Saregama India Limited · NSE:SAREGAMA
Saregama India — Q4 FY24 Earnings Presentation
37 slides from Saregama India's earnings presentation, May 23, 2024
Slide 1: Exchange cover letter under Regulation 30
Date: 23rd May, 2024 The Manager, The General Manager, Listing Department, The Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Phiroze Jeejeebhoy Towers, Block G, Bandra – Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 051 Mumbai – 400 001 Symbo
Slide 2: Q4 FY24 Total Revenue at Rs.2,810 Mn, PBT Rs 760 Mn
Q4 FY24 Total Revenue at Rs.2,810 Mn with a YoY growth of 27% and QoQ growth of 28%; PBT of Rs 760 Mn at 31% YoY growth Building IP for Tomorrow Mumbai, May 23rd, 2024: Saregama, a RPSG Group company, announced its financial results for the Quarter and Year Ended March 31, 2024 Company’s Operating R
Slide 3: About Saregama India Limited and RPSG Group
Avarna Jain, Vice Chairperson Saregama India, said “FY24 has been a significant year of transition with Saregama adopting a customer first approach, which is demonstrated by the diverse nature of content released across target segments, genres and languages. Our acquisition of digital entertainment
Slide 4: Saregama India Limited Quarterly Presentation Q4 FY24
SAREGAMA INDIA LIMITED | QUARTERLY PRESENTATION | Q4 FY24
Slide 5: RP-Sanjiv Goenka Group
RP-Sanjiv Goenka Group Too Yumm is a rapidly growing snack brand, Committed to powering millions of Indian homes captivating consumers with its flavorful and better- and businesses with reliable electricity through for-you snacking. Group turnover of its generation and distribution services. Playing
Slide 6: Saregama Strengths
SAREGAMA STRENGTHS India’s only entertainment company with IP offerings across media channels (music, films, web series, short-format and TV serials), delivery platforms (digital and physical) and business models (licensing, advertising and retail) Large intellectual property portfolio of 150K+ song
Slide 7: Saregama Key Financial Metrics
SAREGAMA KEY FINANCIAL METRICS Revenue From Operations (INR Mn) Adjusted EBITDA (INR Mn) PBT(INR Mn) 20% CAGR 8,030 50% CAGR 2,708 44% CAGR 3,029 7,366 2,481 2,712 2,044 5,806 2,230 5,447 5,215 4,420 1,519 1,451 3,566 847 2,185 786 763 603 511 389 237 159 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY17
Slide 8: Global Industry Highlights
GLOBAL INDUSTRY HIGHLIGHTS 5
Slide 9: The Growth of Global Music Industry Continues
THE GROWTH OF GLOBAL MUSIC INDUSTRY CONTINUES Global Recorded Music Revenue Grew 10.2% to reach USD28.6 Bn in 2023 0.6 2.7 0.6 0.9 2.5 0.5 2.3 0.9 0.6 0.7 1.1 0.4 0.7 0.9 0.4 2.2 0.3 0.8 0.9 0.9 0.4 2.4 1.2 1.8 1.1 0.4 2.5 0.1 1.2 1.4 2.5 0.3 2.2 19.3 1.2 1.6 0.3 0.3 0.3 0.3 0.3 2.1 17.5 0.2 3.2 1.3
Slide 10: Subscription Business is Growing Globally
Subscription Business is Growing Globally
Slide 11: Indian Media & Entertainment Sector Expected to Grow
Indian Media & Entertainment Sector is expected to grow at 10% pa on the back of Digitisation Saregama has a play in multiple verticals of the Sector MUSIC VIDEO LIVE EVENTS INDUSTRY SIZE (2023) : INR 24000 Mn FILM INDUSTRY SIZE (2023) : INR 197000 Mn INDUSTRY SIZE (2023) : INR 88000 Mn NEXT 3 YEAR
Slide 12: Global Music Industry Growing on Audio and Video Streaming
GLOBAL MUSIC INDUSTRY GROWING ON SHARE OF HINDI MUSIC IS GROWING THE THE BACK OF FASTEST GLOBALLY AUDIO AND VIDEO STREAMING Source : 2023 Luminate Year-End Music Report
Slide 13: India Already No. 2 Player Globally in Streaming
