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Shemaroo Entertainment Limited Q1 FY25 Earnings Conference Call Summary
Financial Performance • Revenue: Flat at approximately Rs. 154 crores • EBITDA Loss: Rs. 13 crores • Net Loss: Rs. 17 crores • Digital Media Revenue: Increased by 20% year-on-year to Rs. 69 crores • Traditional Media Revenue: Declined by 11% to Rs. 86 crores
Operational Insights • Viewership Decline: Noted due to major sporting events and elections affecting advertising spends • Inventory Reduction: Decreased from Rs. 682 crores to Rs. 640 crores • Focus Areas: Operational efficiencies and balance sheet correction
Future Outlook • Inventory Write-offs: Expected to decrease by 40% over the next two years • Budget for New Initiatives: Rs. 60 crores for FY '25, down from Rs. 100 crores in FY '24 • Debt Reduction Goal: Aim to reduce debt by Rs. 100 crores over the next two years
Digital Platform Success • ShemarooMe: Highlighted as a successful digital platform • YouTube Channel: Growth noted for FilmiGaane
Q&A Highlights • Operating Cash Flow: Follow-up needed for Q1 details • Inventory Write-offs: Explained as an accounting decision to address investor concerns • Future Accounting Policies: Amortization periods vary based on content type • Market Share: Stagnation around 7.5% to 8%, but recent increase acknowledged • Revenue Models: Various models for partnerships with platforms like Jio Fiber
Free Cash Flow and Leverage • Annual Free Cash Flow: Projected around Rs. 100 crores over the next two years • Leverage Reduction: To be achieved through internal accruals • Gaming Sector: Early-stage investments related to Web 3.0, not a direct entry into gaming
Conclusion • Closing Remarks: CEO Hiren Gada thanked participants and invited further inquiries.
Shemaroo Entertainment Q4 FY24 Earnings Conference Call Summary
Key Management Participants • CEO: Hiren Gada • CFO: Amit Haria • COO: Arghya Chakravarty
Financial Performance • Q4 Revenue: INR 199 crores (21% YoY growth) • Net Loss: Approximately INR 14 crores • Full Year Revenue: INR 707 crores (27% YoY growth) • EBITDA Loss: INR 26 lakhs
Strategic Measures • Debt Reduction Goal: INR 100 crores over two years • Content Inventory Reduction: Targeting 40-45% • Investment Levels: Lower investments planned for improved cash flow
Debt and Inventory Management • Debt Status: Reduced from INR 362 crores to INR 338 crores • Inventory Write-off: Approximately INR 10 crores for the quarter, treated as a non-cash item
Digital Media Insights • Growth Stabilization: Digital media growth expected to stabilize at 13-15% • Viewership Share: Strong in Bollywood content despite traditional media outperforming
Channel Performance • B2B Revenue Growth: 20% increase • Channel Trajectories: Varying performance across Shemaroo TV, Shemaroo Marathi Bana, Chumbak, and Umang
Future Outlook • Investment Budget for FY25: Approximately INR 50 crores • Breakeven Target: Expected within the next four to five quarters for television broadcasting
Management Responses • Addressed concerns about inventory and debt levels • Clarified tax implications of write-offs and GST matters • Emphasized the importance of content quality and monetization strategies
Conclusion • Management remains optimistic about future growth and financial stability, inviting further inquiries through investor relations.
Shemaroo Entertainment Limited Earnings Conference Call Summary
Financial Performance • Q3 Revenue: INR 156 crores (4% YoY increase) • Q3 Losses: EBITDA loss of INR 18 crores; net loss of INR 30 crores • Nine-Month Revenue: INR 508 crores (30% growth) • Adjusted EBITDA: INR 78 crores after new initiatives
Challenges Faced • Weak Demand: Notable issues in rural demand and reduced advertising spend • External Factors: Impact of the World Cup and state elections on viewership and revenue • Digital Media Stagnation: Growth has plateaued post-COVID, affecting revenue
Employee Expenses • Increased Costs: Justified as necessary for professionalizing the team • Team Size: Peak reached; no significant increases expected
Debt Management • Current Borrowings: Increased to INR 362 crores, expected to stabilize around INR 350 crores • Investment Funding: Most investments funded through internal accruals
Future Outlook • Cautious Approach: Emphasis on balancing short-term measures with long-term growth • Revenue Expectations: No forward guidance provided; aim to maintain momentum
Programming Strategy • Content Mix: Focus on original, syndicated, and licensed content • Viewership Importance: Audience size is critical for attracting advertisers
Conclusion • Long-Term Confidence: Despite current challenges, optimism remains for future growth • Next Steps: Awaiting show cause notice regarding ongoing GST investigation; focus on improving performance in upcoming quarters.
Shemaroo Entertainment Q2 FY24 Earnings Conference Call Summary
Key Management and Call Details • Date of Call: November 1, 2023 • Participants: CEO Hiren Gada, CFO Amit Haria, hosted by Valorem Advisors
Financial Performance • Q2 FY24 Revenue: ₹199 crores (36% YoY increase) • EBITDA: ₹17 crores (121% YoY growth) • Net Profit: Approximately ₹5 crores • H1 FY24 Revenue: ₹352 crores (45% increase) • H1 FY24 EBITDA: ₹25 crores (19% YoY increase)
Business Highlights • Traditional Media Performance: Strong despite advertising demand challenges. • Digital Segment: Facing challenges; ongoing GST litigation addressed. • Content Initiatives: Launch of original programs and an OTT platform in Indonesia.
Advertising and Investment Insights • Advertising Rates: Positive movement noted, but below expectations; better market anticipated during festival season. • Investment in Original Programming: Continued focus with three new shows launched. • Debt Management: Commitment to reducing debt and effective cash flow management.
Viewership and Market Dynamics • Current Viewership Share: 7.4%, with a target of over 15% by 2026. • Impact of Viewership Decline: Slight increase in ad rates despite viewership drop; rebasing effect noted. • Digital Revenue Decline Factors: One-off base effect, pressure on YouTube views, competition from free platforms.
Future Plans and Strategic Initiatives • Channel Plans: Another channel launch planned for H2 FY24; strong position in the Gujarati OTT market. • Web 3.0 and Metaverse: Cautious exploration with minimal investments; development of Shemaroo Verse. • Investment Benchmarks: Commitment to an 18% internal rate of return (IRR) benchmark.
Long-term Outlook • TV Business Stabilization: Expected to take 4-5 quarters to become cash positive. • High Operating Leverage: Potential for significant profitability post-breakeven. • Future Content Investments: Emphasis on maintaining cash flow and managing costs while investing in original content.
Closing Remarks • Festival Season Wishes: Hiren Gada concluded the call with positive wishes for the upcoming festival season.