Tips Music (TIPSMUSIC) Q3 24/25 earnings summary

Executive summary

• Achieved strong year-on-year growth in revenue and profit, driven by digital platform expansion and content performance, with unaudited results for the quarter and nine months ended December 31, 2024, reviewed and approved by the Board.

• Maintains a debt-free status with significant cash reserves, rewarding shareholders through dividends and buybacks.

• Content catalogue exceeds 31,000 songs in over 25 languages, with 75% of revenue from digital platforms and a growing YouTube subscriber base of 113 million.

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

Financial highlights

• Q3 FY25 revenue reached INR 77.67 crores (₹8,182.31 lakhs), up 20% year-over-year; operating EBITDA at INR 25.57 crores, up 28%.

• PAT for the quarter was INR 44.23 crores (₹4,422.66 lakhs), a 28% increase year-over-year.

• Nine months FY25 revenue was INR 232 crores (₹24,652.83 lakhs), and PAT was INR 136 crores (₹13,595.02 lakhs).

• EPS for Q3FY25 at Rs 3.5 (₹3.46), up from Rs 2.7 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 and beyond.

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

• Plans to increase content investment to 25-27% of revenue next year, with a strong pipeline of releases across multiple languages and genres.

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