Comments
ICICI Securities
Sun TV (Hold)
CMP: ₹567.45
Target: ₹589
Sun TV Network (Sun TV) has been struggling with weak viewership share in its markets with incessant competition from Star India and ZEEL. While Sun TV’s primetime viewership share in Tamil, Telugu and Kannada markets has remained stable in FY19, it is much below the heydays. It has been experimenting with the content slate to regain market share, but all in vain. The launch of second GEC in Tamil has failed to change ratings share. Also, Sun TV is reducing its investment in movies which is visible from the low amortisation costs, which while helping earnings in near term, can be counterproductive for its portfolio.
With subscription revenue upside from digitisation in Tamil Nadu largely factored in, viewership share — which drives advertising revenue — will be a key performance driver going forward; continued weakness in market share has been our key concern. We maintain ‘hold’ on Sun TV with revised TP of ₹589 valuing it at 17xFY20 PE (20x earlier).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.