IPL franchise boosts Sun TV's FY24 revenue rise amid headwinds in the TV Business

Sun TV Network's revenue increased significantly in fiscal year 2023-24, thanks primarily to its Indian Premier League (IPL) franchise, Sunrisers Hyderabad, and its SA20 franchise, Sunrisers Eastern Cape.

The company's revenue from cricket franchises increased by 138% to Rs 659 crore in FY24, from Rs 276 crore the previous year. The company's consolidated revenue from operations climbed 15% to Rs 4,787 crore, while net profit jumped 13% to Rs 1,925 crore.

This increase was powered by a surge in revenue from the central revenue pool, which was supported by the Board of Control for Cricket in India’s (BCCI) record Rs 48,390 crore media rights contract with Disney Star and Viacom18 in 2022.

Sun TV's annual report for FY24 stated that revenue contributions from its cricket franchises will continue to rise, aided by other revenue streams from movie distribution in the years ahead. Income from movie distribution and rights sales climbed by 24%, from Rs 253 crore to Rs 313 crore.

Despite the success of its sports division, Sun TV's core broadcasting business faced hurdles. Advertising income fell 1.84% to Rs 1,493 crore, reflecting broader industry trends related to the migration of ad expenditures to digital.

In contrast, subscription revenue increased by 5.4% to Rs 1,814 crore, with the business stating that subscription revenue has now surpassed ad revenue. However, ad revenue remains healthy due to increased viewership.

The company's reserve and surplus as of March 31 stood at Rs 10,156 crore, compared to Rs 8,941 crore in the previous year