Tips Music , a prominent player in the Indian music industry, has reported a robust performance for the first quarter, demonstrating resilience in a challenging market environment.

Financial Highlights

• Revenue reached INR88.00 crores, marking a 19% year-over-year growth
• Operating margins stood at 64%
• Profit After Tax (PAT) increased by 5% to INR45.70 crores
• The Board declared a first interim dividend of INR4.00 per share

Content and Platform Performance

Tips Music continued to strengthen its position across various digital platforms:

• Released 92 songs in Q1, including 48 film songs and 42 non-film songs
• YouTube subscribers reached 125.8 million, with a compound aggregate growth rate of 20% over the last two years
• The song 'Main Nachdi' from the film 'Saunkan Saunkanay 2' crossed 75 million views and charted for 12 weeks on YouTube's top 100
• Catalogue performance on Meta platforms showed impressive results:
  • 'Hona Tha Pyar' and 'Dil Hai Tumhaara' garnered 500 million and 700 million views respectively
  • The classic Salman Khan song 'Chunnari Chunnari' achieved 2 billion views

Strategic Developments

• Content costs increased by 85% year-over-year due to new releases
• The company developed an in-house content management system called 'Pulse' to streamline content delivery to platforms like TikTok and other DSPs via DDEX feeds
• Warner Music continues to contribute significantly, accounting for 25-30% of revenue

Market Challenges and Outlook

Despite the strong performance, Tips Music acknowledged some challenges in the industry:

• The company revised its revenue growth guidance to 20-30% from the earlier 30% target
• Challenges cited include OTT platform shutdowns and policy changes affecting content monetization
• YouTube implemented policies to restrict unauthorized use of music content, which may impact short-term growth but is expected to benefit the industry in the long run

Kumar Taurani, Chairman and Managing Director, commented on the results: "Despite the challenges faced in the music industry, our catalogue and new releases continue to demonstrate resilience with our revenue recording double-digit growth."

Hari Nair, CEO, added insights on the digital landscape: "We are moving slowly and steadily into a paid ecosystem model. The strong growth in our revenue has been across digital and non-digital segments."

Looking ahead, Tips Music remains optimistic about achieving its growth targets, banking on the strength of its catalogue, particularly its 90s repertoire, and upcoming new releases. The company aims to maintain content costs between 25-28% of revenue and targets a minimum 20% PAT growth annually.

As the music industry continues to evolve, Tips Music's strategic focus on quality content acquisition, catalogue monetization, and adaptation to changing digital landscapes positions it well for sustained growth in the coming quarters.

Tips Music Limited announced its financial results for the first quarter, showcasing strong growth in revenue and profitability. The company also declared an interim dividend, demonstrating its commitment to shareholder returns.

Financial Performance

Tips Music reported robust performance in Q1, with revenue reaching ₹88.10 crore, marking a significant 19% year-over-year increase from ₹73.90 crore in the same quarter of the previous year. The company's Profit After Tax (PAT) grew by 5% to ₹45.70 crore, compared to ₹43.60 crore in the previous year.

Operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 rose to ₹56.50 crore, up 4% year-over-year. However, it's worth noting that the EBITDA margin saw a decline, dropping to 64.20% from 73.60% in the same quarter of the previous year.

Content and Digital Performance

During the quarter, Tips Music released 92 songs, including 48 film tracks and 44 non-film tracks. The Punjabi track 'Main Nachdi' emerged as a major hit, contributing to the company's success. The company's digital presence continued to grow, with YouTube subscriber count reaching 125.80 million.

Content Costs and Dividend Declaration

Content costs saw a significant increase of 85%, rising to ₹23.50 crore from ₹12.70 crore in the same quarter of the previous year. Despite this, the Board of Directors declared an interim dividend of ₹4 per share, totaling ₹51.13 crore.

Management Commentary

Chairman Kumar Taurani highlighted the company's resilience despite industry challenges. Executives noted strong performance across digital platforms and successful automation of content management systems.

Company Overview

Tips Music Limited continues to focus on its core business in the Audio/Video Products segment. The financial results demonstrate the company's ability to grow its revenue and maintain profitability in a competitive market. The dividend declaration further underscores Tips Music's financial health and its commitment to delivering value to its shareholders.

Investors and stakeholders can access the detailed financial results on the company's website as well as on the websites of BSE and NSE, where Tips Music shares are listed.