wordpress blog stats
Connect with us

Hi, what are you looking for?

, ,

FY09: Saregama Reports Rs. 81.4 Million Loss; Music Biz Improves In Q4

logo-saregamaAs compared to the first quarter of the 2008-09 fiscal year, Music company Saregama India reported half the Net Sales and profitability plummeted to less than 1/10th of what it was in Q1. For the full year, though, the company reported a net loss of Rs. 81.4 million, as compared to a net profit of 82 million for the previous fiscal, while Net Sales declined from Rs. 907.2 million to Rs. 661.6 million. Revenues from license fees also declined from Rs 519.3 million in FY08 to Rs 426.9 million in FY09.

q409-saregama-snapshot

In terms of expenditure, the company has also reported a decline in Royalty costs – down from Rs. 285.5 million in FY08 to Rs. 146.1 million in FY09. Employee costs have increased, but both consumption of raw materials and advertising and sales promotion costs have declined.

On a standalone basis, Saregama India reported Net Sales of Rs. 140.9 million in Q4, and Net Profit of just Rs. 0.5 million for Q4. Profit for Saregama has been declining for the last four quarters, but on the bright side, revenue did recover in Q4, though much of the increase may be attributed to Other Operating Income.

Downloads: Financials

Music Business

A marginal recovery for Saregama was seen in the music business, as it reported Rs. 204 million in revenues for the quarter, and an EBITDA profit of Rs. 87.9 million.

Advertisement. Scroll to continue reading.

saregama-segmentwiseWhile there has been a recovery in terms of both EBITDA and revenues in Q4 Music revenues declined from Rs. 1287 million in FY08 to Rs. 952.5 million in FY09. EBITDA profit declined from Rs. 274.4 million to Rs. 242.6 million in FY09.

Earlier this year, Telecom operator Airtel had claimed to be the largest music company in India, using Saregama as a benchmark.

Other Segments

What really hit the company hard was its Films and TV Serials business, which remained flat in revenue terms at Rs. 136 million for FY09, but saw an increase in costs to report a Rs. 60.1 million EBITDA loss.

Note that the company also entered the Publication business in the fiscal, and reported an EBITDA loss of Rs. 87.5 million, with no corresponding revenue.

Advertisement. Scroll to continue reading.
Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

While the market reality of popular crypto-assets like Bitcoin may undergo little change, the same can't be said for stablecoins.

News

Bringing transactions related to crypto-assets within the tax net could make matters less fuzzy.

News

Loopholes in FEMA and the decentralised nature of crypto-assets point to a need for effective regulations.

News

The need of the hour is for lawmakers to understand the systems that are amplifying harmful content.

News

For drone delivery to become a reality, a permissive regulatory regime is a prerequisite.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