Tips Music Limited · NSE:TIPSMUSIC
Tips Music — Tips Industries — Q4 & FY24 Earnings Presentation
24 slides from Tips Music's earnings presentation, Apr 29, 2024
Slide 1: Submission of Presentation of Analysts/Investors Meeting
April 29, 2024 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: TIPSINDLT
Slide 2: Investor Presentation Q4 & FY24
Investor Presentation Q4 & FY24
Slide 3: Safe harbor
Safe harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Tips Industries 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 secur
Slide 4: Company Overview
Company Overview KEY FACTS Founded Year 1988 Catalogue comprises of music in over Only listed player to write off Debt free company with 25 languages 100% of content cost in the ₹ 275 cr of cash & available across multiple investments platforms globally quarter of release Website www.tips.in Industr
Slide 5: What Makes Us Unique
What Makes Us Unique Optimising Capital Allocation Our Content Powers Global Platforms Sustainably Increasing market share Growing listenership & Increasing Content Addition Two Pronged Content Acquisition Strategy
Slide 6: Optimising Capital Allocation: FY24 Dividend Payout Ratio 60.6%
Optimising Capital Allocation : FY24 Dividend Payout Ratio – 60.6% Consistently rewarding shareholders through 300 Buybacks & Dividends 275 250 (Crs) Reducing Equity Shares* 77 200 62 -26% 56 1.73 40 150 33 1.60 1.54 19 21 1.43 11 12 13 14 13 10 100 3 5 4 2 2 0.5 2 5 4 7 2 6 1.30 1.28 2 2 2 2 0.3 2
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 +14% 2,800 +39% 187 2,400 2,200 136 1,900 91 CY21 CY22 CY23 # CY24E# CY26E # FY21 FY22 FY23 FY24 Tips Industries outperformed sectoral growth by 2.8x over the past 4 years *Sour
Slide 8: Two Pronged Content Acquisition Strategy
Two Pronged Content Acquisition Strategy PRODUCE CONTENT COST STRATEGY o To introduce promising singers (Tips) is in our DNA o We have a strong A&R team which engages with artistes across genres 100% of content cost is written off from profit & loss account in and languages which allows us to promot
Slide 9: Our Content Powers Global Platforms
Our Content Powers Global Platforms Digital Partners Sync Deals Broadcast Partners 8
Slide 10: Most Trending Album - Crew
Most Trending Album - Crew eng The Must Have HITS
Slide 11: Growing Listenership & Increasing Content Addition
Growing listenership & Increasing Content Addition Evergreen & Rich content of over 30,000 songs across YouTube Views (in. Bn) genres, languages & decades giving us high visibility of music 193.9 +64% revenue 112.7 59.6 New Songs Added 26.6 38.5 179 New releases in Q4FY24 FY20 FY21 FY22 FY23 FY24 89
Slide 12: Financial Performance
Financial Performance
Slide 13: Summary of Last 4 Years
Summary of Last 4 Years (Crs) 241.6 186.8 135.6 Significant Jump 127.2 in Profits on a YoY basis in FY24 90.5 +66.2% 76.5 64.6 43.5 55.6 62.4 32.7 13.2 FY21 FY22 FY23 FY24 Content Cost Revenue PAT 12
Slide 14: Business Performance
Business Performance (₹ Crs) Revenue Op. EBITDA Op. EBITDA Margins (%) +22% +14% -297 bps 63.3 50.7 47.7 30.2 52.0 26.4 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Revenue Op. EBITDA Op. EBITDA Margins (%) +29% +55% 1103 bps 241.6 158.5 65.6 54.6 186.8 101.9 FY23 FY24 FY23 FY24 FY23 FY24 13
Slide 15: 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 16: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. in Crs) Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Revenue From Operations 63.3 52.0 22% 64.8 -2% 241.6 186.8 29% Content Cost 23.9 19.0 26% 14.7 63% 55.6 62.4 -11% Employee Benefits Expenses 4.3 2.0 2.6 10.9 7.3 Other Expenses 4.9 4.7 4.1 16.7 15.1 Op.
Slide 17: Balance Sheet
Balance Sheet Equity & Liabilities (₹ in Cr) Mar’24 Mar’23 Assets (₹ in Cr) Mar’24 Mar’23 Equity Share Capital 12.8 12.8 Non-Current Assets Other Equity 166.7 123.3 Property, plant and equipment 7.8 5.0 Total Equity 179.5 136.2 Investment Property 0.1 0.1 Non-Current Liabilities Capital Work in Prog
Slide 18: Cash Flow Statement
Cash Flow Statement Cash Flow Statement (Rs. Crs.) Mar-24 Mar-23 Cash Flow from Operating Activities Profit before Tax 170.5 105.6 Adjustment for Non-Operating Items -6.3 -2.6 Operating Profit before Working Capital Changes 164.2 103.1 Changes in Working Capital 112.6 10.2 Cash Generated from Operat
Slide 19: Music – A Digital Journey
Music – A Digital Journey
Slide 20: 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 21: 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 22: 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% 29 29 30 26
Slide 23: Few Industry Reports
Few Industry Reports dentsu IFPI FICCI EMR Digital Advertising in India Global Music Report EY Media & Entertainment Ericsson Mobility Report 2023 Report 22
Slide 24: Thank You
Thank You Company Details: Investor Relations Advisors: Tips Industries Limited Orient Capital (a division of Link Group) Mr. Nikunj Jain | Mr. Viral Sanklecha CIN: L92120MH1996PLC099359 +91 9769060608 | +91 9987123158 nikunj.jain@linkintime.co.in| viral.sanklecha@linkintime.co.in Email id: investor