Tips Music Limited has informed the Exchange about Investor Presentation
January 22, 2025
To, Listing Department BSE Limited P.J Towers, Dalal Street, Fort, Mumbai – 400 001
To, Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 050
Scrip Code: 532375
Symbol: TIPSMUSIC
Dear Sir/ Ma’am,
Sub: Submission of Investor Presentation
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, we enclose herewith a copy of Investor Presentation with respect to Unaudited Financial Results of the Company for quarter ended December 31, 2024.
The same shall be uploaded on our website https://tips.in.
We request you to kindly take the above information on record.
Thanking You,
For TIPS MUSIC LIMITED (Formerly known as Tips Industries Limited)
Bijal R. Patel Company Secretary
Encl: a/a
Investor Presentation Q3FY25
Safe harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Tips Music Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the Company’s ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cashflows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
All Maps used in the Presentation are not to scale. All data, information and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness.
Company Overview
KEY FACTS
Catalogue comprises of music in over 25 languages available across multiple platforms globally
Only listed player to expense off 100% of content cost in the quarter of release
Debt free company with ₹ 259 cr of cash & investments
Established A&R capability
96 Employees (Q3FY2025)
75% Revenue through digital platforms
25+ Partners across media business
113 mn subscribers on YouTube CAGR of 20% (3 Year)
Founded Year 1988
Website www.tips.in
Industry Media & Entertainment
Target Indian Subcontinent & Diaspora
3
What Makes Us Unique
Optimising Capital Allocation
Optimising Capital Allocation
Sustainably Increasing market share
Sustainably Increasing market share
Two Pronged Content Acquisition Strategy
Two Pronged Content Acquisition Strategy
Global Platforms Our Content Powers
Our Content Powers Global Platforms
Growing listenership Increasing Content Addition
Growing listenership & Increasing Content Addition
Optimising Capital Allocation : Total Payout to shareholders in FY25 Rs 136.09 Cr
Consistently rewarding shareholders through Buybacks & Dividends
(Crs)
Reducing Equity Shares*
17.31
15.96
15.36
-26%
14.32
12.97 12.84 12.78
12
5
2
275
77
259
89
62
56
40
47
41
33
5
7
4
2
14
19
21
13
2
2
2 0.3
3 0.0
3 0.1
6 0.3
0.3
0.2
13
4
10
2
2
0.5
2
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
9MFY25
2009
2010
2013
2016
2020
2023
2024
Net Cash/Debt
Content Cost
Interest Cost
Dividend
Buybacks
Q3FY25 – Interim Dividend of Rs 3 per share amounting to Rs 38.35 Cr Total Payout for 9MFY25 - Rs 136.09 Cr (including buyback)
*Note : No. of shares after share split
5
Sustainably Increasing market share: Revenues Surged 1.8x in Last 2 Years
Music Sector*
Revenues
(₹ Crs)
(₹ Crs)
3,700
+14%
2,400
2,800
2,200
1,900
136
91
242
232
+39%
187
CY21
CY22
CY23
#
CY24E #
CY26E
#
FY21
FY22
FY23
FY24
9M FY25
Tips Music outperformed sectoral growth by 2.8x over the past 4 years
*Source: EY-FICCI M&E Report 2024; # EY Estimates
6
Two Pronged Content Acquisition Strategy
PURCHASE
STRATEGY
CONTENT COST
o We purchase music rights from other producers when we see
profitable opportunities
o Our understanding of music and its creative process provides us deep insight on costs and returns and therefore we always maintain cost consciousness while acquiring music rights
100% of content cost is expense off from profit & loss account in the quarter of release
No capitalization & no pending write-offs in the future.
PRODUCE
STRATEGY o To introduce promising singers (Tips) is in our DNA
o We have a strong A&R team which engages with artistes across genres
and languages which allows us to promote upcoming talent
o Our team has a deep understanding of music & a track record of
creating a repertoire of “Must Have Hits”
o Strong track record of producing hit music
Content acquisition is entirely funded through internal accruals.
