Horrible quarter for the co, sales only grew by 4% and they had invested massively in hope of advertising growth resulting in operating losses of 18 cr. this quarter. Business remains highly unpredictable even for the management. Concall notes below.
FY24Q3
-
Expenditure on new ventures was 28.4 cr. in this quarter (vs 22 cr. in Q3FY23). Large part was towards TV broadcasting business
-
Shemaroo GEC channels have 7.6% of Hindi GEC viewership (vs 7.4% in FY24Q2)
-
Advertising demand remains subdued due to rural slowdown, slowdown in new age startup funding, and world cup taking up a large part of ad pie. Planned investments in content, people and marketing pressurized margins. Have started cost rationalization measures
-
Shift towards professionalization of company and hiring has peaked out and dont foresee any big jump in employee costs
-
Expect digital viewership to improve, but its monetization is something that they are not confident about in next 1-2 quarter
-
Have embarked on an aggressive plan of international syndication (buying and selling content it global markets)
-
Debt : 362 cr. (vs 324 cr. in September 2023)
-
Inventory : 727 cr. (vs 738 cr. in September 2023)
-
Digital revenue breakup (65.2 cr. up 8.2% YOY)
Disclosure: Invested (position size here, no transactions in last-30 days)