Thread by @ValueEducator

#Saregama Q2 23 Concall Highlights 🎵🎵

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1. Companies which hold large IP will have huge advantage in long term

2. Highest qtrly revenues from music segment

3. Not only going to focus on Hindi but will be taking good market share in all languages

4. Announced strategic tie up with arjit Singh for original and recreation in multiple languages

5. Till now only used QIP funds to buy mango music. Looking for the deals at right valuations.

6. Launched carvan mobile with price point of 2000 to 2500 Rs

7. Carvan is acting as good marketing tool due to which digital platform revenues are increasing. Carvan is currently at breakeven

8. Launched live music segment in Q1. Done 6 concerts with Diljit Singh in US and Canada.

Live music is low margins business but it develops relationship with artist. Once this segment stabilize margins will be 8 to 10%

9. Guidance for growth on music licencing Segment : 22 to 24%

10. If 800 cr of music is coming to market saregama will take 30% of the market share

11. Operating leverage will playout in medium term. Expenses as percentage of revenues will reduce. Employee cost as percentage of revenues already reduced from 13% to 11%

12. Initially used to get most of the revenues from 20th century songs but now getting it from 21st century

13. Generally 10-15% royalty is paid

14. Films business have 15-20% margins and expecting 25% growth in medium term

15. Due to change in segment mix there can be reduction in margin as live events is low margin business

16. Artist management business don't need much of investment. Saregama will be focusing on new artists.

17. Globally there are 525 to 540 million paid music subscribers. Expecting transition in India to paid music in 15-18 months

18. Content charge for Q2 23 =17 cr, for H1 = 34 Cr

19. Fastest growing segment on YouTube is smart television

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