No borrowings/leverage
Focus is on building a strong A&R team to sign promising artists and acquire quality content, with additional managers now onboard to support these efforts.
7
Our Content Powers Global Platforms
Digital Partners
Sync Deals
Broadcast Partners
8
Upcoming Music Releases
Boney Kapoor’s No Entry Mein Entry Directed by Anees Bazmee
Click here
9
Subscriptions are becoming more acceptable in India
Spotify India Subscription Revenue up by 90% and Ad revenue rose by 114% for FY24
According to Spotify India's 2024 advertising deck, the platform now boasts 70 million monthly active users who spend an average of 1.44 hours daily streaming music
59% of Spotify's total reach comes from the top eight metro cities, while the remaining 41% is spread across 7,000 towns
63% of Spotify India’s users fall within the 25 to 44-plus age group, while the 16-24 age group makes up the remaining 37%
Subscription Realization per stream is higher, which will help drive top-line growth and improve margins over time
* Source: Economic Times.
10
Growing listenership & Increasing Content Addition
Evergreen & Rich content of over 31,000 songs across genres, languages & decades giving us high visibility of music revenue
New Songs Added
116 New releases in Q3FY25
896
733
276
338
116
125
97
Q3FY25
Q2FY25
Q1FY25
FY22
FY23
FY24
9MFY25
Annual YouTube Views (in. Bn)
26.6
FY20
38.5
FY21
+64%
59.6
FY22
193.9
112.7
FY23
FY24
Quarterly YouTube Views (in. Bn)
+12%
62.2
56.6
52.8
146.2
+17%
171.6
47.0
47.8
Q3FY24
Q4FY24
Q1FY25
Q2FY25
Q3FY25
9MFY24
9MFY25
The slower growth in total views is primarily on account of YT shorts, which is not a significant contributor to revenue/profit yet.
11
Financial Performance
Summary of Last 10 Quarters
(Crs)
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
49.6
51.0
52.0
52.6
20.7
17.2
20.2
18.7
26.8
18.4
19.0
12.2
80.6
77.7
73.9
48.2
43.6
44.2
60.9
64.8
63.3
39.5
34.7
25.8
23.9
14.7
12.7
13.8
14.6
4.7
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
Sep-24
Dec-24
Revenue
PAT
Content Cost
Cumulative (10 quarters)
Revenue 626.3
Content Cost 151.4
Profit after Tax 322.5
13
Summary of Last 5 Years
241.6
232.2
(Crs)
90.5
43.5
13.2
FY21
186.8
62.4
+66.2%
76.5
127.2
55.6
136.0
41.1
135.6
64.6
32.7
FY22
FY23
FY24
9M FY25
Content Cost
Revenue
PAT
Revenue
PAT
14
Business Performance
(₹ Crs)
Revenue
Op. EBITDA
Op. EBITDA Margins (%)
+20%
77.7
64.8
+28%
55.6
43.4
+458 bps
67.0
71.6
Q3FY24
Q3FY25
Q3FY24
Q3FY25
Q3FY24
Q3FY25
Revenue
Op. EBITDA
Op. EBITDA Margins (%)
+30%
232.2
+32%
169.4
178.3
128.3
+ 106 bps
71.9
73.0
9MFY24
9MFY25
9MFY24
9MFY25
9MFY24
9MFY25
15
Industry Leading Financial Performance
(₹ Crs)
Revenue
EBIT & EBIT Margin*
80.5%
63.9%
55.1%
66.8%
+39%
187
136
