Sun TV Network, which runs multiple channels in Indian languages, has reported a 20% decline in consolidated profit after tax (PAT) for the third quarter of FY25. The company’s PAT stood at Rs 363.26 crore, down from Rs 454.09 crore in the same quarter last year.
According to the company’s BSE filing, revenue from operations fell by 10.35% to Rs 827.56 crore in Q3 FY25, compared to Rs 923.15 crore in Q3 FY24 which saw an 8% decline in total, settling at Rs 967.56 crore.
Despite the tough quarter, Sun TV’s board has approved an interim dividend of Rs 2.50 per equity share (50% of the face value of Rs 5 per share) for 2024-25.
On a standalone basis, Sun TV’s total income for Q3 FY25 stood at Rs 927.66 crore, lower than the Rs 1,014.81 crore reported in the same period last year. Advertisement revenue slipped to Rs 332.17 crore from Rs 355.43 crore in Q3 FY24, reflecting a broader trend of advertisers shifting budgets toward digital platforms. Subscription revenue, however, provided some stability, growing by 2.03% to Rs 434.51 crore.
Operational costs significantly impacted the company’s EBITDA, which fell to Rs 432.13 crore from Rs 573.76 crore in Q3 FY24. Profit before tax (PBT) dropped to Rs 454.61 crore, compared to Rs 591.31 crore last year. The after-tax profit (PAT) also saw a sharp 20.6% decline, landing at Rs 347.17 crore from Rs 437.34 crore in Q3 FY24.
On a consolidated level, the total income for Sun TV dropped to Rs 967.56 crore from Rs 1,058.66 crore in Q3 FY24. Revenue from operations fell to Rs 827.56 crore, down from Rs 923.15 crore in the previous year’s Q3.
The company’s consolidated PBT stood at Rs 473.87 crore, compared to Rs 611.85 crore in Q3 FY24. PAT followed the same downward trajectory, dropping to Rs 363.26 crore from Rs 453.09 crore.
Additionally, Sun TV owns the Sunrisers Hyderabad IPL team and the Sunrisers Eastern Cape team in South Africa’s T20 league. While these franchises have contributed to overall earnings, their impact this quarter was minimal. Revenue from the cricket teams stood at Rs 0.11 crore, a significant drop from Rs 8.98 crore in Q3 FY24. At the same time, the cost of maintaining these teams remained high at Rs 1.09 crore, further affecting margins.
Furthermore, the media landscape is shifting rapidly, with advertisers diverting budgets to digital platforms like YouTube and OTT services. While Sun TV’s subscription revenue has slightly grown, advertising remains under pressure.