Release Date: October 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Digital media revenues increased by approximately 17% year-on-year for Q2 FY25, indicating robust growth in this segment.
- ShemarooMe, the company's digital platform, continues to gain traction, particularly with its Gujarati content offerings.
- Shemaroo Filmi Gaane achieved a significant milestone by becoming the 24th most subscribed channel globally on YouTube, with approximately 70 million subscribers.
- The company successfully launched two original shows on its channel Shemaroo Umang, contributing to its content portfolio expansion.
- Shemaroo Entertainment Ltd is focused on strengthening its balance sheet and maintaining operational efficiencies to unlock intrinsic value.
Negative Points
- Consolidated revenue from operations declined by 18.5% year-on-year for Q2 FY25, primarily due to a higher base in traditional business.
- EBITDA loss for the quarter was around INR27 crores, with a net loss of approximately INR26 crores.
- Traditional media revenues declined by around 33% year-on-year for the first quarter, indicating challenges in this segment.
- The company faced delays in deal closures in its traditional syndication business due to transitional changes in the media industry.
- There is continued sluggish demand for broadcast advertising, putting pressure on traditional revenue streams.
Q & A Highlights
Q: How much debt is Shemaroo Entertainment planning to reduce in H2 FY25?
A: Hiren Gada, CEO, stated that the company aims to reduce debt by INR100 crores over FY25 and FY26. The exact amount for H2 FY25 is uncertain due to industry transitions affecting deal closures, but the company is confident in achieving its target.
Q: What is the expenditure on new initiatives for H1 FY25, and what is the target for the full financial year?
A: Hiren Gada, CEO, reported that INR23.2 crores were spent on new initiatives in H1 FY25. The target for the full year is around INR60 crores, down from INR42 crores in the previous year, indicating better control and direction towards profitability.
Q: What is the strategy for inventory write-offs in H2 FY25?
A: Amit Haria, CFO, explained that approximately 40% of the inventory as of December is planned to be written off over the coming quarters. An additional INR50 to INR60 crores is expected to be charged off in H2 FY25, similar to the amount in H1.
Q: How is Shemaroo Filmi Gaane performing, and what is the revenue outlook for this segment?
A: Hiren Gada, CEO, clarified that Shemaroo is primarily a video label, not a music label. The channel has grown significantly, becoming a leading channel for classic and retro music on YouTube. The company continues to invest in content acquisition to maintain its leading position and revenue stream.
Q: What is the current status and future strategy for the MarathiBana channel?
A: Arghya Chakravarty, COO, stated that the channel remains free-to-air but has exited the high-cost free dish option. The channel's viewership has stabilized, and the company is evaluating content strategies to enhance its position, awaiting better market conditions for further investments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
