Sun TV posts 14 percent revenue growth

Chennai, Jan 23 (IANS) Broadcast major Sun TV Network Ltd. Wednesday announced that it had closed the third quarter of current fiscal with around 14 percent growth in its revenue against previous year's comparable period.

According to a company statement, Sun TV closed the quarter ending Dec 31, 2012, with a revenue of Rs.485.86 crore and an after-tax profit of Rs.189.88 crore as compared to Rs.425.11 crore and Rs.167.88 crore, respectively.

For the period under review, the company's advertisement revenue went up by 20 percent to Rs.293 crore.

"The OPM (operating profit margin) for the quarter stood at 77.5 percent, a decline of 279 basis points year-on-year, driven largely by 105 basis points year-on-year increase in cost of revenues and 141 basis points year-on-year increase in other expenditure. In spite of margin pressure, Net Profit grew by 13.1 percent. We believe the stock is fairly priced and hence maintain Neutral on the stock," Amit Patil, research analyst at Angel Broking, said.

The Sun TV board declared third interim dividend of Rs.2.50 per share with a face value of Rs.5 per share. With this, the total dividend declared by the board so far is Rs.7.50.