237.88 crore from Rs 194.45 crore Q-o-Q. However, the company deferred a decision on buyback owing to volatile market conditions.

Sun TV’s half-yearly results also showed a steady rise since last year, with profits going up to Rs 210.85 crore from Rs 173.23 crore H-o-H, and revenues going up to Rs 461.45 crore from Rs 396.79 crore correspondingly.

Consecutively, the company gave an earning per share of Rs 2.75 over Rs 2.03 for the same period last year. It has a public shareholding of 23%. The company predicts that its direct-to-home (DTH) services division will be a major growth driver, even as its revenue through cable TV subscription increased by 20% over the previous quarter.

Announcing the utilisation of the projected Rs 572.0 crore (net of issue expenses) from its initial public offering (IPO) funds, it said that an amount of Rs 310.36 crore has been utilised towards capitalisation of subsidiaries; Rs 64.71 crore towards launch of new channels and purchase of new equipment and up-gradation of existing equipment; and Rs 34.62 crore towards construction of owned corporate office.

The balance proceeds from the IPO after meeting IPO expenses, pending utilisation have been invested in fixed deposits with banks.

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