WITH JUST 200M ACTIVE AUDIO / 350M VIDEO USERS INDIA IS ALREADY NO. 2 PLAYER GLOBALLY NEXT STEP IS MONETISATION OF THIS USER BASE Top 10 Countries by volume (Global) Top 10 Countries YOY Growth (Global) Rank by overall streaming volume (total on-demand Audio+Vedio) Rank by Year-On-Year Volume Growth
Slide 14: India's Influencer Marketing Industry Growth
India’s Influencer Marketing Industry is expected to grow at 18% CAGR to reach INR 3375 Cr As 50% of the time spent on mobile phones is on Instagram and YouTube were the most social media platforms, Influencer marketing is the way forward for all the marketers. preferred platforms to consume content
Slide 15: Company Overview
COMPANY OVERVIEW 12
Slide 16: Segmental Growth
SEGMENTAL GROWTH 5,441 * 1,159 * 4,410 1,085 1,024 * 3,585 * 2,839 702 2,361 521 1,949 476 2% 14% 21% FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 * One time income of INR 84Mn in FY23, INR 97Mn in FY22, INR 155Mn in FY21 and INR 21Mn in FY20 are excluded FY24 A. Music - Licensing + A
Slide 17: Our Licensing Partners
OUR LICENSING PARTNERS Streaming Partners Broadcasting Partners Video Streaming Partners Music Music + Films & Series Music + Films & Series vO uVid v Social Media Platforms Brands Music + Films & Series Music 14
Slide 18: Operational Highlights
OPERATIONAL HIGHLIGHTS 15
Slide 19: Q4 FY24: Highest Ever Music Revenue for the Quarter
Q4 FY24 : HIGHEST EVER MUSIC REVENUE FOR THE QUARTER MUSIC – LICENSING + ARTIST MANAGEMENT REVENUE PER QUARTER (INR Mn) 1900 1988 1700 1690 1500 1547 1569 1509 1491 1378 1333 1300 1274 1216 1175 1100 1142 1004 900 919 858 700 696 500 * One time income of INR 84Mn in FY23, INR 97Mn in FY22 and INR 15
Slide 20: Music: Licensing
MUSIC : LICENSING • OTT : Progressive shift seen as paid subscription replaces free consumption. Strong revenue growth in medium to long-term despite short term pressure (due to minimum guarantees going away) • Brand Licenses: HUL Lux, Meesho, Junglee Rummy, Andrex etc. • Digital Content Licenses: V
Slide 21: Growing Faster Than Competition on YouTube Consumption
GROWING FASTER THAN COMPETITION ON YOUTUBE CONSUMPTION YoY YT Views Growth SIL Vs Competition 46% 28% 27% 8% 5% 2% 0% -5% -1% FY22 FY23 FY24 -5% -4% -6% -8% -10% -18% SIL YoY % Growth C 1 YoY % Growth C 2 YoY % Growth C 3 YoY % Growth C 4 YoY % Growth • The above growth is basis year on year YT view
Slide 22: Major Film Albums Released in FY24
MAJOR FILM ALBUMS RELEASED IN FY24 - BUILDING IP FOR TOMORROW Box Office Collection Film Language No. of Songs Production House Star Cast (Rs. Cr) Dharma Productions, Rocky Aur Rani Kii Prem Kahaani Hindi 14 Viacom18 Studios 12th Street Entertainment, Alia Bhatt Ranveer Singh 350+ Zara Hatke Zara Ba
Slide 23: Music: Content Creation
MUSIC : CONTENT CREATION Chartbuster Songs of 2023 YouTube : 100M views Club 470M+ 290M+ 240M+ 240M+ 240M+ 190M+ 130M+ 110M+ Views from all versions of the song, including lyrical, uploaded on Saregama’s official YouTube channel. Does not include UGC views Data Mining Based Predictive Models I Decen
Slide 24: Music: Content Creation - Film Music Q4 FY24
Dhanush MUSIC : CONTENT CREATION Film Music released in Q4 FY24 HINDI KANNADA TAMIL TELUGU MALAYALAM Yami Gautam & Jubin Nautiyal Thrigun Dhanush Ram Charan & Kiara Advani Mohanlal Diljit Dosanjh & A.R.Rahman Soorya GV Prakash Kumar Varun Tej Vineeth Srinivasan Ajay Devgn & A.R.Rahman Prakash Veer P
Slide 25: Music: Content Creation - Non-Film Music Q4 FY24
MUSIC : CONTENT CREATION Non-Film Music released in Q4 FY24 BHOJPURI GUJARATI HINDI DEVOTIONAL Pawan Singh & Anupma Yadav Shubham Raj Jignesh Barot Diljit Dosanjh Abhay Jodhpurkar Tuntun Yadav & Prabha Raj Neelkamal Singh Rakesh Barot Bengali KR$NA Jatinder Pal Singh Ishan Mitra Rahul Dutta Rakesh B
