Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
DTH News : Sun Direct turns profitable at net level for full fiscal for first time
[Image: XcpD9wM.jpg]MUMBAI: Sun Direct, the DTH arm of the Kalanithi Maran-promoted Sun group, has turned profitable at the net level for the full fiscal for the first time.

For the financial year ended 31 March 2017, Sun Direct posted a net profit of Rs 32.21 crore compared to a loss of Rs 35.30 crore a year ago.

Total income stood at Rs 1,211.04 crore, up 8.46% from Rs 1,116.61 crore in FY16. The FY17 figures are provisional.

Sun Direct was incurring losses till FY16. The DTH company, which is largely present in South India, narrowed its net loss in FY16 which stood at Rs 156.92 crore in the previous year. Total operating income grew 6.48% from Rs 1,048.62 crore in FY15. The rise in income was backed by growth in subscription income.

DTH companies like Dish TV, Tata Sky and Videocon d2h are already profitable. Airtel Digital TV, the DTH arm of Bharti Airtel, also turned EBIT positive in FY16. The company turned Ebit positive for the full-fiscal at Rs 184.3 crore compared to EBIT loss of Rs 158.1 crore in FY15.

With Sun Direct turning profitable, the promoters need not infuse equity funding to support the DTH company. Sun Direct, which is 80% owned by Kalanithi Maran and his wife and 20% by Malaysia’s Astro, has a capital expenditure plan of Rs 1,475 crore for the next three financial years. Out of this, the intent is to have a debt funding of Rs 450 crore during FY18–FY20.

The future capital expenditure of the company is expected to be supported through internal accruals and debt, with no further dependence on promoters’ contribution. The main capex will be for purchase of customer premises equipment (CPE), a market source said.

Sun Direct’s ARPU has been seeing steady growth over the years. For the first nine months of FY17, the DTH company’s ARPU increased to Rs 175 compared to Rs 163 in FY16.

Earlier, the promoters of Sun Direct had been providing financial support to the company by infusing equity. Though Sun Direct started generating cash profits from FY13, it continued to incur losses until FY16.

The growth in ARPU has helped Sun Direct to improve on profitability parameters. The company’s losses at the net level have been declining over the last three years.

In FY17, Sun Direct added three transponders on GSAT 15. It has a total of eight transponders, equally split between Measat 3 and GSAT 15. The addition of the transponders has enabled the company to increase the number of HD channels its offers to 55. This will help the company to improve its ARPU going forward, a media analyst said.

Sun Direct is a privately held company with the Marans owning 80% stake and the remaining 20% being with South Asia Entertainment Holding Ltd (SAEHL), a wholly-owned subsidiary of Malaysian group Astro All Asia Networks Plc.

Sun Direct has a 9% share of the total active DTH subscriber base of 63.61 million, as per TRAI data for the quarter ended 31 March 2017. Dish TV leads the pack with a 25% share, followed by Tata Sky (23%), Airtel Digital TV (21%), Videocon d2h (20%) and Reliance Digital TV (2%).


Airtel Digital HD Recorder / Kerala Vision Digital TV
Thanks given by:

Possibly Related Threads…
Thread Author Replies Views Last Post
  DTH News: Monthly DTH bills to go down as Sun Direct and Tata Sky do away with network charges nairrk 0 733 02-14-2019, 12:42 PM
Last Post: nairrk
  DTH News: Star Sports 1 Kannada launches on Tata Sky, Sun Direct nairrk 0 2,135 01-02-2019, 06:56 PM
Last Post: nairrk
  DTH News: Sun Direct rev jumps 12% to Rs. 1,139 cr in 10M FY18 nairrk 0 854 04-03-2018, 09:39 AM
Last Post: nairrk
  DTH News: Sun Direct adds capability to deliver 80 additional HD channels with Harmonic nairrk 0 950 11-16-2017, 02:48 PM
Last Post: nairrk
  DTH News: Sun Direct is first DTH operator in India to use HEVC compression technology nairrk 0 1,017 09-25-2017, 09:48 AM
Last Post: nairrk
  DTH News: Sun Direct issues notice to offer Star channels a la carte from 1 Aug nairrk 0 778 07-24-2017, 11:20 AM
Last Post: nairrk
  DTH News: Sun Direct, Astro, Reliance Digital TV and the sniffing of a deal nairrk 0 887 07-04-2017, 09:44 AM
Last Post: nairrk
  DTH News: Videocon d2h posts net profit for full fiscal for first time, adds 1.05 mn subs nairrk 0 996 05-31-2017, 09:26 AM
Last Post: nairrk
  DTH News: DTH operators and tariff model at the wholesale and retail level nairrk 2 1,282 05-30-2016, 05:57 PM
Last Post: Mr.Bhat
  Digitisation has boosted direct-to-home segment IndianDTH 0 1,274 05-31-2013, 11:50 AM
Last Post: IndianDTH

Forum Jump:

Users browsing this thread: 1 Guest(s)