Sun TV plunges 10%, Nifty media index down 3%

Mumbai: Sun TV on Wednesday plunged over 10 per cent during the early trade after it reported a fall in advertisement revenues. Nifty media index fell by 3 per cent.

At 11.24 a.m., Sun TV on the NSE, was down 47.75 points or 9.02 per cent at Rs 481.40 a share.

Owing to a weak economic environment, Sun TV's Q2 advertisement revenues fell by 1.5 per cent YoY to Rs 337 crore.

ICICI Securities in its outlook on the company said that the weak macroeconomic growth clouds the ad growth outlook in the near term while content spend is expected to remain elevated.

"Subscription revenues, however, witnessed robust 16.9% YoY growth aided by strong monetisation from NTO implementation, " ICICI Securities said.

Profit after Tax (PAT) at Rs 366.5 crore was higher, aided by lower tax provisioning as it transitioned to a new tax regime while consequent adjustment was made for H1FY20 during Q2FY20.