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Saregama’s net profit down by 23% YoY, 1.6 billion OTT streams in Q3FY20

The money: Saregam, which is a music label, production house, and sells music-players called Carvaan, reported a reduction in consolidated income by 16.4% YoY, to Rs 132 crore in Q3FY20. Its net profit fell 23% YoY to Rs 13.4 crore. Profits of the company's music segment — which accounts for 90% of its revenue — reduced by 24.4% this quarter from the corresponding quarter of FY19. Revenue from the music segment fell 19%, and remained largely flat for both the films and publications segment. While the Films/TV segment earned a net profit of Rs 5.31 crore last quarter (Q2FY20), net profit fell to Rs 96 lakhs this quarter. This is double the net profit of Rs 27 lakhs in Q3FY19, which indicates that Q3 isn't particularly great for Saregama. Carvaan sales drop: Sales of the company's flagship product Carvaan dropped to 198,000 units in Q3FY20, from 297,000 units in Q3FY19. Festivals sales were lower than expected as there were lower footfalls in consumer durables and telecom outlets, the company said. Almost half (49%) of the revenue from Carvaan came from mid to small towns, compared to just 36% in Q1FY19. The company also added podcasts to Carvaan 2.0 to broaden its appeal to younger people. The company also lists a variation for Karaoke, live housie, Art of Living variations for the Carvaan line, and also plan to add earphones. Gross margin of Carvaan was 25% for Q3FY20. OTT streams: Saregama licenses music to 8 Indian OTT platforms, and 45 global OTT…

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