Saregama India Limited · NSE:SAREGAMA
Saregama India — Q3 FY24 Earnings Presentation
32 slides from Saregama India's earnings presentation
Slide 1: Saregama India Limited Quarterly Presentation Q3 FY24
SAREGAMA INDIA LIMITED | QUARTERLY PRESENTATION | Q3 FY24
Slide 2: 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 3: Key Financial Metrics
SAREGAMA KEY FINANCIAL METRICS Revenue From Operations (INR Mn) Adjusted EBITDA (INR Mn) PBT(INR Mn) 7,366 50% CAGR 2,712 22% CAGR 58% CAGR 2,481 2,230 5,806 5,447 2,044 5,215 4,420 1,519 1,451 3,566 2,185 847 786 763 603 511 389 237 159 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY17 FY18 FY19 FY20 FY21 FY
Slide 4: Global Industry Highlights
GLOBAL INDUSTRY HIGHLIGHTS 4
Slide 5: Global Music Industry Growing on the Back of 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 6: 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 7: Company Overview
COMPANY OVERVIEW 7
Slide 8: Music Licensing, Music Retail, Films & Series, Live Events
MUSIC LICENSING, MUSIC RETAIL, FILMS & SERIES, LIVE EVENTS 1,574 1,024 702 476 521 Film, Events and Series, FY19 FY20 FY21 FY22 FY23 * * 4,410 21% * 3,585 * 2,839 FY23 1,949 2,361 Revenue INR 7366 Mn 61% 2,948 FY19 FY20 FY21 FY22 FY23 18% * One time income of INR 84Mn in FY23, INR 97Mn in FY22, 2,06
Slide 9: Strategic Overview
STRATEGIC OVERVIEW To be a Pure Play Content Company capitalising on the global content consumption boom driven by the ever-increasing Digitisation Through licensing to EVERY 3rd party Digital (music, video, social) and TV platform. Monetisation of Existing IP Carvaan transitioning from being a Prod
Slide 10: Path to Leadership Position in Music Segment
PATH TO LEADERSHIP POSITION IN MUSIC SEGMENT Disproportionate Share of New Content across Hindi & Regional Languages + Acquisition of Small & Mid size Music Catalogues using Cash Reserves + Better Monetisation Capability on the back of Catalogue + New Content strength Deeper artiste relationships +
Slide 11: Music Segment: Revenue from Catalogue Music Continues to Grow
MUSIC SEGMENT REVENUE FROM CATALOGUE MUSIC CONTINUES TO GROW Annual Growth in Music Licensing Revenue from Saregama owned Songs classified by Decade of Release FY19 FY20 FY21 FY22 FY23 2001 – 2020 47% 24% 18% 4% 19% 1981 – 2000 32% 18% 27% 1% 19% Till 1980 24% 23% 20% 5% 7% All revenue from derivati
Slide 12: Saregama Is No Longer a Catalogue Company
MUSIC SEGMENT SAREGAMA IS NO LONGER A CATALOGUE COMPANY 33% of Saregama’s songs were released post 2000, and they contributed to 48% of FY23 revenue FY23 150k+ songs generated Licensing Revenue INR 4,410 Mn * Era wise Breakup 2021-2023 8% 27% 2001-2020 25% 21% 1981-2000 26% 21% 1961-1980 25% 29% Til
Slide 13: Our Growth Strategy in Video Segment
OUR GROWTH STRATEGY IN VIDEO SEGMENT Pick Films and Cast primarily basis recoveries from Digital and TV licensing + Pick Web Series basis pre-licensing approval from a VoD platform Retain IP Volume of Films / Series to drive Greater emphasis on regional for Portfolio building & future Cost Optimisat
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 14
Slide 15: Operational Highlights
OPERATIONAL HIGHLIGHTS 15
Slide 16: Q3FY24: Highest Ever Music Revenue for the Quarter
Q3FY24 : HIGHEST EVER MUSIC REVENUE FOR THE QUARTER 1700 MUSIC SEGMENT REVENUE PER QUARTER (INR Mn) 1690 1569 1500 1547 1509 1491 1378 1300 1333 1274 1216 1175 1100 1142 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 FY
Slide 17: Music: Licensing
MUSIC : LICENSING • OTT : Progressive shift seen as paid subscription replaces free consumption. 3 more players (Gaana, Resso and Hungama) have moved behind paywalls. Strong revenue growth in medium to long-term despite short term pressure (due to minimum guarantees going away) • Brand Licenses: Vod
Slide 18: Growing Faster Than Competition on YouTube Consumption
GROWING FASTER THAN COMPETITION ON YOUTUBE CONSUMPTION YoY YT Views Growth SIL Vs Competition 46% 31% 28% 8% 5% 2% 2% -5% -6% -2% FY22 FY23 FY24 -5% -5% -9% -8% -18% SIL C1 C2 C3 C4 • The above growth is basis year on year YT views on respective Company Channels and does not include views generated
