IPL, film distribution to increase Sun TV revenue

Sun TV Network expects the revenue contribution from its cricket franchise and film distribution business to increase significantly in the coming years. This emerges from the company’s management report in the 2023 annual report.

Sun TV is one of the largest television broadcasters in India, operating satellite television channels in Tamil, Telugu, Kannada, Malayalam, Marathi and Bangla, as well as broadcasting FM radio stations across the country.

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sales mix

In FY23 the company’s consolidated operating revenue increased by 5 per cent to Rs. 3,772 crore. Of the total revenue, subscription revenue was the largest at 45 percent. These are subscription fees charged to cable operators, authorized resellers, and direct-to-home (DTH) service providers. The company also receives a subscription fee for its OTT platform SUNNXT. The company’s subscription revenue declined marginally by 2 percent in FY23.

“Advertising and selling slots” accounted for another 40 percent of Sun TV Network’s operating income.

IPL boost

Sun TV Network owns the SunRisers Hyderabad cricket franchise of the Indian Premier League (IPL) and the SunRisers Eastern Cape of the T20 League of Cricket South Africa. The cricket franchise contributed 23.7 percent of its total revenue from operations in the fiscal year.

Cricket franchise income for the Indian and South African franchises will be determined in accordance with the Board of Control Agreement for Cricket India and Cricket South Africa respectively.

In a recent report, Nuvama Institutional Equities said Sun TV’s IPL revenue will see a sustained increase. According to Nuvama, IPL media rights were Rs. 3,300 crore a year earlier, rising to Rs. 9,600 crore given the presence of Disney and Jio. It is said that almost 45 percent (3,100 crore rupees) of this delta will go to IPL teams.

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“Considering a 20 per cent revenue share, there still remains Rs. 2,500 crore to be shared among the ten teams. So each team potentially gets Rs. 250 crore incremental revenue per year for four more years,” he added.

prison guard effect

Although movie distribution accounts for only about 7 percent of Sun TV Network’s total revenue, this segment saw the highest year-over-year growth of 45 percent last fiscal year.

Film distribution revenue is also expected to see strong growth in the current fiscal year as Sun Pictures-financed ‘Jailer’ is a phenomenal box office success. The Rajinikanth star is approaching Rs. The film has grossed 650 crore at the box office worldwide and is still doing well in its fourth week.

“We expect the revenue contribution from the cricket franchise to increase significantly, further supported by higher revenues from film distribution,” added Nuvama Institutional Equities.