Shemaroo Entertainment Limited – Investor Presentation Summary

Key Operational Highlights

  • Digital Media revenue grew 25.6% YoY in Q2-FY27 to INR 756 Mn, driven by B2B licensing deals and higher YouTube ad revenue
  • Traditional Media revenue declined 21.1% YoY to INR 656 Mn due to prolonged BARC blackout dampening advertiser sentiment and deferred TV B2B licensing deals
  • Shemaroo FilmiGaane YouTube channel surpassed 75.0 million subscribers, while Shemaroo Ent crossed 62.3 million subscribers
  • Company garnered approximately 9.6 billion views during Q2 across its portfolio channels
  • Released 9 new titles on ShemarooMe Gujarati platform including movies 'Laalo Krishna Sada Sahaayate' and 'Jindagi Once More', and web series 'Chaskela S1', 'Sada Che Ni Bus', 'Tuition' and 'Ok Boss'
  • Served as worldwide digital and satellite distribution partner for Telugu movie 'Ramba Oorvasi Menaka'

Key drivers of operational performance: Growth driven by B2B licensing deals in digital segment, higher YouTube ad revenue, and content expansion on ShemarooMe Gujarati platform

Segment-wise Performance

  • Digital Media: Q2-FY27 revenue INR 756 Mn (25.6% YoY growth), H1-FY27 revenue INR 1,313 Mn (3.0% YoY growth)
  • Traditional Media: Q2-FY27 revenue INR 656 Mn (21.1% YoY decline), H1-FY27 revenue INR 1,416 Mn (8.8% YoY decline)

Explanation of significant changes in segment performance: Traditional media decline due to BARC ratings blackout impacting advertiser sentiment and deferred TV licensing deals; Digital growth driven by B2B deals and YouTube performance

Financial Highlights

Revenue: Rs. 1,412 Mn (Q2-FY27), Rs. 2,729 Mn (H1-FY27)

EBITDA: Rs. (23) Mn (Q2-FY27), Rs. (42) Mn (H1-FY27)

PAT: Rs. (75) Mn (Q2-FY27), Rs. (156) Mn (H1-FY27)

EPS: Rs. (2.57)/share (Q2-FY27), Rs. (5.38)/share (H1-FY27)

Margins: EBITDA Margin (1.65)% (Q2-FY27), (1.52)% (H1-FY27); Net Profit Margin (5.31)% (Q2-FY27), (5.70)% (H1-FY27)

YoY/QoQ comparison: Revenue declined 1.5% YoY in Q2 but improved 7.3% QoQ; EBITDA improved 95.7% YoY but declined 28.1% QoQ; Net loss improved 83.4% YoY and 6.9% QoQ

Drivers of financial performance: Significant YoY improvement due to cost rationalization and reduced losses from new initiatives (INR 199 Mn expense in Q2-FY27 vs higher expenses in previous periods)

Key Risks: Prolonged BARC ratings blackout, geopolitical uncertainties, increasing input costs affecting advertiser sentiment

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Other Equity INR 2,271 Mn (H1-FY27)

Current Assets/Liabilities: Current Assets INR 5,446 Mn, Current Liabilities INR 4,434 Mn (H1-FY27)

Working Capital/Leverage Metrics: Short Term Borrowings INR 2,975 Mn (H1-FY27)

Financial Health Insights: Cash and Cash Equivalents INR 53 Mn, Other Bank Balances INR 17 Mn (H1-FY27)

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Not Specified

Strategic & R&D Initiatives

  • Implementing strategic measures including cost rationalization across traditional business
  • Increased investment and focus across digital business
  • Disciplined content investments aimed at enhancing operational efficiency and safeguarding profitability
  • Expansion of ShemarooMe Gujarati platform with new content releases

Expected impact on growth: Digital revenue growth expected to continue driven by platform expansion and content investments

Strategic Rationale: Navigating industry challenges through cost optimization and digital focus

Industry Trends & Business Environment

Macro/Industry Trends: Prolonged BARC ratings blackout dampening television industry revenues; festive season expected to boost advertising demand; geopolitical uncertainties and increasing input costs affecting advertiser sentiment

Impact on Company: Traditional media segment significantly impacted by BARC blackout; digital segment showing resilience and growth

Management Commentary & Growth Outlook

Strategic Outlook: Company implementing cost rationalization, increased digital focus, and disciplined content investments to enhance operational efficiency

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Persistent geopolitical uncertainties and input cost pressures may dampen advertiser sentiment; BARC blackout continuation likely to weigh on television revenues