Revenue from digital media surged 31.6 percent YoY to Rs 448 million, and it now contributes 34 percent of total revenue as on Q4FY19.
Mumbai-based content distribution platform Shemaroo Entertainment posted revenue growth of 11.7 percent year-on-year to Rs 132.2 crore during its fourth quarter results. The company’s profit after tax grew 10 percent YoY to Rs 20.6 crore.
Revenue from digital media surged 31.6 percent YoY to Rs 44.8 crore, and it now contributes 34 percent of total revenue as on Q4FY19.
Growth in the digital media segment was led by expanding subscriber base on YouTube to over 21 million for the Filmy Gaane channel, and to 15 million plus for the Shemaroo Entertainment channel, as per a report by Elara Capital.
Combined YouTube views crossed the 1.25 billion mark in this quarter, averaging an overall count of 40 million views per day, the report said, adding that this will make the company confident that digital ad spends will increase and YouTube will capture a good share of it.
Ad growth spend on television was muted with a growth of 4.4 percent YoY in Q4FY19 to Rs 87.4 crore, as traditional media suffered a slowdown in the second half of this fiscal after TRAI's tariff order impacted broadcasters, distributors and cable operators, the report stated. Growth of video consumption on over the top (OTT) platforms and subscription-based models also dragged revenue.
The company’s EBITDA margin sustained in Q4FY19, as ShemarooMe app launch expenses and brand refreshment expenses were included as operating expenses, and not capitalised, the report said. The company earlier this year forayed into the online video streaming space with ShemarooMe and has plans to focus on its distribution in FY20.
As per the report, the company is expecting the traditional media segment to grow at 10 percent for FY19, as compared to 9 percent in FY18. The company plans to outperform the industry average by 2 percent in the upcoming year, it added.The company also sees a good syndication opportunity on the back of growing video consumption, it added.