Sun TV Network Ltd has reported 24 per cent drop in net profit at Rs 159.03 crore for the quarter ended March 31, 2012, against Rs 208 crore in the previous year period.
Turnover too, dropped by over 7 per cent to Rs 427 crore (Rs 460 crore) for the quarter.
For the year ended March 31, 2012, the revenue was Rs 1,832 crore against Rs 1,971 crore last year. The net profit was Rs 694 crore in comparison with Rs 772 crore in the previous year.
Mr S.L. Narayanan, Chief Financial Officer of the Sun Group attributed the drop in turnover and profits to the “extraordinary windfall” in 2010-11, and the impact of Arasu Cable.
In the previous year, the feature film Enthiran , the Rajinikanth-starrer, contributed Rs 40 crore at the gross level and Rs 23 crore PAT.. The absence of the company's channel bouquet on Arasu Cable also took its toll on its subscription revenue to the extent of Rs 72 crore at the gross level and Rs 48 crore at PAT level, he said.
Ad revenue down
Pointing to the drop in ad revenue during the year, Mr Narayanan said the company had a very difficult year. However, considering the performance of comparable players in the listed entities space, “we would say our performance was much better”. The company posted 2.6 per cent drop in ad revenue at Rs 945.2 crore from Rs 970 crore earned in the previous year.
Going by the current trends, he said the company is cautiously optimistic about the growth prospects in 2012-13. Signals are rather unclear which way the country's economy is moving. Clearly, it is in the grips of depression, and the business mood seems to be not so encouraging, he said.
There is no ad rate revision on the cards for now. Besides, taking into account the TRAI's proposal to restrict advertisements, which is yet to be legislated, there is a need for judicious approach, he said.
rravikumar@thehindu.co.in