Balaji’s consolidated revenue at Rs 625 crore; Digital business turns cash positive

Balaji Telefilms Ltd announced its financial results for the fourth quarter and twelve months ended March 31, 2024. The Group reported 6% increase in revenue to Rs 625.1 crores in 12M FY24 vis-a-vis Rs 593 crores in 12M FY23. Group level EBITDA profit stood at Rs 46 crore in 12M FY24 vis-a-vis EBITDA loss of Rs 19.1 crore in 12M FY23. The company has been focused on strategic cost rationalizing across business segments, especially the Group’s digital business (ALT Digital).

These strategic measures enabled the Company to achieve significant improvement at the EBITDA level and expected to yield positive results going forward. Profit after tax in 12M FY24 is Rs 19.4 crore compared to loss after tax in previous comparative periods i.e. Rs 38 crore in 12M FY23.

Shobha Kapoor, Managing Director, Balaji Telefilms Limited said, “FY24 has been exceptional year for the group. Movie business generated healthy EBITDA margin with ‘Dream Girl 2’ and ‘Crew’ receiving great response from audience and earning more than 100 crores worldwide. Digital business turnaround started generating results with positive cash."

She added, "In the coming year, we expect the business to scale. TV business continues to be flagship vertical, generating sustainable top-line and consistent margin. We are merging ALT and MFPL with parent entity, this will boost efficiency and streamline operations. We are confident that our pipeline for the year ahead across Movies, TV and Digital will enable us to continue our growth trajectory in the entertainment domain and ensure a thriving and sustainable business.”

Television - Revenue increased by 7% to Rs 367 crore in 12M FY24: Balaji had 7 shows on-air during the quarter across 4 leading broadcasters. In 12M FY24, hours of production increased by 3% to 1156 hours compared to 1127.5 hours in 12M FY23. In Q4 FY24, realization per hour increased by 3.5% to X 31.6 lakhs per hour compared to previous year.

Digital - EBITDA losses narrowed by 68% in FY24: Strategy to rationalize costs across the Group, especially in the digital business, has yielded results for Balaji. Digital business for the quarter generated positive cash. ALTT has 126+ shows live on the platform. EBITDA losses narrowed by 68% in 12M FY24 at Rs 21 crores compared to 12M FY23 at Rs 66 crores and Rs 136 crores in 12M FY22. Digital business’ OTT platform, ALTT’s subscription revenues stood at Rs 18.45 crore for 12M FY24 wherein a total of 12.77 lacs subscriptions were sold including 5.96 lac renewals. During the year, 18 new show was launched on ALTT.

Movies — 3 Theatrical release in FY24, Dream Girl2 and Crew each earning more than 100 crores worldwide.: Total of 5 movies were released, 2 movies on Digital platforms, ‘U-turn’ starring Alaya F in April and ‘Kathal’ starring Sanya Malhotra in May this year on Zee5 and Netflix respectively and 3 Theatrical release, Dream Girl 2 starring Ayushmann Khurrana and Ananya Panday in August which subsequently released on Netflix in October, Thank You for Coming staring Bhumi Pednekar in October which subsequently released on Netflix in December and Crew staring Kapoor Khan, Tabu & Kriti Sanon released in March which subsequently released on Netflix in May. ‘Dream Girl-2" and ‘Crew’ earned more than 100 crores worldwide at box office.

The Board of Directors in their meeting held on February 09, 2024 granted approval for proposed amalgamation of Alt Digital Media Entertainment Limited ('ALT') and Marinating Films Private Limited ("MFPL'), wholly owned Subsidiaries of the Company, with Balaji Telefilms Limited (Holding Company). In their meeting on May 30, 2024, the Board of Directors considered and approved the Draft Composite Scheme of Arrangement between Balaji Telefilms Limited (BTL), ALT, and MFPL and their respective shareholders. The Scheme is subject to approvals of shareholders and / or creditors, and other concerned regulatory authorities.

The company said the merger will have a positive impact by Consolidating content production operations of BTL, ALT, and MFPL to boost efficiency, eliminate redundancies, and harness synergies. Enhance financial capacity for growth by pooling resources within a unified entity. Streamline compliance and reduce costs by minimizing the number of group entities, leading to improved ROCE and a more efficient balance sheet.