- 05 Aug 2024
- ICICI Securities
Saregama Q1FY25: Weak performance
SAREGAMA - 502 Change: -3.10 (-0.61 %)News: Saregama reported weak performance on margins and earnings front. Revenues were up 10% YoY, at ₹ 205.3 crore, largely boosted from new acquisition consolidation. Music segment was down ~4.8% YoY at ₹ 117 crore. Carvaan sales volumes were down 4.7% YoY to 1.42 lakh units, while licencing revenues would have been flattish, as per our understanding. The TV & Films segment revenues were up 343% YoY at ₹ 63.3 crore, also aided by consolidation of Pocket Aces. EBITDA was up 2.8% YoY to ₹ 51.3 crore with EBITDA margin at 25.1%, down 557 bps YoY, given the revenue mix. Operating margins (excluding content costs) was also dismal and down 556 bps YoY. Consequent PAT was at ₹ 26.9 crore was down 15.1% YoY.
Views: We expect digital monetisation to provide sustained growth momentum along with new releases which should drive growth ahead. Synergy from Pocket Aces and accelerated opportunity fructification in new areas like Web Series, Artist management, etc., can provide further growth leg. Nonetheless, we await management commentary on licensing revenues weakness and margins decline and outlook ahead.
Impact: Negative