Sun TV Network, the second-largest local entertainment broadcaster, reported a strong 40% increase in ad revenue in the July-September period compared to the previous three months, as ad spending quickly normalized after the second wave. of COVID-19.
Compared to the same three months of last year as well, advertising revenue also increased by a similar percentage. The company did not disclose advertising revenue for the July-September 2020 period as it was impacted by the ongoing COVID-19 lockdown.
For the last period, the company did not disclose its subscription revenue.
Over the past two years, subscription revenue has overtaken advertising revenue as the mainstay of the business.
Still, the overall income increased by around 9.6% to Rs 829 cr.
Given that advertising generated around Rs 342 cr, it is estimated that subscription revenue generated around Rs 450 cr, better than the Rs 427 cr reported last year.
Despite the rebound, the company’s advertising revenue of Rs 342 cr for the three months ending September 2021 is historically down. Before COVID-19 hit, the company had been able to report advertising revenue in the range of around Rs 350 cr plus.
On a sequential basis, higher ad revenue helped the company offset the impact of missing IPL revenue. The IPL matches took place during the April to June quarter and contributed significantly to the company’s revenue for the quarter.
However, on a positive note, the lack of income from IPL also led to a drop in “other expenses” in the last quarter.
“Other expenses” fell to Rs 96 cr from Rs 135 cr in the previous quarter.
As a result, despite almost no sequential change in overall revenue, Sun TV was able to increase its pre-tax profit by around Rs 9 cr on a sequential basis. The number increased by Rs 67 cr from the September quarter of last year.