This multibagger stock partners with TikTok - Do you own it?
Today, the stock closed 2.96 per cent higher at Rs 874.05. In the past month, the stock is up 9.8 per cent.
In a strategic leap to connect with global audiences, Tips Music Ltd, a powerhouse in India’s music industry, has announced a direct partnership with TikTok. This move opens a new chapter for Tips Music as its expansive library, boasting over 31,000 songs, becomes globally accessible through TikTok's immensely popular short-form video platform.
The partnership excludes China and India but covers major markets with a substantial appetite for Indian music. TikTok’s massive user base will now have access to Tips Music’s iconic Bollywood classics and regional hits. This collaboration isn't just about music; it’s about cultural exchange and bringing Indian melodies to the forefront of global entertainment.
Financial Performance
In Q2 FY '25, the company reported a revenue of Rs 80.6 crores, marking a 32 per cent growth compared to the same period last year. Profit after tax also rose by 21 per cent, reaching Rs 48.2 crores. For the first half of FY '25, revenue surged by 36 per cent to Rs 154.5 crores, while PAT soared by 37 per cent to Rs 91.8 crores.
Such impressive numbers are supported by a robust EBITDA margin of 73.8 per cent, reflecting the company’s operational efficiency. To reward its shareholders, Tips Music declared an interim dividend of Rs 2 per share for FY 2025.
Digital Growth
The partnership with TikTok aligns with Tips Music’s broader digital strategy. The company is investing heavily in digital platforms like YouTube, Spotify, and Amazon Music to enhance its reach. With a growing YouTube subscriber base of 108 million.
Management aims to achieve a 30 per cent overall growth this year while also targeting a market share increase to 10-11 per cent in the next few years.
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This ambition is further supported by a minimum guarantee (MG) deal with Warner Music, ensuring steady revenue growth despite disruptions like the Wynk deal shutdown.
How many songs launched in Q2FY25?
Content remains at the heart of Tips Music's strategy. With 125 songs launched in Q2 FY '25, the company is leveraging both film and non-film music to diversify its offerings. New releases now contribute 10-15 per cent of total revenue, with the catalogue continuing to thrive.
Management Commentary
Kumar Taurani, Managing Director of Tips Music, expressed his excitement, saying, "The partnership with TikTok is a monumental step in expanding our global footprint. TikTok’s platform is a melting pot of cultures, and our music is the perfect fit to resonate with its diverse audience."
Today, the stock closed 2.96 per cent higher at Rs 874.05. In the past month, the stock is up 9.8 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.