Q4FY21 revenue/EBITDA at Rs 7.8/ 5.5 bn were largely in line with our estimates (Rs 8/5.4 bn) but above consensus (Rs 7.7/5.2 bn). Advertisement revenue rose ~7% y-o-y (-11% vs Q4FY19), weaker than peer Zee (~9% y-o-y, -8% vs Q4FY19). Subscriptions rose ~7% y-o-y. But, DPS of only Rs 5 (~13% payout) in FY21 vs Rs 25 (72% payout) in FY20 and no buy-back announcement were key disappointments.
Commentary: Sun’s prime time market share in its flagship channel, SunTV, improved to 42% in April from ~37% in FY21. Going ahead, it plans high-cost non-fiction shows in Telugu/Malayalam and regain share. It targets to grow subscription revenue in double-digits in FY22F led by ongoing digitisation. On movie production, it plans to spend ~Rs 10 bn over the next two years.
Commentary: Sun’s prime time market share in its flagship channel, SunTV, improved to 42% in April from ~37% in FY21. Going ahead, it plans high-cost non-fiction shows in Telugu/Malayalam and regain share. It targets to grow subscription revenue in double-digits in FY22F led by ongoing digitisation. On movie production, it plans to spend ~Rs 10 bn over the next two years.