Saregama India Ltd : Latest Quarterly Results Analysis

Movies & Entertainment company Saregama India announced Q3FY24 results:

Financial Performance:
- Total Operating Revenue for the quarter stood at Rs 2,043 million.
- Adjusted EBITDA reached Rs 822 million, achieving a healthy margin of 40%.
- Profit After Tax (PAT) was reported at Rs 523 million, marking a 9% increase over the second quarter of the fiscal year 2024.

Dividends:
- The board has declared an interim dividend of Rs 4 per share, which translates to a 400% dividend on the face value of Re 1 each.

Acquisitions and Partnerships:
- Saregama completed the acquisition of a majority stake in the digital entertainment company Pocket Aces Pictures Pvt Ltd in November 2023.

Content and Digital Presence:
- Music segment revenue saw a robust increase to Rs 1,690 million, bolstered by new content releases.
- Several major music releases occurred, including Divine's song and India concert tour agreement.
- Over 370 Originals and Premium Recreations were released across various languages.
- Launched more than 1,700 derivative tracks driving the catalog’s growth.
- Digital channels under Saregama's control have amassed 232 million followers and subscribers across various platforms.

Live Events and Other Highlights:
- Successful tours by artists like Diljit Dosanjh, and thematic events with celebrities such as Javed Akhtar.

Avarna Jain, Vice Chairperson, Saregama India, said, “We continue to strengthen our position across IPs in music and video formats, catering to entertainment needs of different target groups, We are well on course of achieving our targeted content investment for this year, laying a strong foundation for profitable growth in the years to come. The legacy of rewarding shareholders continues with the board declaring a 400% dividend”.

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Movies & Entertainment company Saregama India announced Q1FY24 results:

• Company’s operating revenue stood at Rs 1,633 million with a strong adjusted EBITDA of Rs 623 million at a 38% Margin.
• PAT of Rs 433 million at a 27% margin, delivering a margin growth of 6% over Q4FY23 and 2% over Q1FY23.
• Music segment revenue grew strongly to Rs 1,491 million with new content continuing to contribute significantly to the Company’s revenue and profitability.

Avarna Jain, Vice Chairperson, Saregama India, said, “Saregama continues to invest in content that generates healthy returns and fortifies its position as the leading music label. More importantly, our bets to diversify the business are well placed to realize the organization’s goal of being the leading entertainment company that continues to grow profitably. The success of our strategy is demonstrated in the Q1FY24 results with Operating revenue of Rs 1,633 million combined with 27% PAT margin”.

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Movies & Entertainment company Saregama India announced Q4FY23 & FY23 results:

• The company’s Operating revenue rose 29% YoY at Rs 7,513 million in FY23. PAT stood at Rs 1,890 million; up 24% YoY
• Adjusted EBIDTA grew 21% YoY to reach Rs 2,699 million in FY23 from Rs 2,230 million in FY22
• Adjusted EBIDTA Margin is 36%
• With revenue of Rs 2,074 million in Q4FY23, company posted highest ever quarterly revenue from operation registering a 15% growth compared to Q4FY22
• Music licensing revenue grew at 23% YoY, thereby recording a growth in excess of 20% for 5th year in a row. This is driven by combination of high quality of new content investment and continuing growth of catalogue.

Avarna Jain, Vice Chairperson Saregama India, said “The digital boom propelled by Govt’s progressive policies and growing income levels is resulting in a huge content demand in the country. Saregama with its enviable legacy and investments in technology, new content and personnel is well set to lead this content demand cycle, and create immense value for its stakeholders”.

Vikram Mehra, MD Saregama India,said “The company is committed to building efficiencies to deliver strong fiscal performance while it continues to diversify its range of businesses. We look forward to the best utilization of new generation technology like Artificial Intelligence and Data Analytics to augment the growth in all respects. We are excited to have marquee projects lined up for release in the coming year which will further strengthen our position as key player in the entertainment sector”.

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Movies & Entertainment company Saregama India announced Q3FY23 results:

• Q3FY23:
  • The company’s operating revenue for the quarter grew 23% to reach Rs 1,855 million in Q3FY23 from Rs 1,503 million in Q3FY22.
  • Company’s operating income before content charge, interest and depreciation (OIBCID) rose 17% to Rs 735 million in Q3FY23 from Rs 629 million in the corresponding quarter last year.
  • On YTD 9MFY23, the company’s revenue from operations has grown by 36% while PAT by 34% compared to 9 months ended FY22.
  • The board has declared an interim dividend of Rs 3 per share (300 % on the face value of Re 1 each).

