Tips Music Limited · NSE:TIPSMUSIC
Tips Music — Investor Presentation (March 2025)
25 slides from Tips Music's investor presentation, Mar 22, 2025
Slide 1: Exchange filing cover letter: Corporate Presentation
March 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: TIPSMUSIC
Slide 2: Tips Music Limited Corporate Presentation
MUSIC… THE RHYTHM OF LIFE TIPS MUSIC LIMITED Corporate Presentation
Slide 3: Industry Snapshot
eng The Must Have HITS Industry Snapshot
Slide 4: Music Industry Evolution
Music Industry Evolution Every New Wave Of Technology Has Led To Rising Revenues & Profits 1. Origins of Music: 3. The Vinyl Revolution (1948): 5. The Internet Era (1990s-2003): 7. The New Business Model • Music is one of the oldest forms of • Vinyl records facilitated music • Introduced new technol
Slide 5: 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 which 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 6: India Music Investment Opportunity (1/2)
India Music Investment Opportunity (1/2) Global Total Music Streaming Volume ( Audio & Video) Global Music Label Revenues (trillion streams) (USD bn) +34% 2023 28.6 2023 7.1 India 15% Vol Mkt 85% 0.3 India 1% Val Mkt 99% 1.0 share share 5.3 81% 0.6 World ex. India 28.3 World ex. India 6.1 4.7 2022 2
Slide 7: India Music Investment Opportunity (2/2)
India Music Investment Opportunity (2/2) CRBT Revenue in 2011 Rs. 3,600 cr (US$ 800 mn) Like to Like Basis Subscription Revenue of Rs. 7,824 cr. p.a. (US$ 900 mn) 100.0 7,824.0 100.0 65.2 30.0 Paid Subscribers (mn) Monthly Subscription Subscription 2011 2011 Rate (Rs.) Revenues (Rs. Cr) Paid Subscri
Slide 8: Music Consumption Trends
Music Consumption Trends India Smartphone subscription & data traffic India Paying Music OTT subscription Average music listening hours per week (mn) 7 870 880 730 800 29 5 25 20 3 26.7hrs 16 2 Indians in 16- 2020 2021 2022 2023 2020 2021 2022 2023 44 years age Smartphones Subscription (mn) 24.4hrs
Slide 9: 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 2023, up from Rs 29,784 crore in the previous year. It is estimated to grow at (₹ Crs) a CAGR of 29%. 62,045 Ongoing enhancements in dig
Slide 10: Digital Advertising will Dominate Media Spending in India for the Next Few Years
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 2.0% 2.0% 44 45 42 42 0.3% 20.0% 40 39 39 32.0% 35 35 32 29 29 30 28 26 25 25 23 Television 20 21 20 20 18
Slide 11: Business Model
Business Model Music Creators Film Producer Music Label Streaming platforms Business Model Music creators include Film producers use these Music labels owns the IPR Streaming platforms licence lyricists, composers, and compositions in films and sell (Intellectual Property Rights) the content and mak
Slide 12: Company Snapshot
eng The Must Have HITS Company Snapshot
Slide 13: The Promoters’ Journey
The Promoters’ Journey Expansion into New Beginnings & Major Shift to Film Electronics Retail (1972) Family Division (1980s) Music Rights (1988) Family Background & • The family started an Transition to Music • In 1981- First division of Initial years of recording • The Higher profitability electron
Slide 14: The Promoters’ Journey
The Promoters’ Journey Venture into Film Technological Disruption The 2020s Production (1993) (Early 2000s) • Began co-producing • The rise of MP3 & Piracy First Major Success Market Leadership CRBT & OTT Platforms • TIPS demerged its film films to learn the craft led to collapse of the (1991-1992)
Slide 15: TIPS at a Glance
TIPS at a Glance KEY FACTS Founded Year 1988 Catalogue comprises of music in over Only listed player to expense off Debt free company with 25 languages ₹ 259 cr of cash & 100% of content cost in the investments as on available across multiple platforms globally quarter of release Q3FY25 Website www.
Slide 16: Optimising Capital Allocation: Buybacks & Dividends
Optimising Capital Allocation: Consistently rewarding shareholders through Buybacks & Dividends Q3FY25 – Interim Dividend of Rs 3 per share amounting to Rs 38.35 Cr Total Payout for 9MFY25 - Rs 136.09 Cr (including buyback) Reducing Equity Shares* (Crs) 275 259 89 77 17.31 -26% 15.96 62 15.36 56 14.
Slide 17: Sustained Market Share Growth: Revenues Surged 1.8x in Last 2 Years
Sustained Market Share Growth: Revenues Surged 1.8x in Last 2 Years Music Sector* Revenues (₹ Crs) (₹ Crs) 3,700 242 232 +14% 3,200 2,800 +39% 187 2,400 2,200 136 1,900 91 CY21 CY22 CY23 # CY24E # CY25E # CY26E# FY21 FY22 FY23 FY24 9M FY25 Tips Music outperformed sectoral growth by 2.8x over the pas
Slide 18: 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 profitable opportunities 100% of content cost is expensed off from profit & loss account in the quarter of release o Our understanding of music and its creative process
Slide 19: Our Content On Global Platforms
Our Content On Global Platforms Digital Partners Sync Deals Broadcast Partners 18
Slide 20: Growing listenership & Increasing Content Addition
Growing listenership & Increasing Content Addition Evergreen & Rich content of over 32,000 songs across genres, YouTube Views (in. Bn) languages & decades giving us high visibility of music revenue 193.9 New Songs Added 116 +64% New releases in Q3FY25 112.7 896 59.6 733 26.6 38.5 338 FY20 FY21 FY22
Slide 21: Upcoming Music Releases
Upcoming Music Releases Boney Kapoor’s No Entry Mein Entry Directed by Anees Bazmee Click here 20
Slide 22: 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 23: 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 22
Slide 24: 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 EPS# ROE# 9.9 81% +45% 63% 64% 5.9 48% 5.0 3.3 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Note *Segmental EBIT before allocat
Slide 25: Thank You
Company Details: Investor Relations Advisors: Tips Music Limited Orient Capital (a division of Link Group) CIN: L92120MH1996PLC099359 investorrelations@tips.in Mr. Nikunj Jain | Ms. Mamta Nehra Email id: investorrelations@tips.in +91 9769060608 | +91 9987903500 Thank You nikunj.jain@linkintime.co.in