Sony Music India Reports 11.27% Rise in Net Profit at Rs 227 Crore for FY2
Sony Music Entertainment India (SMEI) has reported a noteworthy 11.27% increase in net profit, reaching Rs 227 crore for the fiscal year ending March 2023, up from Rs 204 crore in the previous fiscal. Operating revenue also surged by 26% to Rs 745 crore, with 64% of the revenue originating from international sources.
Digital, broadcasting, and licensing income experienced a robust 25% growth, amounting to Rs 728 crore, while service income doubled to Rs 17 crore. The company's revenue streams include the monetization of intellectual property rights, content production, and brand promotion services.
Expenses, however, rose by 50% to Rs 467 crore, attributed to a 75% increase in royalty expenses at Rs 311 crore and a 4% uptick in advertising expenses at Rs 54 crore.
SMEI, a subsidiary of Sony Group Corporation, disclosed a rise in cash and cash equivalents to Rs 213 crore for FY23. The company, a key player in the music industry competing with T-Series and Zee Music, refrained from commenting on the financials.
Sony Group's corporate strategy highlighted SMEI's significant market share exceeding 20% in India. The company is actively expanding its local music business by establishing new labels and acquiring Bollywood music catalogues.
In collaboration with Sony Pictures, SMEI formed Sony Entertainment Talent Ventures India, an equal joint venture fostering opportunities for Indian artists globally. It also entered an equal JV with Collective Artists Network India, called Big Bang Records, giving SMEI the option to purchase Collective Artists' stake in the company after a three-year lock-in period and a two-year expiration period.
