buy and sell of entertainment & media NDTV stocks buy sell stocks online

Sun TV Network Ltd (updated - 26 June 2009)
With the radio business continuing to post higher than expected losses, the consolidated set of numbers from Sun TV haven’t quite come in as anticipated.

Also the growth in advertising revenues in the March 2009 quarter, at just 7per cent, isn’t encouraging and it’s lower spends overheads and only marginally higher expenses on employees that have helped the leading broadcaster in the South to post an increase in the earnings before interest and tax (ebit) of 32 per cent.

Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes are believed to be accurate and correctly dated, but does not warrant or guarantee their accuracy or date.
Our site takes no responsibility for any investment decisions based on recommendations provided on website.

The increase in the advertising revenues is way below the growth seen in the first three quarters of 2008-09. Sun TV is the market leader in three of the four southern markets but industry watchers suspect the broadcaster could be losing market share in Andhra Pradesh, Karnataka and perhaps in Kerala where it is the number two player after Asianet. However, Sun remains a strong player in the lucrative Tamil Nadu market. Advertising revenues should grow at a moderate 12-15 per cent in the current year but revenues from DTH will be strong and could double from last year’s levels of Rs 84 crore. Also, the management has indicated that losses from the radio business will reduce this year to around Rs 45 crore from Rs 70 crore last year.

While earnings are expected to grow at a somewhat subdued 20 per cent this year, the current price of Rs 235 discounts the stock by just over 21 times consolidated 2009-10 earnings. That is expensive in the current environment with the outlook on advertising revenues not too bright.
source - BS

Sun TV Network Ltd (updated - 25 Aug 2009)
Sun TV’s ratings in key markets like Andhra Pradesh and Karnataka appear to be stabilising after showing a downward trend towards the end of the last financial year. That’s probably why in a difficult environment, the broadcaster has managed to grow advertising revenues by 8 per cent year-on-year in the June 2009 quarter despite having been impacted by the IPL cricket tournament.

Revenues at Rs 288 crore, higher by 29 per cent year-on-year, were boosted by better subscription revenues, up 71 per cent, on alow base. Sequentially, though, subscription revenues were up just 4 per cent even though direct-tohome (DTH) revenues grew 17 per cent because cable revenues fell. Sun now has a fairly large base of 4.8 million DTH subscribers.

While the operating profit grew at 33 per cent, the profit after tax was up just 17 per cent. That’s because the quarter saw higher depreciation costs with costs of films released being amortised and also because of film rights acquired for the broadcasting business.

Sun Pictures has got off to a great start with some medium and small-budget films that have been hits at the box office, though its other business, FM radio — it now runs 42 FM stations —is yet to make money. While a part of the business (Kal Radio) is expected to break even this year, South Asia FM could continue to be in the red for some more time.

Sun TV is in an enviable position in the fast-growing southern market, being the market leader in three out of four states. As a result, it is also better positioned than rival broadcasters to cash in on the growing DTH subscriptions. However, while the economy is no doubt on the mend, the advertising market could take a while to pick up and therefore revenues could be muted this year.

Also, though Sun is the market leader in both Kannada and Telegu markets, they remain highly competitive. Analysts are concerned that the company is investing in the radio business, which could create limited value, and also point out that as it makes bigger films, the risks can only increase. They’re also apprehensive the broadcaster may venture into the Hindi general entertainment space via an acquisition. At Rs 271, the stock trades at just over 23 times estimated 2009-10 consolidated earnings and is not cheap.
source - BS

Sun TV Network Ltd (updated - 18 Nov 2009)
Driven by 37 per cent year-on-year growth in advertising revenues, Sun TV’s revenues jumped 35 per cent in the September 2009 quarter to Rs 320 crore, way ahead of the street’s estimates. Advertising revenues in the June 2009 quarter had risen 8per cent, partly because marketers had earmarked spends for the IPL cricket tournament.

The broadcaster’s net profit of Rs 130 crore in the September quarter, up 21 per cent year-on-year, though was only marginally higher than what analysts had expected. The early onset of the festival season this year, reviving the consumer spends, has obviously helped broadcasters since it has prompted, car makers, FMCG firms and telcos to spend more on promoting their brands.

With an undisputed hold over three of the four southern states, Sun TV has been able to cash in on the recovery in ad spends. However, the management is a tad cautious with its outlook and has indicated 20 per cent growth for the current year. That probably because, although, the broadcaster’s ratings in the states of Andhra Pradesh and Karnataka, had been trending down in the early part of 2009, may have improved, Zee remains a strong competitor.

Meanwhile, subscription revenues are gathering pace and DTH revenues grew 10 per cent sequentially to Rs 40 crore, though international subscription revenues remained flat. Sun’s domestic subscriber base has now crossed the 5million-mark. The radio business - Sun now operates 42 stations - could end up with losses of Rs 40 crore this year.

Sun Pictures, which has arolling budget of Rs 70 crore for films, released just one film during the quarter while posting revenues of Rs 3 crore. Analysts believe current valuations of close to 22 times estimated 201011 earnings factor in near term upsides; they are also somewhat concerned about the risks of investing free cash into businesses such as radio and films.