Profit rose to 460.7 million Indian rupees ($5.59 million) in the three months ended September 30.
Bangalore:
Saregama India on Monday reported a 36% jump in second-quarter profit as the record label licensed more movie songs to its streaming partners following a rebound in the country’s film industry.
Profit rose to 460.7 million Indian rupees ($5.59 million) in the three months ended September 30, up from 338 million rupees a year ago.
Saregama, owned by soccer-to-electric conglomerate RP-Sanjiv Goenka Group, said its revenue from operations grew nearly 30% to Rs 1.89 billion.
Revenue from its music business, which licenses over 130,000 song lists for streaming apps like Spotify and Amazon Music, and television channels like Kalaignar TV, rose 24% to Rs 1.51 billion.
Saregama, which released the country’s first studio-recorded song in British-ruled India 120 years ago, said its songs have been used by several brands including WhatsApp, Uber and Dettol, increasing its licensing revenue.
Widespread easing of COVID-19 restrictions this year has allowed filmmakers to release more films this year – the songs featured in films are among the most listened to in the country.
And while many films this year did not live up to the expectations on both the financial and creative fronts, songs from films like “Gangubai Kathiawadi” and “Nane Varuviyan” have proved to be hits in the music junkie country.
Higher revenue, including sales of its Caravan portable music player, helped Saregama offset a 32% increase in total expenses.
Shares of Saregama climbed 2% to Rs 383.50 as of 0805 GMT on Monday, after a fall of nearly 28% this year.
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