Saregama India Limited, a leading music and entertainment company, has announced its financial results for the first quarter, showing a mixed performance with revenue growth but a slight dip in profit.

Financial Highlights

• Revenue: Saregama's consolidated revenue from operations increased to ₹2,067.70 crore, up from ₹2,052.80 crore in the same quarter last year, marking a growth of 0.73%.
• Net Profit: The company reported a consolidated net profit of ₹367.00 crore, slightly lower than the ₹369.00 crore recorded in the previous year's corresponding quarter.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose to ₹553.00 crore from ₹515.00 crore year-over-year.
• EBITDA Margin: The EBITDA margin improved to 26.70% from 25.07% in the previous year, indicating better operational efficiency.

Segment Performance

Saregama's financial results reveal the performance of its various business segments:

The Music segment continues to be the primary revenue driver for Saregama, while the Artist Management segment showed significant growth. The Video segment experienced a decline, and the Events segment saw a substantial increase, albeit from a smaller base.

Management Commentary

Vikram Mehra, Managing Director of Saregama India Limited, stated in the board meeting, "We are pleased with our Q1 performance, which demonstrates the resilience of our diverse business model. Despite challenges in certain segments, our core Music business remains strong, and we're seeing promising growth in Artist Management and Events."

Board Appointments

In addition to the financial results, Saregama announced two key appointments to its Board of Directors:

1. Mr. Pratip Chaudhuri, former Chairman of the State Bank of India, has been appointed as an Additional Director in the category of Non-Executive, Independent Director.
2. Mr. Vinod Kumar, with over 35 years of experience in companies like Tata Steel and CESC Limited, has also been appointed as an Additional Director in the same category.

Both appointments are effective from July 31, for a term of five years, subject to shareholder approval.

Outlook

While Saregama faces some headwinds in its Video segment, the company's strong performance in Music and Artist Management, coupled with the improving EBITDA margin, suggests a focus on core competencies and operational efficiency. The addition of experienced board members also indicates the company's commitment to strong corporate governance and strategic growth.

Investors and analysts will be watching closely to see how Saregama navigates the evolving entertainment landscape and capitalizes on opportunities in its various business segments in the coming quarters.

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.