Saregama Q1 rev balloons to Rs 111.3 crore
MUMBAI: Saregama’s revenue for the quarter ended 30 June rose 79% to Rs 111.3 crore compared to Rs 62 crore in the same quarter of the previous fiscal.
The revenue rise was on the back of strong performance from the music segment. Music revenue more than doubled to Rs 99.7 crore from Rs 45.5 crore. TV & films revenue was down 30% to Rs 11.6 crore from Rs 16.5 crore.
The company witnessed 33% growth in music publishing revenue, 41% growth in music over the top (OTT) revenue, and 29% increase in YouTube revenue.
Net profit increased 161% to Rs 8.6 crore compared to Rs 3.3 crore.
Saregama said that the OTT and YouTube will continue double-digit growth while telecom will continue to decline. It further added that acquisition of new music content will start helping publishing business to grow further.
The company said that collection societies (IPRS, PPL) have a lot of headroom. IPRS has received copyright society registration from the government and has started issuing publishing licenses. PPL has shown revenue growth in the first quarter.
In Q1, the company sold 164,000 units of Carvaan. It also added 2,328 new billing dealers taking the total dealers to 12,148 while the retail network grew to 300+ cities. Gross margin improved to 23% from 17% at launch in Q1-FY18.
The company further stated that new Carvaan variants will be launched in the immediate future. It has projected Carvaan sales for the full fiscal to be 750k units through big marketing push.
As far as the TV business is concerned, Saregama has been producing content for Sun TV for the last 10 years and broadcasts 3-4 serials on Sun TV at any given time. The IP of all these serials is owned by Saregama.
Yoodlee Films has released four movies with nine more under production. The production house with a focus on thematic films in all languages with controlled budgets and a focus on younger digital audience. All these films are shot in 4K with sync sound and are 100-120 minutes long.