Sun TV Network, one of the largest TV broadcasters in the country with 20 satellite channels across four southern languages, plans Rs 300-crore capex during 2011-12.

Of the Rs 300 crore, Rs 150 crore has been earmarked for movie acquisition, Rs 75 crore for some “fixed assets” and another Rs 80 crore for working capital for movie production during the year.

Quoting a conference call that followed the results announcement, a research publication of the broking house, Edelweiss, said that Sun TV plans to produce seven movies in 2011-12.

Last year, it released five movies and thanks to the big success of its Enthiran (Robot), the company's movie revenues increased 13 per cent year-on-year, says the report without giving any specific revenue figures. Sun TV officials could not be reached.

Children's channel in Malayalam

Besides, the company plans to launch a children's channel in Malayalam in June 2011. Though the company is open to entry into smaller regional markets such as Bengali, Marathi and Gujarati either through greenfield channels, acquisitions or through joint ventures, it has no plans for Hindi GECs (general entertainment channels) as the “market is too crowded”.

For the year 2010-11, the company posted 48 per cent growth in net profit at Rs 770 crore on a turnover of Rs 2,013 crore against Rs 520 crore on Rs 1,453 crore in the previous fiscal.

Ad revenues

In the last quarter of 2010-11, Sun TV's ad revenue grew 16 per cent over the previous quarter, in spite of a huge base. In addition, it revised its advertisement tariff by 6-43 per cent across channels.

April and May have been quite good in terms of ad revenues. It has not seen any signs of a slowdown in ad revenues and feels its dominance is helping it.

The company's DTH revenue too went up 30 per cent year-on-year. ARPU (average revenue per user) is said to be Rs 35, with a total subscriber base of close to 7 million.

Its cable revenue (Sumangali Cable) too grew 22 per cent (year on year) in the fourth quarter. In 2001-011, it earned Rs 25 crore.

No big ticket movie this year

Sun TV has no plans to produce any big ticket movie this year.

Last year, it produced Rs 160-crore, Rajinikanth-Aishwarya starrer Enthiran (Robot), which Mr Hansraj Saxena, COO, Sun Pictures, remarked as “the Asia's biggest-budget film”.

For the year 2011-12, the company seems to have budgeted only Rs 80 crore for seven movies that it proposes.

Last year, it spent over Rs 30 crore for marketing of Enthiran alone. The movie was released simultaneously in Tamil, Telugu and Hindi in over 2,000 screens all over the world, and is said to have raked in over Rs 350 crore. In addition, the company said it has not yet included the potential revenues from the movie's satellite rights (valued at Rs 8 crore).

There was also talk that the company was planning a sequel to the move. However, Edelweiss' report quoting Sun TV officials says the company has no plans for a sequel of Enthiran.

Related Topics
comment COMMENT NOW