Tips Music (TIPSMUSIC) Q2 24/25 earnings summary

Executive summary

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

• PAT for Q2 FY25 increased 21% year-over-year to INR 48.2 crores; H1 PAT rose 37% to INR 91.8 crores.

• Digital platforms, especially YouTube, Spotify, Saavn, Amazon Music, and Apple Music, are driving growth, with digital accounting for 75% of revenue.

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

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

Financial highlights

• Q2 FY25 revenue: INR 80.6 crores (up from INR 60.9 crores in Q2 FY24); H1 FY25 revenue: INR 154.5 crores (up from INR 113.5 crores in H1 FY24).

• Q2 FY25 PAT: INR 48.2 crores (up from INR 39.7 crores in Q2 FY24); H1 FY25 PAT: INR 91.8 crores (up from INR 66.8 crores in H1 FY24).

• Operating EBITDA margin for Q2 FY25 was 73.8%; operating EBITDA for Q2 FY25 grew 19% year-over-year to INR 59.5 crores.

• Content cost for Q2 FY25 was INR 13.8 crores, up 194% year-over-year.

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

Outlook and guidance

• Management maintains 30% top-line and bottom-line growth guidance for FY 2025.

• Content cost expected to be around 22-23% of revenue for FY 2025, with a target of 20-30% in subsequent years.

• Market share targeted to grow from current 8-9% to double digits (10-11%) over the next 3-4 years.

• Paid subscription base in India expected to rise from 2-3% to 10-15% in 2-3 years.

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