Avarna Jain, Vice Chairperson Saregama India, said “The consistent growth delivered by the company demonstrates that our strategy is progressing in line with our vision, accentuating the strength and resilience of our business and our commitment to enhance value for all stake holders alike. The various partnerships that we have built, continue to drive our strong performance across different business segments”.

Vikram Mehra, MD Saregama India, said “The company continues to grow its diverse range of business and provide business and creative opportunities to the community in the entertainment sector. Leveraging on data analytics, distribution, and understanding of the evolution of the market, we are consistently improving the monetization of content, generating sustainable revenue from different sources”.

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Movies & entertainment company Saregama India announced Q2FY23 results:

• The Company posted the highest ever Operating Revenue for the quarter reaching Rs.1,892 million in Q2FY23 up 30% YoY.
• The company’s Operating Income before Content Charge, Interest and Depreciation (OIBCID) rose 31% to Rs.699 million in Q2FY23 from Rs.535 million in the corresponding Q2FY22.
• Q2FY23 PBT stood at Rs.621 million as against Rs.453 million in the corresponding Q2FY23 (i.e., 37% growth YoY)

Avarna Jain, Vice Chairperson Saregama India, said “Saregama’s strategy of investing in high quality new IP across audio and video has started paying rich dividends. And this is expected to accelerate with the growing digitisation across social strata in India”.

Vikram Mehra, MD Saregama India, said "Saregama has started achieving no.1 or 2 position in New Music across multiple Indian languages. Very soon we will not just be the biggest catalogue company but become leader in New Indian music also”.

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Movies & Entertainment firm Saregama India announced Q1FY23 Result :

• Q1 FY23 PAT up by 52% YoY to Rs.414 Mn
• The Company’s Operating revenue rose 61% YoY at Rs.1693 Mn in Q1 FY23.
• Company’s Operating Income before Content Charge, Interest and Depreciation (OIBCID) rose 54% to Rs.647 Mn in Q1 FY23 from Rs.421 Mn in corresponding quarter last year.
• Q1 FY23 PBT stood at Rs.558 Mn as against Rs.368 Mn in the corresponding quarter last year (i.e., 52% growth YoY)
• During this quarter, Company launched music of Mahesh Babu’s Sarkaru Vaari Paata in Telugu; Operation Romeo and Ittu Si Baat in Hindi with music from singers like Arijit Sigh and Jubin Nautiyal. It also released multiple ‘Originals’ songs sung by Neeti Mohan, Stebin Ben etc. Overall, Company released 186 films and non-films songs across Hindi, Bhojpuri, Gujarati, Punjabi, Tamil, Telugu, Malayalam, Marathi and Bengali languages. The other highlight of the quarter was the use of our songs by brands like Dabur, Vogue Eyewear, TVF, One Card, PhonePe etc. in their ad films.
• With retail markets opening up, Carvaan continued to regain its momentum. Company sold 98k units in Q1 compared to 45k last year. During the last fortnight of June, Company also started test marketing two new variants namely, Music Bar with Karaoke and Carvaan Mobile.

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Movies & Entertainment firm Saregama India declares Q4FY22 result:

• The Company’s Operating revenue rose 31% YoY at Rs.5806 Mn in FY22. PAT stood at Rs.1526 Mn; up 35% YoY
• Total Income stood at Rs 6155 Mn, up 30% YoY. FY22 PBT at Rs.2044 Mn; up 35% YoY from Rs.1519 Mn in FY21. PAT Margin maintained at 26%
• Company’s Operating Income before Content Charge, Interest and Depreciation (OIBCID) rose 54% to Rs.2229 Mn in FY22 from Rs.1451 Mn in FY21.
• Company’s Q4 FY22 Revenue from Operations at Rs.1802 Mn registered a 46% growth compared to same quarter last year. Q4 FY22 PBT stood at Rs.643 Mn as against Rs.503 Mn in the corresponding quarter last year (i.e. 28% YoY)
• During this quarter, Company has acquired over 1500 music IP belonging to 280 Telugu films from Mango Music. Company launched music of two big films: Sanjay Leela Bhansali’s Gangubai Kathiawadi and Mahesh Babu’s Sarkaru Vaari Paata. Both albums are super hits. Company released 135 films and non-films songs across Hindi, Bhojpuri, Gujarati, Punjabi, Tamil, Telugu, Malayalam, Marathi and Bengali languages.
• In FY22, Company registered 17% growth in Carvaan sales; 4.01 Lakhs units sold in FY22 as against 3.44 Lakhs units in FY21.
• In FY22 Films, Web Series and TV serials vertical crossed Rs.1000 Mn Revenue for the very first time. Company managed to deliver its first digital web series to a leading digital platform. Company also delivered two Marathi films.

