MUMBAI: The Sun TV Network, which owns Indian Premier League franchise SunRisers Hyderabad, informed on Monday that its IPL team contributed revenues worth Rs 175.55 cr in the six month period ending September 30, and Rs 51.63 cr (Rs 516.3m) in the second quarter.
Total revenues of South India’s leading broadcast network rose 9.59% at Rs 828.67 cr compared to Rs 756.16 cr recorded in the corresponding period last year.
Profits after taxation went up about 13.7% year-on-year to Rs 393.32 cr in the second quarter.
For the record, SRH reported losses of Rs 147 cr over its first five years of operations (Sun TV bought the franchise for Rs 425 cr in October 2012). It was declared operationally break-even in its sixth year, and has been declaring profits since 2019.
Sun TV’s chief financial officer SL Narayanan said the company would consider a spin-off or listing the company if it will help unlock value for the shareholders. He was speaking at the post-results conference call on Monday evening. The CFO added that while there are no such plans at present, the company would certainly look at it at the appropriate time.
“So, but at this point in time, Sunrisers is a division of Sun TV Network Limited and we disclose the revenues and costs every season. But I’ll be — I just can’t say, that we won’t do any spinoff or listing it separately. If there is a way in which value unlocking can be done for the benefit of shareholders, we will certainly look at it at the appropriate time. But at this point in time, there is nothing,” the CFO was responding to a query on the conference call.
As per the CFO, the IPL franchise is definitely saleable. He cited the example of the Delhi franchise (Delhi Daredevils). Jindal South West (JSW) had bought a 50% stake in the Delhi-based IPL franchise at a valuation of Rs 550 cr.
Earlier this year, US-based private equity firm RedBird Capital Partners bought a 15% stake in the Rajasthan Royals. While financials were not disclosed, the stake offload by the jaipur-based IPL team was reported to be at an enterprise valuation of $250 million.
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