Tips Music Aims For 30% Revenue Growth For Next Three Years
Noting that OTT platforms are among the music label's growth drivers, Chairman Kumar Taurani said digital platforms and streaming services contributed 75% to its revenues.
Tips Music Ltd. is poised to clock 30% revenue growth over the next three years, said Managing Director Kumar Taurani.
The music record label had released its second quarter earnings last week, whereby it had posted a 21% year-on-year growth in profit after tax at Rs 48.2 crore. It had reported Rs 39.7 crore PAT in the year-ago period. The company’s revenue from operations expanded 32% YoY to Rs 80.6 crore.
Commenting on the results, Taurani told NDTV Profit that the company is confident of clocking revenue and PAT growth around the 30% mark.
“This year, we will do 30% top line and surpass 30% or more on PAT. Next year too, we are focussing on achieving those targets. That is my target for at least 2–3 years,” he said.
Taurani pointed out that Tips Music has worked with ambitious growth targets for the past few years.
“Earlier we used to say 15–20% bottom line. But last year, we changed that to 30% topline and 20% PAT. Last year, we did 66% PAT,” he said.
Kumar Taurani also talked about the factors driving Tips Music’s growth.
“We started in 1988, acquiring film music content and till 2020 we considered it as our catalog. This catalogue is doing well. If you see the last few years, on a quarter-on-quarter or year-on-year-basis, it has been doing extremely well,” he said.
OTT platforms are a growth driver as well for the company, according to Taurani. “All OTT platforms are pushing their services for paid subscriptions. That will also be a big advantage for the industry, and I am part of it so it benefits me indirectly as well,” Taurani said.
The top executive said that digital platforms and streaming services contributed 75% to the company’s revenues.
“The rest 25% comes from public performance, publishing, and TV broadcasts. We have sync rights and any company, or producers, or web series, who need my song clip to sync in the programme, need to take rights from us. Those are the three or four revenue-generating models we have,” he explained.
Shares of Tips Music Ltd. closed 0.99% lower at Rs 773 apiece on Monday, compared to the benchmark Nifty 50’s decline of 0.29%.
