Saregama India, one of India’s largest music labels, has reported a net profit of Rs 3.36 crore for the quarter ended June 30th, 2014 (Q1-FY15), an 83.6% increase in profit over the same quarter the previous year, wherein it reported a net profit of Rs 1.83 crore. Operating income increased 18.15% by year-on-year to Rs 42.31 crore from Rs 35.81 crore.
Music revenues up 11.3%: While revenues from Music were up 11.13% year on year, at Rs 27.88 crore, Music accounted for around 65.89% of revenues, compared with 70% at Rs 25.09 crore for the same quarter last year. For the full year ended 31st March 2014, music accounted for 66.47% of revenues. The segment reported a profit of Rs 12.89 crore, up 38.45% year on year from Rs 9.31 crore in Q1-FY14. For the full year FY14, the segment reported a profit of Rs 42.64 crore.
Films and TV serial revenues up 34.61%: Revenue from Films and TV serials was up 34.61% year on year, at Rs 14.43 crore, accounting for 34.11% of total revenues. This was an improvement from the same quarter last fiscal, wherein it contributed 29.94% of revenues, and has been gradually increasing. For the full year ended 31st March 2014, music accounted for 33.5% of total revenues. The segment reported a loss of Rs 0.82 crore, whereas in the same quarter last year, it had reported a profit of Rs 0.37 crore. For the full year FY14, this division had reported a profit of only Rs 1.75 crore.
In April this year, Saregama had signed a partnership with the international digital distribution company Believe Digital for the digital distribution of its music catalogue in international markets, especially with the Indian diaspora. The company had also switched its focus to digital sales by licensing its physical rights to Sony DADC last July.