Tv network

Sun TV Network’s FY22 Outlook Remains Positive Despite Near-Term Headwinds

KOLKATA: Sun TV Network weathered the pandemic well in FY21 despite initial setbacks as it ended the fourth quarter with a profit of Rs 449.88 crore, up 80% year on year the other. While there may be short-term headwinds in ad revenue due to the second wave of the pandemic, the company remains confident that performance would be much better than during the last lockdown.

The broadcaster saw its ad revenue rebound in the January-March quarter. However, the second wave hit performance in the first quarter of FY22. Whether a third wave would be deadlier is still unclear. As a result, the company has given no specific guidance for the year ahead, but its target for the year is to reach at least FY20 levels, a company spokesperson said during a briefing. call for results.

In FY21, the company’s subscription revenue grew approximately 11% in FY21. The company is confident of maintaining double-digit growth in FY22 as well. , especially since it hopes to see an increase in purchases of set-top boxes by a related distribution company. Despite the uncertainty around NTO 2.0, the company sees enough visibility on the subscription side.

The company improved prime time viewership in the Tamil market from 37% to 42%. As it aims to approach 50%, it takes steps to improve the quality of the content, the overall narrative of the storytelling. On the other hand, its overall share of fiction has increased by 36% in the Kannada market compared to the last two or three quarters. Therefore, Sun TV wants to stay focused on capturing market share in these two markets.

Additionally, it has lined up “some huge launches” in the Telugu and Malayalam market over the next couple of months.

However, its plans for Sun NXT, the exaggerated arm, have again been pushed back, despite having seen 40-50% growth in the past six months. While the company is in talks with many potential producers of OTT Originals, it won’t start anything on that front until at least Q2. But the company can continue with the first digital films of small and medium films on the platform. Every time the platform uploads a new movie to the platform, the subscription increases immediately.

For this fiscal year, the company has ambitious film production plans. It watches eight movies, costing almost Rs 1200 crore. Four films are in production as filming has begun in multiple stages and one is nearing completion, a company spokesperson said. Due to the delay in completing the first four films, the others may be picked up in the second half.

Despite the strong performance in the fourth quarter, the company’s dividend payout policy drew heavy criticism from investors during the conference call. For FY21, the dividend payout fell to Rs.5 per share from Rs.25 per share in FY20. Investors have raised the issue that management takes a regular commission but does not consider of the interests of shareholders. Sun TV Network management was unable to make a forward-looking statement, but said it would share this concern with the board.