Ullu, an Indian Over-The-Top (OTT) media streaming platform known for its edgy content has reported a significant revenue growth.
According to the annual financial statement filed with the Registrar of Companies, the OTT platform reported a two-fold increase in revenue from operations with its profit surging by almost four times, reaching Rs 93.1 crore in the fiscal year ending March 2023. This marked a significant growth compared to the Rs 46.8 crore recorded in the previous fiscal year, FY22.
Amidst the challenges faced by other OTT platforms, Ullu allocated 50 per cent of its total expenditure to the cost of production. Benefiting from increasing scale and cost efficiency, Ullu boosted its profits by 3.87 times, reaching Rs 15.10 crore in FY23 compared to Rs 3.90 crore in FY22. The company also saw improvements in its ROCE and EBITDA margin, reaching 91 per cent and 24 per cent respectively. At a unit level, it spent Rs 0.78 to earn a rupee in FY23.
The only source of revenue for the company was the income generated from the sale of subscriptions.
According to PornHub data, India was placed at number 6 in the list of Top Prom Watching Countries in the world. The 2015 data revealed Indians spent over nine minutes watching porn.
OTT Platform's production costs and advertising expenses
The expenditure on production for this OTT platform now constitutes approximately 50 per cent of the company's total expenses. This cost has surged by around 87 per cent Rs 35.9 crore in the financial year 2023 from Rs 19.2 crore recorded in 2022. With an additional uptick in advertising and promotion expenses, skyrocketing nearly 300 per cent or fourfold, totaling approximately four times in the financial year 2023.
Moreover, various other expenditures, encompassing employee benefits, legal and professional services, rent, IT, and miscellaneous costs, have undergone a significant upswing. These expenses reached Rs 72.3 crore in 2023, reflecting a 74.64 per cent increase. Meanwhile, this figure stood at Rs 41.4 crore in the financial year 2022.
What is Ullu?
Ullu is a membership-based platform that streams web series, movies, and other types of content. The company's sole source of revenue is its subscription service, through which the startup generates income. According to startup data intelligence platform The Credible, the company's founder and CEO, Vibhu Agarwal, holds approximately 65 per cent ownership in the company. Meanwhile, the remaining 35 per cent ownership is held by his wife, Megha Agarwal.
The OTT platform offers 7-day, 1 month, 3 month and one year subscription offers to subscribers with rates ranging from Rs 99 to Rs 594.
Ullu growth during covid
During the lockdown, the adult content streaming platform saw a 220 per cent increase in the first two months. Even after the growth rate slowed to 150 per cent, it remained higher than before COVID. Moreover, Ullu's user base has grown by 200 per cent.
