Saregama India, One of India’s largest music labels, has reported an operating income of Rs 45. 53 crores for the quarter ending September 30, 2013, up 21.35% from Rs 35.81 crores reported at the end of June 30, 2013 and up 9.49% from Rs 41.21 crores reported at the end of the same quarter last year.
Of this, Licensing Fees brought in Rs 29.08 crores for Q2-FY13, up 21.05% from Rs 22.96 crores reported in Q1, and up 6.95% from Rs 27.06 crores reported at the end of the same quarter last year. Net sales brought in comparatively less income, at Rs 16.37 crore.
The company’s net profit has increased to Rs 2.49 crores, up 26.51% from Rs 1.83 crores reported at the end of Q1-FY13 and up 56.22% from Rs 1.09 crores reported at the end of the same quarter last year.
The company reported total expenses of Rs 43.60 crores for the quarter ending September 30, 2013, up 21.86% from Rs 34.07 crores at the end of quarter ending June 30, 2013 and up 10.16% from Rs 39.17 crores at the end of the same quarter last year. Of this amount, the cost of production of films, television serials and portal was reported at Rs 13.83 crores for the quarter ending September 30, 2013, up 35.86% from Rs 8.87 crores reported at the end of June 30, 2013 and up 45.19% from Rs 7.58 crores reported at the end of the same quarter last year.
Segment wise revenue
– Films & television serials accounted for Rs 16.07 crores for the quarter ending September 30, 2013, up 33.29% from Rs 10.72 crores at the end of June 30, 2013 and up 47.85% from Rs 8.38 crores at the end of the same quarter last year.
– Music segment accounted for Rs 29.46 crores for the quarter ending September 30, 2013, up 14.83% from Rs 25.09 crores at the end of June 30, 2013 and down 10.27% from 32.83 crores at the end of the same quarter last year.
Licensing Agreement: It is worth noting that during the quarter, Saregama had inked a worldwide licensing agreement with the Home Entertainment Services division of Sony DADC (Sony Digital Audio Disc Corporation) for its physical business. Sony DADC will receive exclusive worldwide rights to the entire Saregama audio/video content library including its sales, marketing and distribution across physical formats like CDs and DVDs, among others. Saregama will focus on the digital part of the business, and is also keeping the artists and repertoire (A&R) division
As per a PTI report in July 2013, the company’s digital format accounted for 70% of the company’s revenues while physical sales accounted for the remaining 30%.
Download: Financials
