There was a good ramp up in revenues, but higher expenditure on business development meant bad profitability. It was interesting to notice that their Hindi GEC viewership share rose to 10%, given they had only started the broadcasting business in 2020. Notes from call below.
FY23Q3
- Expenditure on new ventures was 22 cr. in this quarter (9M expense ~ 53 cr.). This is higher than projected 50 cr. for the entire year because they got the opportunity to ramp up market share in Hindi GEC channels from 6-7% to 10%. Additionally, advertisement was muted which resulted in shortfall of revenues corresponding to costs incurred. Advertisement is expected to be muted in the near term
- Contribution of B2C revenues in total revenues has doubled in 9M FY23 (vs 9M FY22)
- Shemaroo GEC channels have 10% of Hindi GEC viewership with Shemaroo TV and Umang being amongst the top 3 in FTA GEC channels
- Borrowings stayed same as H1FY23, higher finance cost is due to higher interest rate
- Inventory has come down to 697 cr. (from 701 cr. in H1FY23)
Disclosure: Invested (position size here, no transactions in last-30 days)