Thread by @ValueEducator

#saregama Q1 23 Concall Highlights 🎵🎵

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1. Music business segment grew 38% YOY (Caravan + Licencing)

2. Crossed 550 mn views for sarekaru vari pataa movie

3. Nathunia bhojpuri song crossed 150 mn youtube views in 3 months

4. Planning for a big jump for content acquisition after QIP. There will be regional content acquisition as well.

Planning to take 30-35% out of total content which will be around 800 cr so saregama would be taking 240 to 280 crs

5. Useful life of music initially was taken as 6 years while after the assessment, company changed to 10 years.

6. Marketing cost expensed immediately while content acquisition cost will be amortized over 10 years. Higher for the first 2 years and liner after that.

Amortisation of content acquisition :
Year 1 : 20%
Year 2 : 15%
Year 3 to Year 10 : 8%

7. Launched 2 new products in caravan segment
- Music Bar with Karaoke at the Higher end
- Carvaan Mobile at the Lower end

8. Mostly of Yoodlee movies will get released in Q3 and Q4

9. Started new business segment of Live Music Events with Diljit Dosanjh.

Started with 6 shows
In India : Gurgaon, Jallandhar
Canada : Vancouver, Calgary, Winnipeg, Toronto
Out of which 4 were house full.

10. Experimenting with live content segment : 10% margin business, this segment created majorly to have association with singers and new content

11. Most of the cases overflow is coming which is higher than minimum guarantee deals which are done with the platforms

12. Company sold 98k units in Q1 compared to 45k last year. Not investing anything in caravan business segment

13. Initially newer platforms works on fixed fees models but as volumes increase on platform those deals convert to variable contracts.

14. There is a dip in advertising revenue for TV segment while there is no impact on streaming advertisements.

15. Yoodlee movies have 15 to 20% margins. Reached 100 cr revenues planning for 150 cr in next 1-2 years. Looking to acquire content for web series

16. Exploring NFTs it can be significant if user get the value out of it. Saregama will soon announce about it

17. Q1 is generally slower qtr. Q1 never matched revenues of Q4 for music segment. First time this qtr.

There is seasonality in the music business, it’s better to track the business YOY.

18. No senior employee of saregama takes the decision on music acquisition, it’s done by the team under the age of 30 years.

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Link : valueeducator.com/advisory/