Sun TV Network Ltd., a prominent South Indian broadcaster, has reported a significant decline in its financial performance for the third quarter of the fiscal year 2024-2025. The company witnessed a 20% year-on-year decrease in net profit, primarily due to a slump in advertising revenue.

In Q3 FY25, Sun TV’s consolidated net profit stood at ₹363.26 crore, down from ₹454.09 crore in the same quarter of the previous fiscal year. The revenue from operations also saw a decline of 10.35%, totaling ₹827.56 crore compared to ₹923.15 crore in Q3 FY24.

A significant factor contributing to the decreased net profit was the drop in advertisement revenue. The company reported ad revenues of ₹332.17 crore for the quarter, a 6.54% decrease from ₹355.43 crore in the corresponding period last year.

The Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) for the quarter was ₹432.13 crore, reflecting a 24.68% decline from ₹573.76 crore in Q3 FY24. Consequently, the EBITDA margin contracted to 53.7% from the previous year’s 63.8%.

On a positive note, subscription revenues experienced a modest increase of 2.03%, reaching ₹434.51 crore in the quarter ended December 31, 2024. Additionally, the company’s total income for the quarter was ₹927.66 crore, down from ₹1,014.81 crore in the same period last year.

Despite the downturn in profits, Sun TV’s board has declared an interim dividend of ₹2.50 per equity share for the current financial year.

Following the earnings announcement, Sun TV’s shares declined by over 7% on February 10, reflecting investor concerns over the company’s performance.

Dolat Capital has downgraded Sun TV Network to a ‘Sell’ rating, citing the weak performance of its core business and emphasizing the need for a revival in operations for potential re-rating.

Sun TV Network’s Q3 FY25 results highlight challenges in maintaining profitability amid declining advertisement revenues and increased operational expenses. The company may need to explore strategic initiatives to revitalize its core business segments and enhance shareholder value.

Key Highlights

• Sun TV Network reported a 20% year-on-year decline in net profit for Q3 FY25, totaling ₹363.26 crore.
• Revenue from operations decreased by 10.35% to ₹827.56 crore, with advertisement revenue dropping by 6.54%.
• EBITDA fell by 24.68%, leading to a contraction in EBITDA margins to 53.7%.
• The company’s board declared an interim dividend of ₹2.50 per equity share for the current financial year.