Sun TV Network Q1 net profit dips amid ad revenue decline

TV broadcaster Sun TV Network reported a marginal decline in its consolidated revenue and profit for the quarter ended June 30, as advertising income remained under pressure amid cautious spending by advertisers.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at ₹617 crore, down 13% from ₹706 crore in the same quarter last year. Profit after tax declined 3% to ₹529 crore, compared to ₹547 crore in Q1 FY25.

Total revenues for the quarter were ₹1,257 crore, compared to ₹1,276 crore in the year-ago period, reflecting a 1.5% year-on-year decrease.

Advertising revenues dropped 11% year-on-year to ₹290 crore, from ₹324 crore in the same period last year. TV ad revenues have been under pressure due to prevailing macroeconomic challenges and conservative advertising budgets from clients.

However, domestic subscription revenues continued to grow, rising 10% to ₹470 crore, up from ₹426 crore in Q1 FY25, despite the migration of pay-TV subscribers to video streaming.

The board of directors has declared an interim dividend of ₹5 per share (100%) on a face value of ₹5, reinforcing Sun TV’s track record of consistent shareholder payouts.Sun TV Network is one of India’s largest broadcasters, operating satellite television channels across seven languages: Tamil, Telugu, Kannada, Malayalam, Bangla, Marathi and Hindi. It also runs a nationwide network of FM radio stations.In addition to its traditional media presence, the company has expanded its footprint in sports and digital entertainment. It owns the Indian Premier League franchise SunRisers Hyderabad and SunRisers Eastern Cape, a team in Cricket South Africa’s T20 League. It also operates Sun NXT, its over-the-top (OTT) streaming platform.

The results for the quarter ended June 30, 2025, include income of ₹473 crore from the company’s cricket franchises, compared to ₹497 crore in the same period last year, marking a 4.8% year-on-year decline.

Corresponding costs for the quarter stood at ₹256 crore, up from ₹236 crore in Q1 FY25, reflecting an 8.5% increase in operating expenses related to the franchises.

The company also disclosed that an exceptional item recorded during the quarter and the full year ended March 31, 2025, relates to a provision for impairment in its investment in a joint venture.

The impairment was recognised due to the recoverable amount falling below the carrying amount, driven by the joint venture’s operational performance and prevailing economic and market indicators.

In a significant development following the quarter, Sun TV Network has signed a Share Purchase Agreement with the England and Wales Cricket Board to acquire a 100% equity stake in Northern Superchargers, a company registered in London, United Kingdom.

The acquisition is valued at £100.5 million and marks Sun TV’s entry into The Hundred, England’s professional 100-ball cricket competition.