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 our songs for Shahrukh Khan film Jawan, Sunny Deol’s film Gadar 2; web series like Guns and Gulaabs on Netflix and The Freelancer on Hotstar and by brands including Dabur Babool, Soopersoft Biscuits, Ola Electric, Google, HUL. among others in its ad films.
“Saregama continues to invest in content and in companies that lead to the accomplishment of its vision of being the largest IP company that caters to the content needs of every segment of content consumer in the country. Our investment in new music, along with the acquisition of Pocket Aces is a testament to our commitment to being India’s leading music and entertainment company,” Avarna Jain, vice chairperson, SareGaMa India, said.
The company also launched an artist management vertical wherein three artists have been signed on a 360 management basis. The music will start getting released from Q4, FY24 onwards.