RadioandMusic
| 18 Nov 2017
Backed by new media, Shemaroo reports improved numbers for first quarter

BENGALURU: Indian integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported  8.6 percent higher y-o-y consolidated Total Revenue for the quarter ended 30 June 2017 (Q1-17, current quarter) at Rs 1,045.1 million as compared to the Rs 962 million in Q1-17. Shemaroo’s consolidated PAT for the current quarter improved 21.5 percent y-o-y to Rs 160.30 million (15.3 percent margin) as compared to the Rs 131.90 million (13.7 percent margin) in the corresponding quarter of the previous year.

Revenue from operations increased 8.1 percent y-o-y to Rs 1,036.40 from Rs 958.70 million. In its earnings release, Shemaroo says that revenue from new media increased 41.7 percent y-o-y in Q1-18 to Rs 285.3 million from Rs 201.4 million. However, revenue from traditional media declined 1.5 percent in the current quarter to Rs 738.2 million as compared to Rs 749.6 million in the corresponding year ago quarter.

Shemaroo’s EBIDTA including other income in the current quarter at Rs 343 million (32.8 percent margin) increased 12.9 percent y-o-y from Rs 303.70 million (31.6 percent margin).

Shemaroo whole time director and CFO Hiren Gada said, “After few quarters of impact, the traditional media business has slowly recovered to near normal levels post demonetization. We have achieved an overall topline growth of 8.6 percent on a y-o-y basis. We continue to expand our digital reach and have managed to maintain our upward trajectory with a growth rate of 41.7 percent on a y-o-y basis in the digital media business. Our huge content library with varied genres and our expertise to monetize it helps us offer our audiences their preferred choice of content on desired platforms.”

Let us look at the other numbers reported by Shemaroo

The company’s Total Expenditure (TE) in Q1-18 at Rs 795.5 million (76.1 percent of TIO) was 7.9 percent more y-o-y than the Rs 737 million (76.6 percent of TIO).

The company’s cost of Raw Materials consumed more than doubled (increased 2.25 times) y-o-y in Q1-18 to Rs 1312.50 million (125.6 percent of TIO) as compared to Rs 583.80 million (60.7 percent of TIO). Changes in inventories of finished goods and work in progress resulted in a reduction of Rs 754.90 million in the current quarter as compared to a reduction of Rs 46.60 million in the corresponding year ago quarter.

Employee Benefit Expense (EBE) in Q1-18 increased 9.1 percent y-o-y to Rs 83.80 million (8 percent of TIO) as compared to Rs 76.80 million (8 percent of TIO).

Finance costs in the current quarter increased 18.6 percent (7.8 percent margin) y-o-y as compared to Rs 68.30 million (7.1 percent margin).Other expense in Q1-18 increased 37.6 percent to Rs 60.80 million (5.8 percent margin) from Rs 44.20 million (4.6 percent margin) in Q1-17.

Basic and undiluted EPS (not annualised) for Q1-17 was Rs 5.17, for Q1-16 it was Rs 4.29; in Q4-2016 EPS was Rs 6.05.

Operational highlights as per the company’s media release

Shemaroo says that in Q1-18, it:

Signed a content deal with YuppTV

Crossed 3 million subscribers on our flagship YouTube channel ‘ShemarooEnt'

Crossed 3 million subscribers on its YouTube channel ‘FilmiGaane’

Crossed 2 billion cumulative views on its YouTube channel ‘FilmiGaane’ Crossed 5 lakh subscribers on its YouTube channel ‘Indian Comedy’

Launched with Airtel Digital TV: a) Bhojpuri Service in April 2017 b) Comedy Service in May 2017

Launched with Tata Sky: a) Tata Sky Bollywood Premiere Service in May 2017. 'Miniplex' service makes way for this service b) Tata Sky Classic Cinema service in June 2017"

The company claims that some brands have pulled their advertising out from YouTube since some of their ads were shown next to hateful and offensive content. As a result, YouTube has implemented stricter brand safety guidelines and therefore stopped monetizing certain videos