91
+33%
106
73
89
242
171
FY21
FY22
FY23
FY24
FY21
FY22
FY23
FY24
ROE#
EPS#
63%
64%
48%
81%
9.9
+45%
5.9
5.0
3.3
FY21
FY22
FY23
FY24
FY21
FY22
FY23
FY24
Note *Segmental EBIT before allocating corporate overheads for FY21; #ROE and EPS are before demerger for FY21
16
Profit & Loss Statement
Particulars (Rs. in Crs)
Q3FY25
Q3FY24
Y-o-Y
Q2FY25
Q-o-Q
9MFY25
9MFY24
Y-o-Y
Revenue From Operations
Content Cost
Employee Benefits Expenses
Other Expenses
Op. EBITDA
Op. EBITDA %
Other Income
Depreciation and Amortisation Expense
Op. EBIT
Finance Costs
PBT
Tax
PAT
PAT %
EPS*
20%
-1%
77.7
14.6
3.0
4.5
64.8
14.7
2.6
4.1
80.6
13.8
2.8
4.5
-4%
5%
232.2
178.3
41.1
8.6
13.1
31.6
6.6
11.8
30%
30%
55.6
43.4
28%
59.5
-7%
169.4
128.3
32%
71.6%
67.0%
73.8%
73.0%
71.9%
4.2
0.5
59.2
0.1
59.1
14.9
44.2
3.4
0.4
46.4
0.1
46.4
11.7
34.7
56.9%
53.5%
3.5
2.7
28%
27%
27%
5.6
0.5
64.5
0.1
64.4
16.3
48.2
59.7%
3.8
14.3
1.6
9.1
1.5
-8%
182.1
135.9
34%
-8%
-8%
0.2
181.9
45.9
136.0
0.3
135.6
34.2
101.4
58.5%
56.9%
10.6
7.9
34%
34%
17
Note Other comprehensive income/(loss) during the quarter was Rs. 2.07 lakhs (Q3FY24 – Rs.(0.02) lakhs; Q2FY25 – Rs. 3.25 lakhs)..
Balance Sheet
Equity & Liabilities (₹ in Cr)
Sep’24
Mar’24
Assets (₹ in Cr)
Sep’24
Mar’24
Equity Share Capital Other Equity
Total Equity
Financial Liabilities
(i) Lease Liabilities Deferred Tax Liability Employee Benefit Obligations Other Non-Current Liabilities
Total Non-Current Liabilities
Financial Liabilities
Non- Current Liabilities
Current Liabilities
(i) Lease Liabilities (ii) Trade Payables (a) total outstanding dues of micro enterprises and small enterprises (b) total outstanding dues of creditors other than micro enterprises and small enterprises (iii) Other Financial Liabilities
Employee Benefit Obligations Other Current Liabilities
Current tax liability (Net) Total Current Liabilities
Total Equity & Liabilities
12.8 186.4
199.1
2.7 - 0.5 23.7
27.0
1.4
0.0
11.8
2.6 0.0 79.3 3.5
98.7
12.8
Non-Current Assets
166.7
179.5
3.6 0.0 0.7 71.7
76.0
1.4
0.0
14.7
2.9 0.0 64.2 0.3
83.4
Property, plant and equipment Investment Property Capital Work in Progress Financial Assets (i) Investments (ii) Loans (iii) Other Financial Assets
Income Tax Assets (Net) Deferred Tax Assets Other Non‐Current Assets
Total Non-Current Assets
Current Assets
Financial Assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (ii) above (v) Loans (vi) Other Financial Assets
Other Current Assets Current Tax Assets (Net)
Total Current Assets
324.8
338.9
Total Assets
7.3 0.1 -
2.0 0.0 27.3 1.5
4.3
42.5
96.0 28.3 8.0 10.7 2.6 116.3 20.3 -
282.3
324.8
7.8 0.1 0.0
0.1 47.8 - 0.6 6.8
63.2
91.3 26.3 48.5 82.7 2.7 5.8 16.8 1.6
275.6
338.9
18
Cash Flow Statement
Cash Flow Statement (Rs. Crs.)
