Tips Music (TIPSMUSIC) Q2 24/25 earnings summary

Executive summary

• Revenue for Q2 FY25 grew 32% year-over-year to INR 80.6 crore, with H1 FY25 revenue up 36% to INR 154.5 crore compared to H1 FY24.

• PAT for Q2 FY25 was INR 48.2 crore, up 21% year-over-year; H1 FY25 PAT rose 37% to INR 91.8 crore.

• The company remains debt-free, maintains robust cash reserves, and continues to reward shareholders through dividends and buybacks.

• Digital platforms account for 75% of revenue, with a catalogue spanning over 25 languages and 31,000+ songs.

• Unaudited financial results for the quarter and six months ended September 30, 2024, were reviewed by the Audit Committee and approved by the Board on October 16, 2024.

Financial highlights

• Operating EBITDA margin for Q2 FY25 was 73.8%.

• Content cost for Q2 FY25 increased 194% year-over-year to INR 13.8 crore.

• EPS for Q2 FY25 was INR 3.8, up from INR 3.4 in Q2 FY24.

• Revenue from operations for Q2 FY25 was INR 8,061.21 lakhs, up from INR 6,087.39 lakhs in Q2 FY24.

• Net profit for Q2 FY25 was INR 4,816.10 lakhs, compared to INR 3,964.82 lakhs in Q2 FY24.

Outlook and guidance

• Management reaffirmed 30% top-line and bottom-line growth guidance for FY25 and the next 2-3 years.

• The company expects continued growth driven by digital expansion, content addition, and increasing market share.

• Digital advertising and streaming trends are projected to further boost revenue streams.

• Content acquisition spend expected to rise to 20-30% of revenue from next year.

• Market share goal is to reach double digits (10-11%) in 3-4 years.