Tips Music Limited · NSE:TIPSMUSIC
Tips Music — Q3 FY2025 Earnings Presentation
26 slides from Tips Music's earnings presentation, Jan 22, 2025
Slide 1: Submission of Investor Presentation to exchanges
January 22, 2025 To, To, Listing Department Listing Department BSE Limited National Stock Exchange of India Limited P.J Towers, Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Fort, Mumbai – 400 001 Bandra Kurla Complex, Bandra (E), Mumbai – 400 050 Scrip Code: 532375 Symbol: TIPSMUS
Slide 2: Investor Presentation Q3FY25
Investor Presentation Q3FY25
Slide 3: Safe harbor
Safe harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Tips Music Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities
Slide 4: Company Overview
Company Overview KEY FACTS Founded Year 1988 Catalogue comprises of music in over Only listed player to expense off Debt free company with 25 languages 100% of content cost in the ₹ 259 cr of cash & available across multiple investments platforms globally quarter of release Website www.tips.in Indus
Slide 5: What Makes Us Unique
What Makes Us Unique Optimising Capital Allocation Optimising Capital Allocation Our Content Global Platforms Powers Our Content Powers Global Platforms Sustainably Increasing market share Sustainably Increasing market share Growing listenership Increasing Content Addition Growing listenership & Inc
Slide 6: Optimising Capital Allocation: Total Payout to shareholders in FY25
Optimising Capital Allocation : Total Payout to shareholders in FY25 Rs 136.09 Cr Consistently rewarding shareholders through Buybacks & Dividends 275 259 (Crs) Reducing Equity Shares* 89 77 17.31 -26% 62 15.96 56 15.36 47 14.32 40 41 33 12.97 12.84 12.78 19 21 12 13 10 14 13 5 2 4 22 0.5 2 5 472 22
Slide 7: Sustainably Increasing market share: Revenues Surged 1.8x in Last 2 Years
Sustainably Increasing market share: Revenues Surged 1.8x in Last 2 Years Music Sector* Revenues (₹ Crs) (₹ Crs) 3,700 242 232 +14% 2,800 +39% 187 2,400 2,200 136 1,900 91 CY21 CY22 CY23 # CY24E# CY26E # FY21 FY22 FY23 FY24 9M FY25 Tips Music outperformed sectoral growth by 2.8x over the past 4 year
Slide 8: Two Pronged Content Acquisition Strategy
Two Pronged Content Acquisition Strategy PURCHASE CONTENT COST STRATEGY o We purchase music rights from other producers when we see 100% of content cost is expense off from profit & loss account in profitable opportunities the quarter of release o Our understanding of music and its creative process
Slide 9: Our Content Powers Global Platforms
Our Content Powers Global Platforms Digital Partners Sync Deals Broadcast Partners 8
Slide 10: Upcoming Music Releases
Upcoming Music Releases Boney Kapoor’s No Entry Mein Entry Directed by Anees Bazmee Click here 9
Slide 11: Subscriptions are becoming more acceptable in India
Subscriptions are becoming more acceptable in India Spotify India Subscription Revenue up by 90% and Ad revenue rose by 114% for FY24 According to Spotify India's 2024 advertising deck, the platform now boasts 70 million monthly active users who spend an average of 1.44 hours daily streaming music 5
Slide 12: Growing listenership & Increasing Content Addition
Growing listenership & Increasing Content Addition Evergreen & Rich content of over 31,000 songs across Annual YouTube Views (in. Bn) genres, languages & decades giving us high visibility of 193.9 music revenue +64% 112.7 59.6 New Songs Added 26.6 38.5 116 FY20 FY21 FY22 FY23 FY24 New releases in Q3
Slide 13: Financial Performance
Financial Performance
Slide 14: Summary of Last 10 Quarters
Summary of Last 10 Quarters (Crs) Cumulative 80.6 80.0 77.7 (10 quarters) 73.9 70.0 64.8 63.3 60.9 Revenue 60.0 626.3 51.0 52.0 52.6 49.6 48.2 50.0 43.6 44.2 39.5 40.0 34.7 Content Cost 26.8 151.4 25.8 30.0 20.7 20.2 20.0 18.4 23.9 18.7 14.7 13.8 14.6 17.2 19.0 12.2 12.7 10.0 Profit after Tax 4.7 32
