Saregama India Limited · NSE:SAREGAMA
Saregama India — Q1 FY25 Earnings Presentation
34 slides from Saregama India's earnings presentation, Aug 2, 2024
Slide 1: Exchange filing cover letter
Date: 2nd August, 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 Sym
Slide 2: Q1 FY25 Revenue from Operations grew 26% Y-o-Y to reach Rs.2053Mn
Q1 FY25 Revenue from Operations grew 26% Y-o-Y to reach Rs.2053Mn Building IP for Tomorrow Mumbai, August 2nd, 2024: Saregama, a RPSG Group company, announced its financial results for the Quarter Ended June 30, 2024 Company’s adjusted EBITDA stood at Rs.680 Mn in Q1FY25 as against Rs.623 Mn in Q1FY
Slide 3: About Saregama India Limited and RPSG Group
Avarna Jain, Vice Chairperson Saregama India, said “FY25 has begun on a strong note with our new music release topping charts across different platforms and Punjabi films also getting an excellent response from the viewers. Diversification also gained momentum with successful live events and launch
Slide 4: Saregama India Limited Quarterly Presentation Q1 FY25
SAREGAMA INDIA LIMITED | QUARTERLY PRESENTATION | Q1 FY25
Slide 5: 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 160K+ song
Slide 6: Saregama | Key Financial Metrics
SAREGAMA | KEY FINANCIAL METRICS Revenue From Operations (INR Mn) Adjusted EBITDA (INR Mn) PBT(INR Mn) 8,030 50% CAGR 2,708 20% CAGR 3,029 44% CAGR 7,366 2,481 2,712 2,044 5,806 2,230 5,447 5,215 4,420 1,519 3,566 1,451 847 2,185 786 763 603 511 389 237 159 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY
Slide 7: Global Industry Highlights
GLOBAL INDUSTRY HIGHLIGHTS 4
Slide 8: The Growth of Global Music Industry Continues
THE GROWTH OF GLOBAL MUSIC INDUSTRY CONTINUES 0.6 2.7 Global Recorded Music Revenue Grew 10.2% to reach USD28.6 Bn in 2023 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 9: Subscription Business Is Growing Globally
SUBSCRIPTION BUSINESS IS GROWING GLOBALLY
Slide 10: Indian Media & Entertainment Sector growth and Saregama's verticals
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 ARTIST / INFLUENCER INDUSTRY SIZE (2023): INR 24,000Mn FILM INDUSTRY SIZE (2023): INDUSTRY SIZE (2023): MANAGEMENT NEXT 3 YEAR
Slide 11: India's Influencer Marketing Industry expected to grow at 18% CAGR
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 preferred social media platforms, Influencer marketing is the platforms to consume content from influencers way forward for a
Slide 12: Company Overview
COMPANY OVERVIEW 9
Slide 13: Segmental Growth
SEGMENTAL GROWTH 23% CAGR 20% CAGR 5,441 * 1,159 * 4,410 1,085 1,024 * 3,585 * 2,839 702 2,361 2% 1,949 476 521 14% 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 C. Video –
Slide 14: 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 11
Slide 15: Operational Highlights
OPERATIONAL HIGHLIGHTS 12
Slide 16: Music – Licensing + Artist Management Revenue per Quarter
MUSIC – LICENSING + ARTIST MANAGEMENT REVENUE PER QUARTER (INR Mn) 190 0 1988 170 0 1691 1569 1578 150 0 1547 1509 1491 1378 1333 130 0 1274 1216 1175 1142 110 0 1004 900 919 858 700 696 500 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY
Slide 17: 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: Hamaam (HUL), Novel Jewels (Aditya Birla Group), Cool King Talc (Dabur),S
Slide 18: Chartbusters of Q1 FY25
4 QUARTERLY PRESENTATION | Q1 FY25 CHARTBUSTERS OF Q1 FY25 Y oe BOs we Hw Sie #OGeee Hee HL Lem Mem Gate tedete
Slide 19: Chartbusters of Q1 FY25 – Telugu, Malayalam
CHARTBUSTERS OF Q1 FY25 TELUGU MALAYALAM
Slide 20: 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% 0% 2% -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 21: Music: Content Creation – Film Music
MUSIC : CONTENT CREATION Film Music released in Q4 FY24 HINDI MALAYALAM PUNJABI TAMIL TELUGU Radhakrishnan Parthiban Vicky Kaushal & Karan Aujla Dabzee & Altaf Salim Badshah & Jaani & D Imman Prabhas & Disha Patani Diljit Dosanjh & Prabhas Prithviraj & Basil Ajay Hooda & Tara Sumner Anand Deverakond
