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News: Saregama reported mixed bag numbers. Revenues were up 10% YoY, at ₹ 204.3 crore. Music segment was up ~9.2% YoY at ₹ 157 crore. Carvaan sales volumes were up ~18% YoY to 1.99 lakh units with realisations being down due to mix, resulting in decline in Carvaan revenues YoY, while licencing revenues would have witnessed double digit revenue growth, as per our understanding. The TV & Films segment revenues were up 30% YoY at ₹ 35.3 crore, also aided by consolidation of newly acquired Pock Aces (partially during Q3). EBITDA was up 4.8% YoY to ₹ 65.6 crore with EBITDA margin at 32.1%, down 163 bps YoY, given the revenue mix. Consequent PAT was at ₹ 52.2 crore was flat (down 0.6% YoY).
Views: Revenue momentum has seen some interim moderation given the impact of few OTT apps going behind paywall. We expect digital monetisation to provide sustained growth momentum along with new releases which should drive strong revenues from FY25 onwards. Synergy from Pocket Aces and accelerated opportunity fructification in new areas like Web Series, Artist management, etc., can provide further growth leg.
Impact: Neutral