TipsMusic - Great Addition to your longterm PF - Buy above 680

TipsMusic - I believe is a core stock, which can be kept for your long term investment.
People consume content on youtube / amazon and other music streaming platforms giving direct benefit to this co.

People won't stop consuming music.

Current market fall is a good opportunity to add at 680 levels.

With Dollar $ strengthening the payouts on all Platforms is going to only improve.

One can add for targets of 700/780/950. with a strict stop loss of 655.


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☎️ Con-call Highlights - #TipsMusic Ltd

Tips Music Limited (TIPSMUSIC) - Q3 FY25 Earnings Call Key Takeaways

Current Financial Performance (Q3 FY25):

Revenue: Rs.77.7 crores, a growth of 20% YoY and a slight decline of 4% QoQ.
Operating EBITDA: Rs.55.6 crores, marking a 28% increase YoY.
Operating EBITDA Margin: Stood at 71.6%, up by 458 bps YoY.
PAT: Rs.44.2 crores, up 27% YoY and a minor dip of 8% QoQ.
Content Cost: Rs.14.6 crores, a 1% decrease YoY and a 5% increase QoQ.

Current Financial Performance (9M FY25):

Revenue: Rs.232.2 crores, a 30% growth YoY.
PAT: Rs.136 crores, a 34% increase YoY.

Operational Performance:

Song Releases: 116 songs launched in Q3 FY25, featuring 40 film songs and 76 non-film songs.
YouTube Growth: Subscriber base reached 113 million.
Global Reach: Partnered with TikTok to provide global access (excluding India and China) to Tips Music content.
Social Media Engagement: Noticed healthy search and content usage growth across Meta platforms like Instagram and Facebook.
Popular Tracks: "Jhooti Kasoori," "Afghani Jalebi," and "TR" gained significant traction.
Streaming Milestone: Songs from the film Ishq Vishk Rebound exceeded 100 million streams on Spotify.
Continued Success: "Manna" from the film Crew showed strong performance across platforms.

Future Outlook:

Management anticipates a 30% YoY revenue and PAT growth in FY25 and onwards.
Predicts growth through increased subscriptions, with a focus on Spotify.
Sees promising monetization in increased YouTube Shorts and Meta video lengths up to 3 minutes through advertising.
Identifies live performances and public events as lucrative revenue channels.
Foresees short-form video content, live events, and subscriptions as major growth drivers. Anticipates an exceptional year with 50% industry growth driven by subscriptions.
Open to acquisitions to bolster market share in the music streaming domain.

Concerns:

Analysts raised concerns over lower-than-expected content acquisition costs affecting long-term growth. Management expects content costs to rise to 25% to 27% and reassures robust long-term growth with their current catalog.
Concerns about the impact of a shortage of blockbuster films on the music industry and reliance on its catalog were addressed. The company forecasts revenue improvements with new 2025 releases and emphasizes the catalog's strength.
Questions on the timeline for short-form video monetization were answered with an estimate of three to four more quarters for realization.

Other Important Points:

The board announced a Rs.3 per share dividend.
Completed a share buyback valued at Rs.46.61 crores.
Total shareholder payout for 9M FY25 was Rs.136.09 crores, including the buyback.
Management aims to maintain a digital to non-digital revenue split of 75%/25%.
The TikTok deal involves advance payments with revenue recognition over quarters, covering international markets except India and China. The deal remains undisclosed for competitive reasons but was described as decently sized.
Content costs are fully expensed in the release quarter, with no plan to alter this practice.


Disclaimer : Educational Post. Please do your own due diligence.