The bottomline: The Carvaan products are currently the Saregama’s primary focus, at least in the music segment, which accounted for 90% of the company’s FY19 revenue. Consolidated revenues are down, but operational revenues have slightly improved. Profits are dramatically down.
The money: Music label, film company, and hardware seller (since a year) Saregama’s consolidated total income for Q1FY20 stood at Rs 128 crore, a reduction of 19.3% YoY from Rs 158.6 crore (in Q1FY19). Consolidated results include Saregema’s 5 subsidiaries: Saregama Plc, RPG Global Music, Saregama FZE, Kolkata Metro Networks, and Open Media Network. Revenue from operations stood at Rs 125.9 crore, up by 7.9% YoY from Rs 116.6 crore.
Moves into loss: The company recorded a consolidated loss of Rs 1.24 crore, a drastic decline in performance from consolidated profits of Rs 8.63 crore in the corresponding quarter last year (Q1FY19), and from Rs 16.5 crore last quarter. Profits for FY19 were Rs 54.3 crore.
Saregama’s music division: Revenues stood at Rs 110.1 crore, up by 6.3% YoY from Rs 103.5 crore. Profits fell dramatically to Rs 13 crore, a reduction of 53% YoY and 47% QoQ. Revenue in this segment comes via B2B partners like music streaming services, radio, TV, caller ring tone, YouTube, ads, films, and of course the Carvaan products.
Streaming & YouTube from music:
- OTT streams stood at 1.35 billion, up from just 883 million streams in Q1FY19, and slightly down from the 1.4 billion streams in Q4FY19. Streams had crossed the million mark in Q2FY19.
- YouTube views had crossed the million mark last quarter, although it fell to 958 million this quarter. From the corresponding quarter last year, this is an 61% increase from from 594 million views.
Of course, they really care about Carvaan:
Carvaan seems to be front and centre in the company’s list of priorities as of now. It launched two new Carvaan products — Carvaan Go and Carvaan 2.0 — this quarter. Saregama sold 219,000 units of Carvaan this quarter, which was a 34% YoY increase in units sold “despite falling store footfalls and suppressed demand in almost all categories”. The focus this quarter, the company says, was to expand Carvaan’s footprint outside top 10 cities – which it did. Sales outside top 10 towns increased from 39% in Q4FY19 to 43% in Q1FY20.
Yoodlee films released two movies this quarter: Revenue from Films & TV segment fell 23% YoY to Rs 14.29 crore. The segment fell into losses once again, after it recorded a small profit of Rs 44 lakh last quarter. Losses reduced marginally by 4% YoY to Rs 1.17 crore. This segment includes Yoodlee Films, a film production unit, which focuses on digital platform distribution and limited theatrical release. This quarter, Saregama released Hamid on Netflix, did a limited theatrical release of Noblemen, and licensed it to Netflix.
And the publication segment: also remained in losses of Rs 3 crore (Saregama operates the weekly magazine Open).