Thread by @TYMFinance

The oldest music label company SAREGAMA India Ltd conducted their con call on 20 jan 2022

“Target to be a pure play content Company of India”

Here are the key takeaways…

Business update

- During the period Company has delivered good increase in their revenue and profits.

- In link to the festive seasons, the company improved their carvaan sales.

- In YouTube space, they had received good response for their new shows.

- And with that company has also closed 2 web series for which licensing deals are closed.

- Company is very bullish towards its future looking at the rapid digitalisation of India and changes in peoples content consumption habits.

- During this quarter, many areas still had lockdown imposed and no new content were published. This trend will break in times to come leading to a huge upturn.

Strategic move

- The #stayathome work life with cheap data has been very helpful for them.

- They are constantly monetising through their existing IPs, With every 3 party digital platform.

- And creation of new IPs content in all areas.

- Company plans to launch 60 new films and web series episodes in next 3-5 years.

- Along with 1200-1500 hours of Tv serials content.

- Under it’s music IP, company has recorded 2800 INR MM revenue in FY 21 and plans to break this in upcoming year.

- Company is constantly increasing its revenue stake from the count of new songs it issues.

- Under Tv and Film segment, company is bearish about Q4 results looking at the covid situation.

- To strength business, They are unlocking existing IP through language remakes.

- Company is gaining a lot from advertising and expect this industry growth to be around 11% .

- They are focused and have created a team of data Analytics to get the best picks in the content which can deliver best results.

- Company even with huge content ip still has limited YouTube content. Due to IP sales. Still they are able to generate high revenues from advertisement.

- The company Under talent management, They look for new young talent and help them gain more with positive link to firm.

- These talents are hired from all the social media platforms.

- Support is given for their new launch and have contact set up for benefit for both of us.

Financials

- Company has been able to grow its PBT at 40% YOY and OIBCID at 44% YOY.

- In the last 9 month phase Company has been able to grow its revenue by 26%.

- Company generates majority of its revenue from its music business.

- On YOY scale the publication business has delivered strong growth of about 27%.

- This still represents lowest contribution to revenue and a shift can be seen in this segment.

- The increase in operating income was due to increased revenue and decreased cost.

- Company management was not able to answer why they are conducting Qip on one side and issue high dividend on other side.

- During this period, they bought many IPs from outside , The company couldn’t disclose their value.

- The paid service is yet to gain the trigger it is expect to receive, But looking at the current market dynamics this shift will be important as they can’t sustain with advertising model.

- In advertising space they earn 10 Paisa for every stream and in paid service they are going to get 50% of what platforms make in the content pool.

- This will lead to a huge margin jump.

- Company is target to attain 25-30% organic growth in business.

- In previous fund raising, 750 cr is only for music space. They expect to gain the most out of the music business.

- In it before getting into anything their first priority is licensing.

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