Tips Music (TIPSMUSIC) Q3 24/25 earnings summary

Executive summary

• Declared a dividend of INR 3 per share for the quarter and completed a buyback of INR 46.61 crores, with total shareholder payout reaching INR 136.10 crores for nine months FY25.

• Strong digital growth driven by new partnerships, notably with TikTok, and increased content usage across Meta platforms.

• Content catalogue exceeds 31,000 songs in over 25 languages, with 75% of revenue from digital platforms and a growing YouTube subscriber base.

• Unaudited financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on January 22, 2025.

• Statutory auditors expressed an unmodified conclusion on the results, confirming compliance with regulatory requirements.

Financial highlights

• Q3 FY25 revenue was INR 77.67 crores, up 20% year-over-year; operating EBITDA grew 28% to INR 25.57 crores with a margin of 71.6%.

• PAT for the quarter was INR 44.23 crores, up 28% year-over-year.

• Nine months FY25 revenue reached INR 232 crores (up 30%), and PAT was INR 136 crores (up 35%).

• Earnings per share (basic and diluted) for the quarter were ₹3.46, up from ₹2.70 year-over-year.

• Content cost for the quarter was INR 14.55 crores, expensed fully in the quarter of release.

Outlook and guidance

• Confident in sustaining 30% annual growth in both revenue and PAT for the next year, supported by digital expansion and new monetization streams.

• Anticipates significant future growth from short-form video monetization and public performance revenues.

• Content investment expected to rise to 25%-27% of revenue next year, with a strong release pipeline.

• Focus remains on expanding digital presence, acquiring quality content, and leveraging industry growth in digital advertising and streaming.

• Third interim dividend for FY 2024-25 of ₹1 per share was declared.