Sun TV shares closed 10.15% higher on Friday at Rs 767.95.Company SummaryNSEBSESun TVLoading data…
PEER COMPANIES MUMBAI: Sun TV Network soared up to 12% on Friday as the company is seen as the biggest beneficiary of the digitisation roll out by Tamil Nadu’s Arasu Cable Network. Analysts said subscription revenues from digitisation could double the company’s revenues over the next three years.
Sun TV shares closed 10.15% higher on Friday at Rs 767.95. The stock has declined 19% since April when it touched a 52-week high of Rs 950. Analysts said that Sun TV, with a large viewership base in Tamil Nadu, is positioned favourably to corner a sizeable share of the digital subscription revenue post the settop box seeding by Arasu Cable Network.
Digitisation is expected to boost the average revenue per user for the company. “ The average revenue per user for Sun TV will increase post digitisation. Their advertisement revenues from the Sun Risers franchise and overall revenue share from IPL will also increase from this year,” said AK Prabhakar, head of research, IDBI Capital Markets & Securities. The increase in average revenue per user is expected to be Rs 25 from a subscriber in Tamil Nadu, from the current Rs 1.6, of which Sun TV is expected to corner a minimum of Rs 10, said analysts.
“The political instability in the state is also helping sentiment in Sun TV,” Prabhakar said. Sun is owned by Kalanithi Maran, brother of DMK leader Dayanidhi Maran.