Sprint Telefilms generated Rs 5.2 cr from TV content production in FY18
MUMBAI: Production company Sprint Telefilms has generated Rs 5.2 crore revenue from the TV content production division. The division accounted for 22% of the total revenues in FY2018.
The company had ventured into TV content production in Q3 FY2017 and produced 4 TV shows in FY2018.
The same has partially offset the decline in revenues from advertising and marketing division. The revenue from this segment is expected to increase in the medium term with new shows in the pipeline.
Sprint’s long-term rating has been reaffirmed at ICRA BB to the Rs. 6 crore cash credit and Rs. 1 crore unallocated limits. The outlook on the long-term rating is ‘Stable’.
The company has a small scale of operations with revenues of Rs. 24.01 crore in FY2018, limiting its financial flexibility. The company witnessed 47% revenue de-growth in FY2017 owing to a decline in revenues from its flagship customers like SIIMA and CCL. However, revenues from TV content production supported 60% revenue growth in FY2018.
The company generated a majority of its revenues from flagship events and customers like CCL, SIIMA, Narayana Group of Institutions and Ramakrishna Housing Pvt Ltd over the years. The company has a high customer concentration with the top-3 customers accounting for 61% of the total revenues in FY2018. However, this decreased from 80% in FY2017 owing to diversification into TV production.
Sprint Telefilms was incorporated in 2009 as a private limited company in Hyderabad, Telangana. The company is primarily involved in television, print, and outdoor advertising and is one of the marketing partners for events like South Indian International Movie Awards (SIIMA) and Celebrity Cricket League (CCL).
The company is promoted by Mr. A. Thirumal Reddy who is also one of the directors in Celebrity Cricket League Private Limited.