Sun TV Network - 4QFY2013 Result Review - Angel Broking

For 4QFY2013, Sun TV's top-line performance was better than our estimates. The company reported 10.7% yoy growth in its top-line (vs our expectation of 8% growth) to Rs. 433cr driven by strong growth of 14.6% yoy in advertising revenue to Rs. 269cr. However, on the operating front, margins contracted by 311bp yoy to 73.7%. The company has decided to hike weekday prime-time advertising rates by 19% on an average on Sun TV channel with effect from 15th July 2013. Hence, we expect OPM to improve going forward. On the bottom-line front, PAT grew by 11.6% yoy to Rs. 178cr.

We maintain a neutral view on the stock.

Source : Equity Bulls

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