Earnings can surprise positively in this year, very optimistic on Sun NXT: Sun TV

Sun TV reported Q3FY21 earnings. Ad revenue growth is still not back to pre-COVID levels and the company reported lower subscription revenue growth. SL Narayanan, Group CFO of Sun Group discussed the numbers.

“This quarter beginning from January, things are looking up,” he said.

“If the economy grows at 14 percent nominal as what the budget document forecasts, we will have a surprise on the positive side this year,” he added.

Narayana further stated that he is very optimistic that Sun NXT will start growing once things stabilise on the contracting side.

In terms of subscribers, he said, “At this point in time we are not spending much on customer acquisition because we don’t want to build an OTT at a significant upfront investment. The margins on our OTT business are far superior to the regular linear TV thing.”

He believes movie releases will bring growth back in subscription revenues.

“We will see a lot of new movies hitting the screens and therefore within a short time on our satellite and our OTT platform. That is the reason I am very confident that our subscription revenues will come roaring back,” he said.