Tips Industries extends agreement with Warner Music
Kumar Taurani, CMD of Tips Industries said that the agreement expansion with Warner Music will bring advantages to both parties.
Tips Industries, an Indian company engaged in music recording, film production, promotion, and distribution. The company stated that the agreement with Warner Music will bring advantages to both parties.
Tips announced an expansion of an intellectual property (IP) agreement with Warner Music, where Warner Music will get full global access to Tips Music’s catalogue. Also, recently, the company announced a buyback where it will purchase about 0.5% equity at ₹625 per share. The record date for the share buyback is yet to be determined.
Speaking about the deal expansion, in an interview with CNBC-TV18, Kumar Taurani, CMD of Tips Industries said, “I will get 85% revenue from the deed. I can't reveal the number, but this is 10 times more than the earlier deal. And it's a good deal for both of us.”
The music content company’s net profit increased 72% in the December quarter to ₹35 crore from the previous year. Its revenue came in at ₹65 crore, 27% more than the previous year.
In the second half of December, around 85.82 lakh shares or 6.7% equity of the company changed hands in block deals at an average price of ₹344 per share, taking the total deal size to around ₹299 crore.
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In April 2023, Tips Industries split one stock of Rs 10 into 10 shares of ₹1 each.
Warner Music has been exclusively distributing Tips Music’s more than 13,000-strong Hindi catalogue since 2020 and has played an important role in growing the company’s Bollywood soundtracks on the international stage. Warner Music, with its global teams, have offered specialist commercial support across various digital service providers (DSPs) - pitching and landing key playlist spots across frontline and catalogue releases.
Also Read | Apple Music is testing a feature to let you import playlists from Spotify and other streaming services
The market capitalisation of Tips Industries is around ₹6,564.53 crore. Its shares have gained close to 242% in the past year.
For the entire interview, watch the accompanying video
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