Slide 19: Music: Artist Management
MUSIC : ARTIST MANAGEMENT Rj Karishma Neel Salekar Saurabh Ghadge Ayush Mehra Karan Sonawane Pranav Chandran Raghav 6.8M Followers 2.9M Followers 2M Followers 1.2M Followers 1.2M Followers 333K Followers 63.1K Followers Viraj Ghelani Nitibha Kaul Disha MAdan Sakshi Shivdasani Diksha Rawat Varsha Sin
Slide 20: Major Film Albums Released in 9M FY24
MAJOR FILM ALBUMS RELEASED IN 9M 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
Slide 21: Music: Content Creation
MUSIC : CONTENT CREATION Chartbuster Songs of 2023 YouTube : 100M views Club 425M+ 260M+ 240M+ 210M+ 170M+ 170M+ 130M+ 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 Decentralis
Slide 22: Music: Content Creation - Film Music Q3 FY24
Dhanush MUSIC : CONTENT CREATION Film Music released in Q3 FY24 HINDI KANNADA TAMIL TELUGU MALAYALAM BENGALI Vidhu Vinod Chopra Prajwal Devaraj Karthi and Anu Emmanuel Daggubati Venkatesh Mohanlal & Sonalee Kulkarni Soham Chakraborty Vikrant Massey Aishwarya Rangarajan Dhanush Ajay Bhupathi Dileep &
Slide 23: Music: Content Creation - Non-Film Music Q3 FY24
MUSIC : CONTENT CREATION Non-Film Music released in Q3 FY24 BHOJPURI GUJARATI HINDI DEVOTIONAL Arvind Akela Kallu Neelkamal Singh Rakesh Barot Arijit Singh Sanjeev & Shonali Monu Albela, Shilpi Raj Neelkamal Singh Rakesh Barot Bengali Stebin Ben Ajay Bedi Akash Bhattacharya Ishan Mitra & Suchishmita
Slide 24: Music: Retail
MUSIC : RETAIL Retail: Carvaan Sales (units '000s) 199 190 • Unit Sales grew 18% Y-o-Y 170 189 168 156 150 • High contribution of Carvaan Mobile resulting in unit 130 141 139 149 realisation coming down. Margin % maintained 110 112 90 103 98 • Two new Carvaan variants @ lower price points “Sleep” 70
Slide 25: Video Segment
VIDEO SEGMENT Films Upcoming releases • Released Mohanlal starrer “Malaikottai Valiban” in Malayalam on 25th January’24 and Gippy Grewal “Warning 2” in Punjabi on 2nd February’24 in theatres. • Upcoming releases include second instalment of the highly successful Punjabi Comedy 'Ni Main Sass Kuttni’
Slide 26: Financial Highlights Consolidated
FINANCIAL HIGHLIGHTS CONSOLIDATED 26
Slide 27: Quarterly Financial Summary
QUARTERLY FINANCIAL SUMMARY Particulars (INR Mn) Q3 FY24 Q2 FY24 Q-o-Q Growth Q3 FY23 Y-o-Y Growth Revenue from Operations • Music 1,690 1,569 8% 1,547 9% • Films and Television serials 252 151 67% 214 18% • Events 101 4 2425% 58 74% Revenue from Operations 2,043 1,723 19% 1,819 12% Adjusted EBIDTA
Slide 28: Adjusted EBIDTA to PAT
ADJUSTED EBIDTA TO PAT Q-o-Q Y-o-Y Particulars (INR Mn) Q3 FY24 Q2 FY24 Q3 FY23* FY 23* Growth Growth Revenue from Operations (A) 2,043 1,723 19% 1,819 12% 7,366 Total Expenses (B) 1,220 1,003 22% 1,079 13% 4,654 Adjusted EBIDTA (C= A-B) 822 720 14% 740 11% 2,712 Adjusted EBIDTA Margin (%) 40% 42% 4
Slide 29: Balance Sheet
BALANCE SHEET As at 31st As at 31st As at 31st As at 31st Equity and Liabilities (INR Mn) Assets (INR Mn) December 2023 March 2023* December 2023 March 2023* Shareholder's fund Non-current assets (a) Equity share capital 193 193 (a) Property, plant and equipment 2,243 2,207 (b) Other equity 14,697 1
Slide 30: Cash Flow Statement
CASH FLOW STATEMENT Particulars (INR Mn) 9M FY24 FY 23* Pre-Tax Profit 1,947 2,481 Change in other operating activities ( including non-cash Items) (160) (432) Change in Working capital 289 116 Taxes Paid (328) (669) Net cash generated from Operating Activities (A) 1,748 1,496 Spent on New Content @
Slide 31: Financial Charts (Consolidated)
FINANCIAL CHARTS (CONSOLIDATED) Revenue from Operations Music Licensing Revenue Content Charge (INR Mn) PAT (INR Mn) (Turnover) (INR Mn) (INR Mn) * 1,850 4,410 679 * 7,366 1,526 3,585 * 5,806 463 * 5,447 2,839 1,135 5,215 2,361 4,420 1,949 543 179 176 435 99 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 F
Slide 32: 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