SaReGaMa’s net profit grows by 2.96% to Rs 47.99 crore in Q2, FY24

financialexpress.com:

Saregama, a RPSG Group company’s revenue from operations narrowed by 6.82% to Rs 172.35 crore in Q2, FY24 from Rs 184.98 crore in Q2, FY23. The company’s net profit grew by 2.96% to Rs 47.99 crore in Q2, FY24 from Rs 46.61 crore during the same period in the corresponding year.

Revenue from music rose by 3.95% to Rs 156.87 crore in Q2, FY24 from Rs 150.9 crore in Q2, FY23 while revenue from films and serials narrowed by approximately 1.7% to Rs 15.05 crore in Q2, FY24 from Rs 15.31 crore in Q2, FY23. Revenue from events narrowed 97.7% to Rs 0.43 crore in Q2, FY24 from Rs 18.77 crore in Q2, FY23.

Operational cost narrowed by 23.88% to Rs 40.60 crore in Q2, FY24 from Rs 53.34 in Q2, FY23 while advertisement and sales promotion expenses narrowed by 25.95% to Rs 13.21 crore from Rs 17.84 crore during the same period in the corresponding year.

Saregama agrees to acquire a majority stake in the digital entertainment company, Pocket Aces Pictures. The acquisition, with its more than 95 million social media follower base, will give Saregama anedge in the competitive new content acquisition game. It will also allow Saregama to extend its footprint in the youth category, which is a strong point of Pocket Aces. With the synergies arising out of the acquisition, the combined revenue of the two companies is expected to grow at 27-28% over medium-term basis.

During the quarter, the company released more than 300 originals and premium recreations across Hindi, Bhojpuri, Gujarati, Punjabi, Tamil, Telugu, Malayalam, Marathi and Bengali languages. The company also released more than 2,200 derivatives (LoFi, Trap Mix, Cover, Acoustic etc.) driving the popularity and growth of its catalogue.

The other highlight of the quarter was the use of