Sun TV Network at 10 PE and IPL theme via SunRisers Hyderabad Cricket Franchise

Sun TV Network at 10 PE and IPL theme via SunRisers Hyderabad Cricket Franchise


  • Strong market position, large content library, consistent investment in new programming provide revenue visibility
  • –STNL has a strong viewership,with its flagship channel Sun TV commanding a leading position (1stin Tamil Nadu/ Pondicherry and 5thin  India  as  per  BARC  data [Week  12,  2+]) in  terms  of  viewership/impressions  in  general entertainment  category. 
  • STNL’s channels have consistently been among the top five in terms of viewership across all South Indian languages. 
  • A large content library built over the years and consistent investment in new programming helped it to maintain high TRPs over the last several years, ensuring revenue visibility in advertising and subscription segments. 
  • Its revenues from the sport franchise improved to 16% in 9M FY2024 from 8% in FY2023 on account of an increase in IPL’s global media rights for the upcoming five-year period (CY2023 –CY2027).   
  • The  same  was sold  at  ~Rs.  48,000  crore,  which  is  3  times  as  that  for  the  prior five-year  period.   
  • It  also acquired new license to operate ‘SunRisers Eastern Cape’ (South African professional Twenty20 franchise cricket team),along with its existing license to operate ‘SunRisers Hyderabad’ in IPL. 
  • Strong financial profile characterised by robust coverage metrics and superior liquidity 
  • –With the competition from sports genre impacting advertisement revenue as well as linear shift in subscribers from TV to OTT affecting the subscription revenue, the revenue growth from this key revenue segment is expected to remain modest in the near term. 
  • Notwithstanding the same, its financial profile remains strong, as characterised by robust profitability and coverage indicators. 
  • STNL’s OPM stood at 65.5% and  its  NPM  stood  at 45.1%  in  FY2023 and  continued  to  remain  healthy  with  an  OPM  and  NPM  of 63.7%  and  45.3%, respectively,  in  9M  FY2024,  which  led  to  robust  coverage  indicators. 
  • STNL is  netdebt-freewithsizeable  cash  and  liquid investment balance of Rs. 4,836.3crore as on September 30, 2023, facilitated by its strong accruals. 
  • ICRA expects the company to maintain its strong financial profile going forward. 
  • Credit challengesVulnerability of advertising revenues to economic slowdowns and competition
  • –STNL derived 39% and 32% of its standalone revenues  in  FY2023  and  9M FY2024,  respectively,  from  advertisements. 
  • The revenues  from  advertisement  segment  remain exposed to inherent sectoral risk and are dependent on the macro-economic environment as well as advertisement spends by corporates, with the  latter  being  vulnerable  to  economic  cycles. 
  • In  addition,  rising  competition, with  increasing number  of channels in the mass content and niche segments such as sports, continues to pressurise the advertisement revenues, as visible in the 4% YoY decline in advertisement revenue in 9M FY2024. 
  • ICRA expects the advertisement revenue to grow by single digit for the FY2025, supported by Sun TV’s high viewership. 
  • Working capital-intensive nature of business due to high receivables 
  • –Like most players in the industry, STNL’s operations are working capital intensive in nature. 
  • It offers extended credit periods to advertisement agencies, DTH and cable operators. 
  • It  also  faces  delays  in  actual  payment  receipts,  which  stretch  the  working  capital.   
  • Despite  high  working  capital  intensity  of 27.9% as on March 31, 2023, the company’s healthy accruals and moderate capital expenditure led to superior cash flows and liquidity. 
  • Notwithstanding its elongated working capital cycle, STNL has not faced any major bad debt concerns in the past.

    • Sun TV Network at 10 PE and IPL theme via SunRisers Hyderabad Cricket Franchise 

    https://youtu.be/U0kFk1kMl-s?si=HDn1lA2GDnz9aZsS

    • Sun TV Network Limited, one of the largest Television Broadcasters in India, operates Satellite Television Channels across six languages of Tamil, Telugu, Kannada, Malayalam, Bangla and Marathi, airs FM radio stations across India
    • owns the SunRisers Hyderabad Cricket Franchise of the Indian Premier League, SunRisers Eastern Cape of Cricket South Africa's T20 League and the Digital OTT Platform Sun NXT
    • The Board of Directors of the Company at their meeting held on 18th July 2025 have approved the Acquisition of 100 % Equity of Northern Superchargers Limited a Company registered in London, United Kingdom amounting to GBP 100.5 million. On Completion of the acquisition of Northern Superchargers Limited, it will become the wholly owned subsidiary of Sun TV Network Limited. 
    • This is in furtherance to disclosure made by the Company on 6th February 2025 on winning the bid for 100% of the equity of Northern Superchargers Limited one of the eight franchisees of The Hundred, a cricket league in United Kingdom. 

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