Slide 15: Summary of Last 5 Years
Summary of Last 5 Years (Crs) 241.6 232.2 186.8 135.6 136.0 127.2 90.5 +66.2% 76.5 64.6 43.5 55.6 41.1 62.4 32.7 13.2 FY21 FY22 FY23 FY24 9M FY25 Content Cost Revenue PAT Revenue PAT 14
Slide 16: Business Performance
Business Performance (₹ Crs) Revenue Op. EBITDA Op. EBITDA Margins (%) +20% +458 bps +28% 77.7 71.6 55.6 67.0 64.8 43.4 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Revenue Op. EBITDA Op. EBITDA Margins (%) + 106 bps +30% +32% 232.2 169.4 71.9 73.0 178.3 128.3 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25
Slide 17: Industry Leading Financial Performance
Industry Leading Financial Performance (₹ Crs) Revenue EBIT & EBIT Margin* 80.5% 63.9% 55.1% 66.8% 242 171 +39% +33% 187 106 136 89 73 91 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ROE# EPS# 81% 9.9 63% 64% +45% 48% 5.9 5.0 3.3 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Note *Segmental EBIT before allocat
Slide 18: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. in Crs) Q3FY25 Q3FY24 Y-o-Y Q2FY25 Q-o-Q 9MFY25 9MFY24 Y-o-Y Revenue From Operations 77.7 64.8 20% 80.6 -4% 232.2 178.3 30% Content Cost 14.6 14.7 -1% 13.8 5% 41.1 31.6 30% Employee Benefits Expenses 3.0 2.6 2.8 8.6 6.6 Other Expenses 4.5 4.1 4.5 13.1 11.8 Op
Slide 19: Balance Sheet
Balance Sheet Equity & Liabilities (₹ in Cr) Sep’24 Mar’24 Assets (₹ in Cr) Sep’24 Mar’24 Equity Share Capital 12.8 12.8 Non-Current Assets Other Equity 186.4 166.7 Property, plant and equipment 7.3 7.8 Total Equity 199.1 179.5 Investment Property 0.1 0.1 Non- Current Liabilities Capital Work in Pro
Slide 20: Cash Flow Statement
Cash Flow Statement Cash Flow Statement (Rs. Crs.) Sept-24 Mar-24 Cash Flow from Operating Activities Profit before Tax 122.8 170.5 Adjustment for Non-Operating Items -8.7 -6.1 Operating Profit before Working Capital Changes 114.1 164.5 Changes in Working Capital -39.9 112.4 Cash Generated from Oper
Slide 21: Music – A Digital Journey
Music – A Digital Journey
Slide 22: Music Is The Most Valuable Content
Music Is The Most Valuable Content Global Music Revenue Sources 2.2% 3.2% 9.5% NEWS TV SERIALS WEB SERIES FILMS MUSIC 48.9% CY2023 17.8% Content that can be monetized multiple times naturally commands greater economic value 18.5% Music ranks at the top of the content pyramid when ranked on repeated
Slide 23: Digital Advertising – Key Driver of Indian Music Industry
Digital Advertising – Key Driver of Indian Music Industry Indian Digital Ad Industry The Indian digital advertising industry stood at Rs 40,685 crore by the end of (₹ Crs) 2023, up from Rs 29,784 crore in the previous year. It is estimated to grow at 62,045 a CAGR of 29%. Ongoing enhancements in dig
Slide 24: Digital Advertising will Dominate Media Spending in India
Digital Advertising will Dominate Media Spending in India for the Next Few Years Advertising spends on different media Advertising spends across various media (%) - Forecast 55 55 Digital 50 50 Radio Cinema OOH 45 44 2.0% 42 42 40 Print 2.0% 40 39 37 0.3% Television 35 20.0% 35 34 32.0% 30 29 29 26
Slide 25: Few Industry Reports
Few Industry Reports Digital Advertising in India dentsu Global Music Report IFPI EY Media Entertainment FICCI Report 2024 Ericsson Mobility Report EMR dentsu IFPI FICCI EMR Digital Advertising in India Global Music Report EY Media & Entertainment Ericsson Mobility Report 2024 Report 24
Slide 26: Thank You
Thank You Company Details: Investor Relations Advisors: Tips Music Limited Orient Capital (a division of Link Group) Mr. Nikunj Jain | Ms. Mamta Nehra CIN: L92120MH1996PLC099359 +91 9769060608 | +91 9987903500 investorrelations@tips.in nikunj.jain@linkintime.co.in| mamta.nehra@linkintime.co.in Email