Avarna Jain, Vice Chairman Saregama India, said “India's sustained economic growth and the universal acceleration of digital adoption by users across geographies are the key drivers of change in content consumption habits. This trend is expected to continue for a long time, and Saregama has aligned its content strategy to ride on this digital wave. The strategy includes monetisation of existing content as well as acquiring content through increased investments"

Vikram Mehra, MD Saregama India, said "Saregama is well poised to capture leadership position across Content IP industry. FY22 was a good year for the company, and we expect to continue this trend"

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Movies & Entertainment company Saregama India declares Q3FY22 result:

• Q3 FY22: PBT up by 40% and OIBCID by 44% YoY
• Q3 FY22 PBT is Rs.580 Mn against Rs.414 Mn in the corresponding quarter last year (i.e. 40% growth YoY).
• Company’s Operating Income before Content Charge, Interest and Depreciation (OIBCID) increased to Rs.629 Mn in Q3 FY22 from Rs.436 Mn in corresponding quarter last year (i.e. 44% growth YoY)
• On YTD 9 months ended FY22, Company’s Revenue from Operations has grown by 26% while PBT has grown by 38% compared to 9 months ended FY21
• The Board has declared an interim dividend of Rs. 30 /- per share (300 %).
• During this quarter, Saregama Acquired music rights of Karan Johar’s next directorial film Rocky Rani Ki Prem Kahani starring Ranveer Singh and Alia Bhatt. Company released 165 film and non-film “Original” songs across Hindi, Telugu, Tamil, Bhojpuri, Gujarati, Malayalam, Punjabi, Haryanvi, Bengali and Marathi languages. Company signed a global music licencing deal with short format video app Chingari. The other highlight of the quarter was the use of our songs by brands like Nestle, Amazon, PhonePe, Vivo, Himalaya etc in their ad films.
• Carvaan sales improved during the quarter in sync with festive season. Company sold 141k units during the quarter compared to 103k units in Q2.
• Saregama’s Tamil serial Roja and Anbe Vaa continued to be the Slot Leaders in their respective prime time slots. A new comedy series Naanga Vera Maari was launched on YouTube and received good response from the audiences
• Company is close to completing shoot of 2 Web Series for which Licensing deals are closed. The delivery is expected over next 4 months. Saregama recently announced its next Hindi web series ‘The Biscuit King’ based on the life of Rajan Pillai starring Prithiviraj Sukumaran.
• The rapid digitisation-of-India, further buoyed by the recent stay-at-home phenomenon, is the key driver of change in content consumption habits. This trend is expected to continue for a long time, and Saregama has aligned its content strategy to ride on this digital wave.

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Highlights:

• Q2 FY22: Revenue up by 34% and PBT by 19% YoY.
• Q2 FY22 Revenue from Operations is Rs.1451 Mn against Rs.1081 Mn in the corresponding quarter last year (i.e., 34% growth YoY).
• Company’s Operating Income before Content Charge, Interest and Depreciation (OIBCID) increased to Rs.535 Mn in Q2 FY22 from Rs.387 Mn in corresponding quarter last year (i.e. 38% growth YoY)
• Company’s Q2 PBT at Rs. 453 Mn registered a 19% growth compared to same quarter last year.
• On half yearly basis H1 FY22, Company’s Revenue from Operations has grown by 35% while PBT has grown by 36% compared to H1 FY21
• During this quarter, Saregama Launched multiple new songs across languages, including the hit music of Akshay Kumar starrer Bell Bottom and multiple non-films “Original” songs across Hindi, Bhojpuri, Gujarati, Punjabi, and Tamil languages. Company also marked its entry in the Haryanvi segment with its first song launch. The other highlight of the quarter was the use of the iconic song ‘Dum Maaro Dum’ by Apple in its latest iPhone launch advertisement.
• Carvaan sales improved during the quarter in sync with the easing of lockdowns in multiple states. Company sold 103k units during the quarter compared to 45k units in Q1
• Saregama’s Tamil serial ‘Chandralekha’ earned the rare honour of being the first Tamils serial to cross 2000 episodes. The other serial ‘Roja’ continued its leadership position.

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