Shemaroo Q1 consolidated revenue down 13.3% YoY at Rs 74.8 crore
While traditional media revenue declined 34.1% to Rs 34.5 crore, the company's digital media revenue increased 18.8% to Rs 40.3 crore
Shemaroo Entertainment's consolidated revenue from operations has declined 13.3% to Rs 74.8 crore for the quarter ended 30th June from Rs 86.2 crore in the same quarter of the previous fiscal. Digital media revenue increased 18.8% to Rs 40.3 crore, while traditional media revenue declined 34.1% to Rs 34.5 crore.
Expenses dropped 25.8% to Rs 67.6 crore from Rs 91.1 crore. The company posted an operating profit of Rs 7.1 crore for the quarter, as against an operating loss of Rs 4.9 crore. EBITDA margin stood at 9.56%, compared to -5.67% a year ago. The company's net loss narrowed to Rs 1.4 crore from Rs 12.8 crore.
In its Q1 investor presentation, the company said that the advertising, subscription and syndication revenues remained under pressure this quarter due to the second wave of Covid-19 and the resultant lockdown. The company's traditional media segment faced a bigger impact than the digital media segment.
With states unlocking and vaccinations underway, the company believes that the consumer and business sentiments across sectors are expected to improve over the next few months. This will drive the recovery for the M&E sector, the company added.
During the quarter, the company undertook several measures to optimize operations and rationalize those businesses that had been severely impacted due to Covid-19.
The company rolled out the ShemarooMe B2C strategy this quarter on the back of ShemarooMe Gujarati with an impressive line-up of direct-to-digital film releases and original web series with a leading star cast. This was aided by an extensive marketing campaign on both television and digital media. Through this, the company intends to make ShemarooMe the most prominent OTT video destination for the Gujarati audience.
It also partnered with Zain, Saudi Telecom Company (STC) and Mobily in Saudi Arabia and Etisalat in the UAE. The company also partnered with ZEASN, a smart TV solutions provider, for global distribution on Android TV devices.
Shemaroo crossed 53 million subscribers on its YouTube channel ‘FilmiGaane’ to become the 21st most subscribed channel in the world. Shemaroo was the distribution partner for a docuseries titled 'Alma Matters: Inside The IIT Dream' on Netflix.
During the quarter, the company continued investing in its broadcasting channels, Shemaroo MarathiBana and ShemarooTV. While both the channels witnessed an uptake in monetization through advertisements, the second wave of Covid-19 affected the advertising spends by brands this quarter, the company said.
The company claimed that Shemaroo MarathiBana continued to deliver steady ratings throughout the quarter, thereby establishing the brand’s connect within a short span of time. While ShemarooTV started in a challenging economic and competitive scenario, the company is strengthening its proposition through a focused approach towards building programming, marketing, and distribution.
ShemarooMe Gujarat was relaunched in April 2021 and is being positioned as a premier Gujarati-focused OTT service. The platform will have an exciting mix of web series, nataks, and movies including direct-to-OTT releases. It also promises to offer one new fresh content piece every week. It aims to bring together all Gujarati-speaking audiences on one platform, cater to the entertainment needs of all age groups in the family and bring back the spotlight on local Gujarati talent.
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