Shemaroo op revenue down due to COVID2019 impact

Revenue was down 39.7%, q-o-q loss lower at Rs 12.81 crore

BENGALURU: Indian content creator, aggregator distributor, specifically in the media and entertainment industry and now television broadcaster, Shemaroo  Entertainment Ltd (Shemaroo) reported 39.7 percent drop in consolidated operating revenue at Rs 86.2 crore for the quarter ended 30 June 2020 (Q1 2020, quarter or period under review) as compared to the Rs 143.03 crore  for corresponding year ago quarter Q1 2020. Consolidated operating revenue for Q4 2020 was Rs 122.74 crore. However, the company reported a lower consolidated loss of Rs 12.81 crore for the period under review as compared to the loss of Rs 14.07 crore for the immediate trailing quarter (Q4 2020). The company had reported consolidated profit after tax (PAT) of Rs 16.38 crore in Q1 2020.

Shemaroo revenue from traditional media in Q1 2021 declined 44.5 percent to Rs 52.3 crore from Rs 94.30 crore in Q1 2020. Revenue from traditional media in Q4 2020 was Rs 76.9 crore. Shemaroo’s revenue from digital media also fell in Q1 2021 to Rs 33.9 crore from Rs 48.7 crore in Q1 2020 (y-o-y decline of 30.4 percent) and Rs 45.8 crore (q-o-q decline of 26 percent) in Q4 2020. However, contribution to revenuefrom digital media has been increasing over time says the company. In Q1 2020, digital media revenue’s contribution to overall revenue was 34.06 percent, which increased to 39.33 percent in Q1 2021. In FY 2020, the contribution of revenue from digital media to operating revenue grew to 38.55 percent from 16.94 percent in FY 2016. Please refer to the figure below:

Sheamroo says in an investor presentation for Q1 2021 that the nationwide lockdown due to COVID2019 coupled with the overall sluggishness in the Indian economy impacted consumption and hence advertisingspends by brands. It says that during the quarters, deals were either deferred or re-negotiated which had an impact on the margins and cash flows. The company says that since it had alreadyundertaken cost rationalization measures even before the lockdown, it helped the company to tide over this pandemicoperationally. However, Shemaroo says that is cognisant of the external environment and has thereby undertaken several measures to optimize the operations andrationalize thosebusinesses that have been severely impacted.

Shemaroo’s consolidated operating EBITDA for Q1 2020 was negative Rs 4.89 crore as compared to consolidated operating profit of Rs 31.91 crore for the corresponding year ago quarter. For Q4 2020, Shemarro had negative EBITDA of Rs 3.08 crore.

Let us look at the other numbers reported by Shemaroo

Consolidated total income (operating revenue plus other income) for Q1 2021 declined 39.8 percent y-o-y to Rs 86.55 crore from Rs 1543.87 crore in Q1 2020. Consolidated total expenditure for Q1 2021 reduced 15.6 percent y-o-y to Rs 99.82 crore from Rs 118.32 crore in Q1 2020. 

Consolidated operating costs for the period under review declined 19.1 percent y-o-y to Rs 71.16 crore from Rs 87.91 crore in Q1 2020. Employee benefit expense in Q1 2021 was almost flat (reduced by 0.2 percent) y-o-y at Rs 15.72 crore as compared to Rs 15.75 crore in Q1 2020, Finance costs in Q1 2021 increased 18.9 percent to Rs 6.86 crore from Rs 5.77 crore in Q1 2020. Other expenses in Q1 2021 reduced 43.6 percent y-o-y to Rs 10.22 crore from Rs 7.46 crore in the corresponding year ago quarter.

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