Saregama sees over three-fold net profit growth in Q2

MUMBAI: Music label Saregama’s consolidated net revenue for the quarter ended 30 September has increased over three times to Rs 15 crore compared to Rs 4.5 crore in the same quarter last year.

The company’s EBITDA without SAR has expanded 76% to Rs 23.2 crore from Rs 13.2 crore in the previous fiscal. EBITDA margin stood at 17% compared to 16% in the previous fiscal.

Revenue from operations jumped 64% to Rs 138.4 crore from Rs 84.5 crore. Total expenses zoomed 58% to Rs 117.5 crore from Rs 74.6 crore.

The revenue rise was on the back of strong performance from the music segment. Music revenue witnessed 73% growth to Rs 126.4 crore from Rs 73.2 crore. TV & films revenue also grew by 6% to Rs 12 crore from Rs 11.3 crore.

The company said it has sold 229,000 units of Carvaan in Q2-FY19 registering a jump of 40% over the previous quarter. The company notched 28% YoY in B2B revenues fuelled by growing market share in over the top (OTT) business, the impact of new movie song releases and higher publishing deal renewals.

Saregama stated that OTT will continue double-digit growth while Telecom will continue to decline. The acquisition of new music content is also expected to start helping publishing business to grow further.

In this quarter, Saregama’s ‘Brij Mohan Amar Rahein’ and ‘Kuch Bheege Alfaaz’ released on Netflix as an original film. Going forward in Q3, Yoodlee Films’ ‘Music Teacher’ will also premiere on digital as the company is close to signing an output deal with a leading player. The company stated that there is a greater interest from new buyers as first few movies got sold.

On the television business, new show ‘Roja’ became top-rated show in the afternoon band. Sun TV’s ‘Valli’ is in its sixth year of the telecast and is the longest running serial. The Kannada show ‘Jo Jo Laali’ completed 400 episodes. The company stated that liquidation of South TV’s banked inventory will happen over next two quarters.

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