Cash Flow from Operating Activities
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Add : Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Sept-24
Mar-24
122.8
-8.7
114.1
-39.9
74.2
-26.6
47.6
-14.9
-73.2
-40.5
48.5
8.0
170.5
-6.1
164.5
112.4
276.9
-43.9
233.0
-111.0
-84.8
37.1
11.4
48.5
19
Music – A Digital Journey
Music Is The Most Valuable Content
Global Music Revenue Sources
2.2%
3.2%
9.5%
NEWS
TV SERIALS
WEB SERIES
FILMS
MUSIC
48.9%
CY2023
17.8%
Content that can be monetized multiple times naturally commands greater economic value
18.5%
Music ranks at the top of the content pyramid when ranked on repeated monetization
STREAMING Streaming continued to grow strongly in 2023, up by 10.4% to US$19.3 billion. Paid streaming revenues for CY23 were US$14 billion
SYNCHRONISATION Use of recorded music in advertising, film, games and TV grew by 4.7% (US$632 million) in 2023. Revenues from synchronization accounted for 2.2% of the global market
PERFORMANCE RIGHTS Performance rights are now a US$2.7 billion revenue stream which grew 9.5% in CY2023
*Source: IFPI GMR (2024)
Subscription audio streams
Performance rights
Ad-supported streams
Physical
Synchronisation
Download & Other digital
Streaming comprised 67% of total revenues in 2023 48.9% of all streams were subscription based
21
Digital Advertising – Key Driver of Indian Music Industry
Indian Digital Ad Industry
(₹ Crs)
62,045
50,857
+29%
40,685
29,784
21,353
15,782
13,683
CY2019
CY2020
CY2021
CY2022
CY2023 CY2024E CY2025E
The Indian digital advertising industry stood at Rs 40,685 crore by the end of 2023, up from Rs 29,784 crore in the previous year. It is estimated to grow at a CAGR of 29%.
Ongoing enhancements in digital infrastructure, combined with the robust e- commerce activities, have propelled digital to become the largest media platform, contributing significantly to the overall growth of the advertising industry in India.
The highest proportion of spends on digital media is claimed by social media (30%, Rs 11,962 crore), closely followed by online Video (28%, Rs 11,363 crore). Paid search claims 23% (Rs 9,419 crore), while display banners claim 16% (Rs 6,579 crore).
Social media is expected to grow with a CAGR of 24% to have a spend share of 30% by 2025.
On average, Indians spend 3-4 hours on Social Media daily, which is at par with the global average.
73% of the audience belonging to the age group of 45 years to 54 years use YouTube to watch online content.
*Source: Dentsu Digital Advertising Report 2024
22
Digital Advertising will Dominate Media Spending in India for the Next Few Years
Advertising spends on different media
Advertising spends across various media (%) - Forecast
Radio
Cinema
OOH
2.0%
2.0% 0.3%
20.0%
Television
32.0%
44.0%
Digital
55
50
45
40
35
30
25
20
15
10
5
39
29
20
6 4 2
0 2019
42
26 26
42
29
23
40
35
21
3 3 1
2020
2 2 0
2021
2 2 0
2022
50
34
17
2 2 0
44
37
19
2 2 0
55
Digital
25
16
Television
OOH
Radio
Cinema
2 2 0
2023
2024E
2025E
The current pie of digital ad spends constitutes 44% of the advertising spends in 2023, and moving forward in 2024 and 2025, the percentage is expected to increase to 50% and 55% respectively.
*Source: Dentsu Digital Advertising Report 2024
23
Few Industry Reports
Digital Advertising in India dentsu
IFPIGlobal Music Report
EY Media Entertainment Report 2024 FICCI
EMREricsson Mobility Report
dentsu Digital Advertising in India
IFPI Global Music Report
FICCI
EY Media & Entertainment
Report 2024
EMR Ericsson Mobility Report
24
Thank You
Company Details:
Tips Music Limited
CIN: L92120MH1996PLC099359
investorrelations@tips.in
Email id: investorrelations@tips.in
Investor Relations Advisors:
Orient Capital (a division of Link Group) Mr. Nikunj Jain | Ms. Mamta Nehra +91 9769060608 | +91 9987903500 nikunj.jain@linkintime.co.in| mamta.nehra@linkintime.co.in