Slide 26: Music: Artist Management
MUSIC : ARTIST MANAGEMENT Maahi Rj Karishma Neel Salekar Saurabh Ghadge Pranav Chandran Raghav 7.1M Followers 2.9M Followers 2M Followers 333K Followers 81.6K Followers Pragati Nagpal Arjun Tanwar Sandeepa Dhar Ayush Mehra Viraj Ghelani Gurdeep Mehndi Avinash Gupta 2.7M Followers 1.2M Followers 1.2M
Slide 27: Music: Retail
MUSIC : RETAIL Carvaan Sales (units '000s) • High contribution of Carvaan Mobile resulting in unit 190 199 189 realisation coming down. Margin % maintained 170 168 156 150 149 149 130 141 139 110 112 98 90 70 50 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 FY24 FY24 Future O
Slide 28: Music: New Initiative - AI Based Music Learning App
MUSIC : NEW INITIATIVE – AI BASED MUSIC LEARNING APP RATING 4.5 4.9 25
Slide 29: Video Segment
VIDEO SEGMENT A. Films Upcoming releases • Released Mohanlal starrer “Malaikottai Vaaliban” ,Tovino Thomas starrer “Anweshippin” in Malayalam and Gippy Grewal “Warning 2” in Punjabi in Q4 FY24. • FY25 releases include second instalment of the highly successful Punjabi Comedy 'Ni Main Sass Kuttni’ an
Slide 30: Video Segment: Digital Content
VIDEO SEGMENT C. Digital Content 22M+ 3M+ 7M+ 6M+ Followers & Subscribers Followers & Subscribers Followers & Subscribers Followers & Subscribers • Released “Crushed Season 4” series from Dice of Pocket Aces on Amazon mini TV. • “FilterCopy” the biggest youth Instagram channel hit 1.2B+ views in FY2
Slide 31: Financial Highlights Consolidated
FINANCIAL HIGHLIGHTS CONSOLIDATED 28
Slide 32: Quarterly Financial Summary
QUARTERLY FINANCIAL SUMMARY Particulars (INR Mn) Q4 FY24 Q3 FY24 Q-o-Q Growth Q4 FY23 Y-o-Y Growth Revenue from Operations • Music and Artist Management 1,988 1,690 18% 1,461 36% • Video 634 252 152% 573 11% • Events 9 101 (91)% 2 350% Revenue from Operations 2,631 2,043 29% 2,036 29% Adjusted EBIDT
Slide 33: Adjusted EBIDTA to PAT
ADJUSTED EBIDTA TO PAT Q-o-Q Y-o-Y Particulars (INR Mn) Q4 FY24 Q3 FY24 Q4 FY23* FY 24 Growth Growth Revenue from Operations (A) 2,631 2,043 29% 2,036 29% 8,030 Total Expenses (B) 1,767 1,220 45% 1,419 25% 5,001 Adjusted EBIDTA (C= A-B) 864 822 5% 619 40% 3,029 Adjusted EBIDTA Margin (%) 33% 40% 30%
Slide 34: Balance Sheet
BALANCE SHEET As at 31st As at 31st As at 31st As at 31st Equity and Liabilities (INR Mn) Assets (INR Mn) March 2024 March 2023* March 2024 March 2023* Shareholder's fund Non-current assets (a) Equity share capital 193 193 (a) Property, plant and equipment 2,238 2,207 (b) Other equity 14,498 13,228
Slide 35: Cash Flow Statement
CASH FLOW STATEMENT Particulars (INR Mn) FY24 FY 23* Pre-Tax Profit 2,708 2,481 Change in other operating activities ( including non-cash Items) (400) (432) Change in Working capital (139) 116 Taxes Paid (514) (669) Net cash generated from Operating Activities (A) 1,655 1,496 Spent on New Content @
Slide 36: Financial Charts (Consolidated)
FINANCIAL CHARTS (CONSOLIDATED) Revenue from Operations Music Licensing Revenue Content Charge (INR Mn) PAT (INR Mn) (Turnover) (INR Mn) (INR Mn) 2000 900 5,500 1,976 5,441 864 1,850 800 * 1700 8,030 700 7,366 1,526 4,410 * 1400 4,000 679 600 * 5,806 3,585 1100 500 5,215 1,135 * 463 4,420 2,839 2,50
Slide 37: Disclaimer
DISCLAIMER Saregama India Ltd. Disclaimer: In evaluating our business, we consider and use non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, PAT Margin, Debt to Equity Ratio, Return on Equity, to review and assess our operating performance. These non-GAAP financial