Sun TV tumbles 12% as operational expenses jump 66% YoY in Q2

Shares of Sun TV Network tumbled 12 per cent to Rs 467 on the BSE on Wednesday after higher operational expenses dragged the company’s consolidated profit before tax (PBT) 26 per cent lower at Rs 400 crore, in September quarter (Q2FY20) on YoY basis.

In the quarter under review, the company’s operational revenue went up 6 per cent at Rs 826 crore, while total expenses jumped 66 per cent to Rs 500 crore over the corresponding quarter of the previous year. Additionally, the company’s advertisement revenue came in at Rs 337 crore, down 1.5 per cent YoY, impacted by a weak economic environment.

EBITDA (earnings before interest, tax, depreciation and amortisation) declined 15 per cent at Rs 469 crore on YoY basis. Consolidated net profit, too, remained flat YoY at Rs 369 due to lower tax provisioning.