Slide 22: Music: Content Creation – Non-Film Music
MUSIC : CONTENT CREATION Non-Film Music released in Q4 FY24 HINDI GUJARATI BHOJPURI DEVOTIONAL Swati Mishra Raftaar & Sukh-E Pragati Nagpal Rakesh Barot Neelkamal Singh PUNJABI Asees Kaur Arjun Tanwar Maahi Kajal Maheriya Neelkamal Singh TAMIL Anupriya Goenka & Gurdeep Mehndi Kajal Maheriya Neelkama
Slide 23: Music: Artist Management
MUSIC : ARTIST MANAGEMENT Maahi Rj Karishma Neel Salekar Ridhima Pandit Pranav Chandran Pablo Raghav 7.2M Followers 2.9M Followers 2.3M Followers 328K Followers 120K Followers 80.9K Followers Pragati Nagpal Sandeepa Dhar Aditya Shetty Viraj Ghelani Shefali Alvares Gurdeep Mehndi Arjun Tanwar 2.7M Fo
Slide 24: Music: Retail
MUSIC : RETAIL • Transition from sales through distribution channel to sales only through E-commerce and Modern Retail outlets • While the volumes and topline will shrink, profitability margins CARVAAN SALES (Units’000) improves through control of costs associated with physical 200 distribution 180
Slide 25: Video Segment: Films and TV – Upcoming releases
VIDEO SEGMENT • 2 Punjabi movies Gippy Grewal's "Shinda Upcoming releases Shinda No Papa" and the second A. Films installment of "Ni Main Sass Kuttni" were released in Q1 FY25. Both movies received a positive response from audiences. • Upcoming releases include Mammootty’s “Bazooka” and Jeetu Joseph
Slide 26: C. Digital Content
C. Digital Content VIDEO SEGMENT 22M+ 3M+ Followers & Subscribers 8M+ Followers & Subscribers 6M+ Followers & Subscribers Followers & Subscribers • Bada Sheher Choti Family, a branded web-series with Maruti, released on FilterCopy, amassing over 23 Mn views • FilterCopy IG had a strong quarter, with
Slide 27: Events: Saregama Live
EVENTS : SAREGAMA LIVE • Saregama's Live started “Dil Luminati” tour of Diljit Dosanjh in Vancouver with a record-breaking turnout of more than 50K fans. • 11 concerts were held in Canada and USA in Q1FY25 : Vancouver, Winnipeg, Edmonton, Calgary, Oakland, Chicago, Duluth, Orlando, Dallas, Washingto
Slide 28: Financial Highlights Consolidated
FINANCIAL HIGHLIGHTS CONSOLIDATED 25
Slide 29: Quarterly Financial Summary
QUARTERLY FINANCIAL SUMMARY Particulars (INR Mn) Q1 FY25 Q4 FY24 Q-o-Q Growth Q1 FY24 Y-o-Y Growth Revenue from Operations • Music and Artist Management 1,578 1,988 (21)% 1,491 6% • Video 465 634 (27)% 122 281% • Events 10 9 11% 20 (50)% Revenue from Operations 2,053 2,631 (22)% 1,633 26% Adjusted E
Slide 30: Adjusted EBIDTA to PAT
ADJUSTED EBIDTA TO PAT Q-o-Q Y-o-Y Particulars (INR Mn) Q1 FY25 Q4 FY24 Q1 FY24 FY 24 Growth Growth Revenue from Operations (A) 2,053 2,631 (22)% 1,633 26% 8,030 Total Expenses (B) 1,373 1,767 (22)% 1,010 36% 5,001 Adjusted EBIDTA (C= A-B) 680 864 (21)% 623 9% 3,029 Adjusted EBIDTA Margin (%) 33% 33
Slide 31: Balance Sheet
BALANCE SHEET As at 30th As at 31st As at 30th As at 31st Equity and Liabilities (INR Mn) Assets (INR Mn) June 2024 March 2024 June 2024 March 2024 Shareholder's fund Non-current assets (a) Property, plant and equipment 2,231 2,238 (a) Equity share capital 193 193 (b) Right-of-use assets 30 34 (b) O
Slide 32: Cash Flow Statement
CASH FLOW STATEMENT Particulars (INR Mn) Q1 FY25 FY 24 Pre-Tax Profit 507 2,708 Change in other operating activities ( including non-cash Items) 28 (400) Change in Working capital 173 (139) Taxes Paid (142) (514) Net cash generated from Operating Activities (A) 566 1,655 Spent on New Content @ (467)
Slide 33: Financial Charts (Consolidated)
FINANCIAL CHARTS (CONSOLIDATED) Revenue from Operations Music Licensing Revenue Content Charge (INR Mn) PAT (INR Mn) (Turnover) (INR Mn) (INR Mn) 900 2000 5,500 1,976 5,441 864 800 1,850 * 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 * 463 400 2,839 2,500
Slide 34: 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