Tips Music (TIPSMUSIC) Q4 05/06 earnings summary

Executive summary

• Returned to profit before tax of Rs 79 lakh after a Rs 632 lakh loss in FY04/05; operations were described as stabilized following the merger effective 1 April 2005.

• Financials include the merged film subsidiary from 1 April 2005, making FY05/06 and FY04/05 figures not fully comparable.

Financial highlights

• Income was Rs 3,081 lakh vs Rs 3,358 lakh; net sales were Rs 1,379 lakh vs Rs 2,808 lakh, while other income rose to Rs 903 lakh from Rs 550 lakh.

• Profit before tax was Rs 79 lakh vs a loss of Rs 632 lakh; profit after tax and prior-period/exceptional items was Rs 63.5 lakh vs a loss of Rs 703.3 lakh.

• No dividend was recommended because of carried-forward losses.

Outlook and guidance

• Targeted one film release per quarter beginning Q4 FY07; film production was identified as a key growth driver.

• Planned growth through film acquisition and distribution, expanded artist management, catalogue conversion to VCD/DVD, and digital, ringtone and FM-radio income.