Saregama India Limited , India's oldest music label and the country's leading entertainment company, has reported a robust financial performance. The company's revenue from operations soared by 46% year-over-year to INR 11,713.00 crore, up from INR 8,030.00 crore, according to its latest corporate presentation.

Strong Growth Across Segments

The music licensing and artist management segment emerged as the primary revenue driver, contributing 52% of the total revenue at INR 6,104.00 crore. This segment witnessed a significant growth of 12% compared to the previous year.

Saregama's video segment, which includes films, digital series, TV, and short-format content, saw an impressive 66% year-on-year growth, reaching INR 1,920.00 crore. The company's newly launched events business also made a substantial contribution, generating INR 2,852.00 crore in revenue.

Profitability and Financial Metrics

Despite the strong top-line growth, the company's adjusted EBITDA grew at a more modest rate of 18% to INR 3,566.00 crore. The adjusted EBITDA margin compressed to 30% from 38% in the previous year, likely due to increased investments in content and new business initiatives.

Profit after tax (PAT) increased by 3% to INR 2,043.00 crore, with diluted earnings per share (EPS) rising to INR 10.61 from INR 10.27. The company maintained a strong balance sheet with zero debt and a return on equity (ROE) of 13%.

Content Investment and IP Portfolio

Saregama significantly ramped up its content investments, with content charges increasing by 48% to INR 1,282.00 crore. This strategic move aligns with the company's focus on expanding its intellectual property (IP) portfolio across various entertainment segments.

The company now boasts a vast IP portfolio comprising:

• Over 170,000 songs
• 70+ films
• 45+ digital series
• 10,000+ hours of television content

Saregama's music catalog spans multiple languages, with Hindi, Tamil, and Telugu being the primary contributors.

Digital Footprint and Monetization

Saregama's digital presence continued to grow, with its YouTube subscriber base expanding to 149 million, up from 107 million. The company's music garnered an impressive 517 billion views on YouTube, a 39% increase from the previous year.

The company is actively monetizing its content across various digital platforms, including:

• Music streaming services
• Video OTT platforms
• Social media

Saregama's strategy of creating derivatives of catalog songs for younger audiences has paid off, with 56% of licensing revenue coming from songs released in the 21st century.

Diversification and Future Outlook

Saregama's diversification into live events and artist management through its acquisition of Pocket Aces has started showing results. The company now manages over 230 artists and influencers, positioning itself to capitalize on the growing influencer marketing industry in India.

Looking ahead, Saregama has announced a robust pipeline of film and music releases across multiple languages, indicating its commitment to content creation and regional expansion.

Management Commentary

While specific management quotes were not provided, the corporate presentation reflects a strategy focused on leveraging India's digital boom and the growing demand for diverse entertainment content. The company appears well-positioned to capitalize on the expanding Indian media and entertainment sector, which is expected to grow at 7% annually, driven by increased digitization and content consumption.

As Saregama continues to evolve from a traditional music label to a comprehensive entertainment company, its strong financial performance and strategic initiatives set a solid foundation for future growth in the dynamic Indian entertainment landscape.

Saregama India Ltd, a leading entertainment IP company, has made a significant move in the regional music industry by acquiring the Haryanvi music catalogue of NAV Records Pvt. Ltd. This strategic acquisition has not only expanded Saregama's regional portfolio but also boosted its digital presence, leading to a positive market response.

Acquisition Details

The deal includes over 6,500 tracks spanning various genres, including Haryanvi, Punjabi, Ghazals, Devotional, and Indie Pop. Notably, the acquisition also encompasses popular YouTube channels like NAV Haryanvi and Nupur Audio, which boast a combined subscriber base of over 24 million.

Key Highlights of the Acquisition

• Diverse Content: The acquired catalogue features a wide range of music, strengthening Saregama's position in regional content.
• Digital Footprint: The inclusion of popular YouTube channels significantly enhances Saregama's digital presence.
• Market Leadership: This move cements Saregama's dominant position in the Haryanvi music market, a segment where the company previously lacked a strong foothold.

Notable Tracks in the Acquired Catalogue

The acquisition brings several hit songs under Saregama's umbrella, including:

Future Collaborations

As part of this deal, Saregama and NAV Records will collaborate on creating new Haryanvi and Punjabi content, further expanding their regional music offerings.

Market Response

The news of this acquisition was well-received by the market. Saregama India Ltd's shares experienced a significant surge, rising by 6.75% to reach Rs 520.00 before settling at Rs 513.65, marking a 5.45% increase.

Company Statement

In a press release, Saregama India Ltd stated, "This cements Saregama's No.1 position in the only language where the Company was not dominant. Saregama is committed to building IP across genres and languages for sustained growth and value creation."

This acquisition aligns with Saregama's strategy to expand its content library and strengthen its position in the diverse Indian music market. As the entertainment industry continues to evolve, such strategic moves are likely to play a crucial role in shaping the competitive landscape of the music industry in India.