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HomeNewsNational NewsSun TV Network expects weak results due to economic slowdown
Monday, 09 September 2019 13:46

Sun TV Network expects weak results due to economic slowdown

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Sun TV Network group CFO SL Narayanan commented in an earnings call with analysts after the 1st quarter of FY 20 that the current slowdown in the Indian economy has marred the expected growth of major companies, and companies like us are not an exception. 

Sun TV is South India’s largest broadcaster and he said that it is being cautious about the growth expectation for the rest of the year especially due to a headwind in the advertising sector. Due to this, the Marathi channel launch has been put on hold.

He said: “Gloom has spread across sectors like auto and real estate and because of that, there is some multiplier effect which is pulling down the momentum in the economy. So, if you look at all the numbers that have come out from FMCG companies, barring some notable exceptions, like Asian Paints, everybody is painting a very down outlook. So, in that context, we shouldn't expect anything spectacular for the remaining calendar year at least. People are saying that if the monsoons are good, things will pick up because of better spending power coming into the rural economy. But all that is still a guesstimate.”

He added: “The outlook for advertising this year is challenging. My company is unable to give any guidance on advertising as well and need to set expectations very reasonably. According to him, even ending up with a mid-single-digit growth would be lucky this year.”

Ad revenues for the first quarter of FY 2020 stood at Rs 368 crore, broadcast at Rs 10 crore, international subscriptions around Rs 41 crore, revenue from pay channels including digital was about Rs 169 crore and DTH Rs 228 crore. Along with these segments, movie production helped to garner around Rs 41 crore and IPL Rs 244 crore.

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