Chennai: Despite increasing competition in the Tamil satellite channel space, Sun TV Network closed the financial year 2007-08 with a turnover of Rs.8.61 billion and a net profit of Rs.3.66 billion - up from Rs.6.76 billion and Rs.2.68 billion respectively, posted the previous fiscal.

On a consolidated basis, net sales and net profit for 2007-08 stood at Rs.8.69 billion and Rs.3.26 billion respectively, against Rs.6.77 billion and Rs.2.46 billion respectively the year before.

The company's board, which met here Monday, has recommended a dividend of 50 percent (Rs.2.50 per share of Rs.5 each) for the period under review.

According to the company, Rs.3.10 billion has been utilised towards capitalization of subsidiaries, Rs.496.8 million towards launch of new channels, purchase of equipment, and Rs.176.6 million towards construction of the corporate office in Chennai.

During the year, Sun TV through its subsidiaries launched a series of FM radio channels; it now owns 41 radio stations.

The group has got licenses to set up 45 FM stations, and will be one of the leading radio broadcasters when all stations become operational.

Its subsidiary South Asia FM Ltd acquired 48.9 percent interest in Red FM to further Sun TV's radio business in northern, eastern and western India.