Sun TV Network has announced an interim dividend of Rs. 2.50 per share of Rs. 5 face value. The company has reported a lower income of Rs. 438.98 crore in the first quarter ended June 30, 2012, against Rs. 471.28 crore in the year-ago period, largely due to a fall in cable revenues in Tamil Nadu.

The company expects the subscription revenue would start rising from this month as it had concluded an agreement with Tamil Nadu Arasu Cable TV Corporation to make available Sun TV’s channels on all cable TV distribution systems run by Arasu Cable across the state. The net profit stood at Rs. 164.31 crore against Rs. 187.62 crore in the year-ago period.

Sequentially, Sun TV has posted a rise of 5 per cent in advertisement revenues to Rs. 242.82 crore from Rs. 235.52 crore in the previous quarter ended March 31, 2012. This was due to a revival of growth in advertisement spending across all categories of advertisers, the company said in a statement.