Tips Music Limited · NSE:TIPSMUSIC
Tips Music — Tips Industries — Q4 FY2023 Earnings Presentation
22 slides from Tips Music's earnings presentation, 2023
Slide 1: Investor Presentation Q4FY23
Investor Presentation Q4FY23
Slide 2: 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 3: Company Overview
Company Overview KEY FACTS Founded Year 1988 Catalogue comprises of Only listed player music in over to write off 100% Debt free company with 25 languages FY23 Content Cost of content cost in ₹ 117 cr of cash & investments available across ₹ 62.4 cr. Website the quarter of multiple platforms www.tip
Slide 4: What Makes Us Unique
What Makes Us Unique Optimising Capital Our Content Powers Allocation Global Platforms Sustainably Increasing Growing listenership & market share Increasing Content Addition Two Pronged Content Exploring new avenues Acquisition Strategy for Digital Growth
Slide 5: Optimising Capital Allocation: Reducing Equity Shares and Dividend
Optimising Capital Allocation : FY23 Payout Ratio - 60.8% (Buyback + Dividend) Consistently rewarding shareholders through Buybacks & Dividends Investment in content (₹ Crs) (Crs) -26% 1.73 Reducing Equity Shares* 1.60 1.54 1.43 1.30 1.28 76.6 64.6 62.4 43.5 2009 2010 2013 2016 2020 2023 32.1 (₹ Crs
Slide 6: Sustainably Increasing Market Share: Revenues Doubled in Last 2 Years
Sustainably Increasing market share: Revenues Doubled in Last 2 Years Music Sector* Revenues (₹ Crs) (₹ Crs) 2,500 187 2,200 +12% 1,900 136 +34% 1,500 1,500 1,400 1,300 98 91 67 43 32 CY17 CY18 CY19 CY20 CY21 CY22 CY23E # FY17 FY18 FY19 FY20 FY21 FY22 FY23 Tips Industries outperformed sectoral growt
Slide 7: Two Pronged Content Acquisition Strategy
Two Pronged Content Acquisition Strategy PRODUCE CONTENT COST STRATEGY o To introduce promising singers (Tips) is in our DNA 100% of content cost is written off from profit & loss account in the o We have a strong A&R team which engages with quarter of release artistes across genres and languages wh
Slide 8: Our Content Powers Global Platforms
Our Content Powers Global Platforms Digital Partners Sync Deals Broadcast Partners 8
Slide 9: 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 112.7 +55% revenue 59.6 38.5 19.3 26.6 New Songs Added 240 FY19 FY20 FY21 FY22 FY23 New releases in Q4FY23 276
Slide 10: Blockbuster Streaming Songs
Blockbuster Streaming Songs Some of our songs with more than 100 million views/streams 10
Slide 11: Financial Performance
Financial Performance
Slide 12: Business Performance
Business Performance Revenue (Rs. in Crs) Op. EBITDA (Rs. in Crs) Op. EBITDA Margins (%) +52% +30% -891 bps 52.0 26.4 59.6 50.7 20.3 34.1 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Revenue (Rs. in Crs) Op. EBITDA (Rs. in Crs) Op. EBITDA Margins (%) +38% +18% -904 bps 186.8 101.9 63.6 86.2 54.6 135.6
Slide 13: Industry Leading Financial Performance
Industry Leading Financial Performance (₹ Crs) Revenue EBIT & EBIT Margin* 84.0% 71.5% 78.9% 80.5% 63.9% 55.1% 187 106 +24% 89 +34% 136 77 73 98 91 48 67 36 43 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 ROIC (Post Tax)# ROE# 318% 63% 64% 48% 167% 82% 15% 8% 1% 5% 4% -11% FY18 FY19 F
Slide 14: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. in Crs) Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue From Operations 52.0 34.1 52% 51.0 2% 186.8 135.6 38% Content Cost 19.0 8.6 120% 18.7 1% 62.4 32.1 95% Employee Benefits Expenses 2.0 1.6 1.9 7.3 6.3 Other Expenses 4.7 3.6 4.5 15.1 11.0 Op. EBI
Slide 15: Balance Sheet
Balance Sheet Equity & Liabilities (₹ in Cr) Mar’23 Mar’22 Assets (₹ in Cr) Mar’23 Mar’22 Equity Share Capital 12.8 13.0 Non-Current Assets Other Equity 123.3 89.4 Property, plant and equipment 5.0 6.3 Total Equity 136.2 102.4 Investment Property 0.1 0.2 Non-Current Liabilities (i) Investments 0.0 0
Slide 16: Cash Flow Statement
Cash Flow Statement Cash Flow Statement (Rs. Crs.) Mar-23 Mar-22 Cash Flow from Operating Activities Profit before Tax 105.6 88.6 Adjustment for Non-Operating Items -2.6 -1.4 Operating Profit before Working Capital Changes 103.1 87.2 Changes in Working Capital 10.2 -36.0 Cash Generated from Operatio
Slide 17: Music – A Digital Journey
Music – A Digital Journey
Slide 18: Music Is The Most Valuable Content
Music Is The Most Valuable Content Music Revenue Sources 2.4% 4.3% 9.4% NEWS TV SERIALS WEB SERIES 48.3% FILMS MUSIC CY2022 18.7% Content that can be monetized multiple times naturally commands greater economic value 19.2% Music ranks at the top of the content pyramid when ranked on repeated monetiz
Slide 19: 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 29,784 crore by the end of (₹ Crs) 2022, up from Rs 21,353 crore in the previous year. It has grown at a rate of 51,110 39% This swift growth can be attributed to
Slide 20: Digital Advertising will Dominate Media Spending
Digital Advertising will Dominate Media Spending Advertising spends on different media Advertising spends across various media (%) - Forecast 45 45 42 42 Digital 40 40 40 40 39 Radio Cinema 37 OOH 35 2.0% 35 34 Television 2.0% 31 Print 0.3% 30 29 29 21.0% 26 26 Television 40.0% 25 23 20 21 20 19 17
Slide 21: Few Industry Reports
Few Industry Reports dentsu IFPI FICCI Ericsson Digital Advertising in India Global Music Report EY Media & Entertainment Mobility Report Report 2023 21
Slide 22: Thank You
Thank You Company Details: Investor Relations Advisors: Tips Industries Limited Orient Capital (a division of Link Group) Mr. Nikunj Jain | Mr. Amar Yardi CIN: L92120MH1996PLC099359 +91 9769060608 | +91 7045121239 nikunj.jain@linkintime.co.in| amar.yardi@linkintime.co.in Email id: investorrelations@