Thakur
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Shemaroo Entertainment Ltd, an established integrated media content house has partnered with Hooq to provide bollywood and regional films.
It has also tied up with Tata Sky for premier movie service and now expects the digital business to grow by 70 percent in FY16.
The total income saw a 12.8 percent growth to Rs 93.6 crore for the second quarter of this fiscal against Rs 85 crore for the corresponding quarter last year.
In an interview with CNBC-TV18, Hiren Gada, Whole Time Director and CFO, Shemaroo Entertainment said that the overall margin for the company is in the range of 24 and 28 percent at the EBITDA level and at present it won't possible to give the breakup of the margin between traditional and digital.
Below is the transcript of Hiren Gada’s interview with Reema Tendulkar and Mangalam Maloo on CNBC-TV18.
Reema: Let me first start by asking you about your digital business. That has clearly been the growth driver and the growth there was 82 percent in the quarter gone by. Are you confident that this type of growth will sustain? Any targets that you have set for your digital business?
A: We are happy to not that it has grown in the first half at 82 percent. Overall, when we did the initial public offering (IPO) last year, we were expecting it to be growing between 30 to 35 percent. Actually we grew the last quarter at 53 percent and it has further accelerated. I would estimate that we should be at around 70 odd percent, 60-70 percent for the full year and which is of course, a very good growth number. And all of this is still on the back of actually the infrastructure rollout. So, the broadband, 4G, etc. rollouts have still not yet fully happened. So, we are on a very confident wicket, I would say.
Mangalam: While your revenues on your digital business are growing, canyou give us a sense of what your operating profit is from both your digital business and your traditional media? Can you also give us what margins you are enjoying in both the divisions?
A: The overall margin for the company in general is in the range of between 24 and 28 percent at the earnings before interest, taxes, depreciation and amortisation (EBITDA) level and within that, it is not possible for me to give the breakup of the margin between traditional and digital, but all I can say is that the digital media enjoys a high operating leverage. The costs are obviously not growing as fast as the revenue and there are certain fixed elements in terms of the cost of infrastructure, equipment, etc. or even certain one time-digitisation costs that we incur for the content versus the revenue as it grows, the operating leverage is very high.
http://m.moneycontrol.com/news/business/hope-for-70-growth-after-tie-ups-shemaroo_4361941.html?utm_source=IW_DATA_stockpage
It has also tied up with Tata Sky for premier movie service and now expects the digital business to grow by 70 percent in FY16.
The total income saw a 12.8 percent growth to Rs 93.6 crore for the second quarter of this fiscal against Rs 85 crore for the corresponding quarter last year.
In an interview with CNBC-TV18, Hiren Gada, Whole Time Director and CFO, Shemaroo Entertainment said that the overall margin for the company is in the range of 24 and 28 percent at the EBITDA level and at present it won't possible to give the breakup of the margin between traditional and digital.
Below is the transcript of Hiren Gada’s interview with Reema Tendulkar and Mangalam Maloo on CNBC-TV18.
Reema: Let me first start by asking you about your digital business. That has clearly been the growth driver and the growth there was 82 percent in the quarter gone by. Are you confident that this type of growth will sustain? Any targets that you have set for your digital business?
A: We are happy to not that it has grown in the first half at 82 percent. Overall, when we did the initial public offering (IPO) last year, we were expecting it to be growing between 30 to 35 percent. Actually we grew the last quarter at 53 percent and it has further accelerated. I would estimate that we should be at around 70 odd percent, 60-70 percent for the full year and which is of course, a very good growth number. And all of this is still on the back of actually the infrastructure rollout. So, the broadband, 4G, etc. rollouts have still not yet fully happened. So, we are on a very confident wicket, I would say.
Mangalam: While your revenues on your digital business are growing, canyou give us a sense of what your operating profit is from both your digital business and your traditional media? Can you also give us what margins you are enjoying in both the divisions?
A: The overall margin for the company in general is in the range of between 24 and 28 percent at the earnings before interest, taxes, depreciation and amortisation (EBITDA) level and within that, it is not possible for me to give the breakup of the margin between traditional and digital, but all I can say is that the digital media enjoys a high operating leverage. The costs are obviously not growing as fast as the revenue and there are certain fixed elements in terms of the cost of infrastructure, equipment, etc. or even certain one time-digitisation costs that we incur for the content versus the revenue as it grows, the operating leverage is very high.
http://m.moneycontrol.com/news/business/hope-for-70-growth-after-tie-ups-shemaroo_4361941.html?utm_source=IW_DATA_stockpage
