Driven by the news that all Tamil channels of Sun TV Network have got on board Arasu Cable, the shares of the company gained close to two per cent on Tuesday at Rs 264.

The company inked a subscription pact with the State Government-run Arasu Cable network after a long period of negotiation.

According to a company official, Sun TV’s analogue cable subscription revenue dropped almost totally, in the absence of this pact. Now, the company expect its analogue subscription revenue to grow gradually in the coming months.

Besides, it will also change the channels’ viewership ratings, as the reach of the channels will now be wider. The company today announced the stock exchange that this agreement will enable the total availability of its channels on all cable TV distribution systems run by Arasu Cable across the State with immediate effect.

Sun TV enjoys a dominant market share in terms of viewership ratings and the new pact will facilitate in further enhancing the competitive positioning of its programmes.

Speaking to Business Line , Mr S.L. Narayanan, the group’s Chief Financial Officer, said, “Though it took some time, we are glad that it’s finally signed.” Refusing to give out the company’s growth expectations from this deal, he said it is a structured deal, and subscription revenue will surely grow over a period.

Towards the end of last week the share price crashed 40 per cent on media reports that the CBI is poised to file a charge-sheet against the Maran brothers for their role in the acquisition of Aircel by the Malaysian firm Maxis.

Last Friday, the stock opened 40 per cent lower at Rs 176.75, but bounced back sharply to trade at Rs 251.4.

The counter registered a trading volume of nearly 35.50 lakh shares in about 25 minutes after trading commenced on the NSE.

> rravikumar@thehindu.co.in

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