Shemaroo says economic slowdown impacted business from YouTube

Shemaroo Entertainment delivered tepid numbers in the December quarter. Hiren Gada, CEO and CFO of Shemaroo Entertainment, discussed the company's performance and the outlook for the 2020 in an interview with CNBC-TV18.

Gada said that in the next 3-4 years the company is aiming for an equal split across its digital and traditional business. “Next 3-4 years down the line, we should be 50:50. This year we hope to be about one-third and two-third between digital and traditional. This year our core customer base on the traditional side which is the broadcasters, faced tremendous slowdown on the ad side as well as on the new tariff orders. So the content investment has been low-key and that has affected the entire ecosystem.

“The regular operating business — we are looking at our Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin is in the line of approximately 25 percent which even now in this current quarter has been achieved but the expenses on account of new initiative which has dragged it down,” he added.