Sun TV going North

Kalanithi Maran-promoted Sun TV Network, which has till now primarily focused on the southern market, is planning a deeper engagement with the rest of the country, according to the senior management of the group.

Addressing a post-Q3 result analysts’ call on Thursday, company officials said that from the revenue point of view, “we want to ensure more leverage from our product”, and that’s the reason Sun Network is planning new strategies for regions beyond South India.

To a question on Sun’s North India strategy, an official said the company has put together a plan, but could not elaborate.
Sun TV Network has a bouquet of 20 satellite channels. The group also runs a direct-to-home (DTH) television business and FM radio operations.

On the expected third phase of private FM radio, officials said the group’s appetite for this category (radio) continues. However, it wants the government to change the commercial structure of the radio licence to bring rationality to the business.

“We along with other radio operators are in dialogue with the government.” The Sun group’s radio arm, South Asia FM, had bid aggressively in the second phase of FM privatisation.            

Sun has said that its pricing for the DTH segment will be guided by the Telecom Regulatory Authority of India. At present, Trai allows up to 7per cent increase in tariffs every year. The group has a DTH subscriber base of 5.6 million.

Giving a breakup of its Q3 revenues of Rs395 crore, the company said its advertising pie is Rs225 crore, broadcasting Rs 35 crore, overseas business Rs14 crore, analogue cable Rs39 crore, DTH Rs44 crore, movies Rs34 crore and others Rs4 crore.       

The Network reported a 35.4 per cent rise in net profit for the third quarter ended December 31, 2009 at Rs151.9 crore as against Rs112.2 crore posted in the same period last year.

Revenues during the reporting quarter rose 45.9 per cent to Rs395.1 crore from Rs270.8 crore in the corresponding period last year.

The company recently set up a subsidiary in the UK to broadcast and distribute its channels in Europe.