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Tips Music MD reaffirms profit growth target, outlines benefits of TikTok partnership
While the tie-up with TikTok may not add significantly to the revenue, it is expected to help expand the company’s presence in other geographies.
Kumar Taurani, CMD of Tips Music is confident of achieving the 30% revenue and profit target outlined earlier in the year.
In an interview with CNBC-TV18, Taurani also discussed Tips' recent partnership with social media platform TikTok to expand its reach to global audiences.
"The short format content is really doing well. Tiktok is not available in India and China, but this partnership will help us in other parts of world. So I feel it's a good tie-up," Taurani said.
While Tips does not anticipate significant revenue from the tie-up, it believes the partnership will give audiences broader access to its music across platforms, ultimately supporting revenue growth.
He clarified that the partnership is not connected to the existing licensing agreement that Tips has with Warner Music and therefore, there is no conflict of interest.
The partnership allows the platform to host the entire extensive music catalogue of Tips globally and is designed to cater to the growing demand for Indian music among international audiences.
Currently, around 75% of Tips' business comes from the various digital platforms, with YouTube contributing nearly 60%, Spotify contributing 20%, and all other platforms contributing the balance.
Earlier this year, Tips signed a four-year global exclusive contract with Warner Music Group for music distribution across various platforms.
The deal includes upfront payments and minimum guarantees for Tips, with Warner Music taking on the commercial and distribution responsibilities for Tips’ entire frontline and catalogue music.
Covering over 30,000 songs in 23 Indian languages, this partnership ensures comprehensive representation on all major audio streaming apps.
Also Read: Expect 35% of business from Warner next year onwards, says Tips Music
In July-September 2024 (Q2FY25), the company achieved a revenue growth of 32% year-on-year (YoY) to ₹81 crore. The content costs jumped 197% YoY to ₹14 crore. However, earnings before interest, taxes, depreciation, and amortisation (EBITDA) improved by 19% YoY to ₹59 crore, with margin remaining at 73.77%. Net profit also grew 21% YoY to ₹48 crore.
Also Read: ByteDance's TikTok cuts hundreds of jobs in shift towards AI content moderation
The company launched 125 new songs, including 39 film and 86 non-film tracks, and released two musical short films, “Tedi Medi” and “Beinteha”, which received positive feedback.
YouTube subscribers grew by 21%, reaching 108 million, and the company declared an interim dividend of ₹2 per share, amounting to ₹25.56 crore.
The total payout to shareholders, including dividends and buybacks, reached ₹97.74 crore in FY25 so far.
Tips also reported a steady increase in its market share on audio digital platforms such as Spotify and Saavn.
Tips Music has a market value of about ₹11,282.42 crore. Its shares have risen by nearly 27% over the past year.
For more details, watch the accompanying video
Catch all the latest updates from the stock market here
In an interview with CNBC-TV18, Taurani also discussed Tips' recent partnership with social media platform TikTok to expand its reach to global audiences.
"The short format content is really doing well. Tiktok is not available in India and China, but this partnership will help us in other parts of world. So I feel it's a good tie-up," Taurani said.
While Tips does not anticipate significant revenue from the tie-up, it believes the partnership will give audiences broader access to its music across platforms, ultimately supporting revenue growth.
He clarified that the partnership is not connected to the existing licensing agreement that Tips has with Warner Music and therefore, there is no conflict of interest.
The partnership allows the platform to host the entire extensive music catalogue of Tips globally and is designed to cater to the growing demand for Indian music among international audiences.
Currently, around 75% of Tips' business comes from the various digital platforms, with YouTube contributing nearly 60%, Spotify contributing 20%, and all other platforms contributing the balance.
Earlier this year, Tips signed a four-year global exclusive contract with Warner Music Group for music distribution across various platforms.
The deal includes upfront payments and minimum guarantees for Tips, with Warner Music taking on the commercial and distribution responsibilities for Tips’ entire frontline and catalogue music.
Covering over 30,000 songs in 23 Indian languages, this partnership ensures comprehensive representation on all major audio streaming apps.
Also Read: Expect 35% of business from Warner next year onwards, says Tips Music
In July-September 2024 (Q2FY25), the company achieved a revenue growth of 32% year-on-year (YoY) to ₹81 crore. The content costs jumped 197% YoY to ₹14 crore. However, earnings before interest, taxes, depreciation, and amortisation (EBITDA) improved by 19% YoY to ₹59 crore, with margin remaining at 73.77%. Net profit also grew 21% YoY to ₹48 crore.
Also Read: ByteDance's TikTok cuts hundreds of jobs in shift towards AI content moderation
The company launched 125 new songs, including 39 film and 86 non-film tracks, and released two musical short films, “Tedi Medi” and “Beinteha”, which received positive feedback.
YouTube subscribers grew by 21%, reaching 108 million, and the company declared an interim dividend of ₹2 per share, amounting to ₹25.56 crore.
The total payout to shareholders, including dividends and buybacks, reached ₹97.74 crore in FY25 so far.
Tips also reported a steady increase in its market share on audio digital platforms such as Spotify and Saavn.
Tips Music has a market value of about ₹11,282.42 crore. Its shares have risen by nearly 27% over the past year.
For more details, watch the accompanying video
Catch all the latest updates from the stock market here
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