Sun TV Network’s income from cricket franchises grew 138% in FY24
According to Sun TV Network’s annual report, the network’s income from subscription grew 5% whereas income from advertising and sale of broadcast slots declined by 1.89%
Sun TV Network’s total Income for the year ended March 31, 2024 grew by 15.28% to Rs 4,787.12 crore against Rs 4,149.10 for the year ended March 31, 2023. The revenue from operations grew by 13.52% to Rs 4,282.10 crore in FY24 against Rs 3,772.05 crore in FY23, according to the company’s annual report.
The network’s income from cricket franchises saw tremendous growth of 138% in FY24 to Rs 659.03 crore against Rs 276.01 for the year ended March 31, 2023. The network’s income from subscription grew 5% to Rs 1,814.34 crore against Rs 1,721.44 crore. Income from advertising and sale of broadcast slots declined by 1.89% to Rs 1,493.10 crore against Rs 1,521.80 crore. The income from movie distribution and sale of rights was Rs 313.46 crore as compared to Rs 252.53 crore and income from Content trading was Rs 2.17crore.
The company said that the sustained growth and consistent higher margins are reflective of the company's continued dominance in broadcasting business in the southern states and increase in digital business over last year profit before tax (PBT), Profit after tax (PAT) and Total comprehensive income Profit Before Tax was at Rs. 2,548.54 crore as against Rs. 2,238.12 crore in the previous year. The Profit After Tax was at Rs. 1,875.15 crore as against Rs. 1,674.53 crore in the previous year.
According to the annual report, Sun Network delivers a steady flow of highly popular programs and a dominant share of audience viewership which has given the network tremendous pricing power vis-a-vis competitors.
“Sun Network Continues to have its presence across genres like general entertainment, movies, music, news, kids, life and while having a considerable market share in the four southern states of India (Tamil Nadu, Kerala, Karnataka and Andhra Pradesh), has expanded to Bangla and Marathi Languages in the recent years. It has forayed into the Hindi language in the current financial year,” the report stated.
The network said that in the coming years it is expected that the contribution of revenues from the Cricket Franchise will rise substantially, further supported by incremental revenues from movie distribution.
“It is expected that the new stream of revenue for the company arising from the increased DTH subscriber base in South India would maintain a positive momentum in the coming years. This may be achieved by the drive initiated or to be initiated by the Government towards digitalization and addressability for cable television which would help Sun TV Network, being the largest regional television network, to be one of the major beneficiaries of the recent growth in the DTH space,” network mentioned in the annual report.
It also mentioned that the Indian M&E industry is on an impressive growth path. The industry is expected to grow at a much faster rate than the global average rate. This can be majorly credited to rising incomes, increasing internet penetration and a growing push toward digital adoption. In the long run, growth is the M&E industry is expected in retail advertisement on the back of several players entering the food and beverages segment, E-commerce gaining more popularity in the country, and domestic companies testing out the waters. India's rural regions are expected to be the next regions for growth. India has also gotten on board with 5G and is already planning for 6G well ahead of the future. This push towards digital adoption especially in the rural regions will provide advertisers and publishers with an immense opportunity to capture untapped markets and help grow India's media and entertainment industry forward.
