Ullu Adult Video Streaming Reports 2X Growth In Revenue, 4X Profit To Rs 93.1 Crore In FY23
Indian over-the-top (OTT) media streaming platform Ullu, known for its engaging content, has reported significant revenue growth.
According to the annual financial statement filed with the Registrar of Companies, the OTT platform has recorded a two-fold growth in revenue from operations and an almost four-fold increase in its profit to Rs 93.1 crore in the financial year ending March 2023. A significant increase compared to Rs 46.8 crore recorded in the previous financial year, FY22.
Amid the challenges faced by other OTT platforms, Ullu allocated 50 percent of its total spend towards production costs. Benefiting from growing scale and cost efficiency, Ullu grew its profits by 3.87x to Rs 15.10 crore in FY23 compared to Rs 3.90 crore in FY22. The company also saw improvement in its ROCE and EBITDA margins, which reached 91 percent and 24 percent, respectively. At the unit level, it spent Rs 0.78 to earn one rupee in FY23.
The company’s only source of revenue was the income generated from the sale of subscriptions.
According to Pornhub data, India was ranked at number 6 in the list of top prom watching countries in the world. Data from 2015 revealed that Indians spent more than nine minutes watching porn.
Production costs and advertising expenses of OTT platforms
The expenditure on production of this OTT platform now accounts for about 50 percent of the company’s total expenses. This cost has increased by almost 87 per cent to Rs 35.9 crore in financial year 2023 from Rs 19.2 crore recorded in 2022. With additional increases in advertising and promotional expenses, sales skyrocketed by nearly 300 percent or four times, almost quadrupling the overall financials. Year 2023.
In addition, there has been a significant increase in various other expenses including employee benefits, legal and professional services, rent, IT and miscellaneous costs. This expenditure reached Rs 72.3 crore in 2023, showing an increase of 74.64 percent. Whereas in the financial year 2022 this figure was Rs 41.4 crore.
What is an Ullu?
Ullu is a subscription-based platform that streams web series, movies, and other types of content. The company’s only source of revenue is its subscription service, through which the startup generates income. According to startup data intelligence platform The Credible, its founder and CEO Vibhu Agarwal holds about 65 percent ownership in the company. Meanwhile, the remaining 35 percent is owned by his wife Megha Agarwal.
The OTT platform offers 7 days, 1 month, 3 months and one year subscription to customers at rates ranging from Rs 99 to Rs 594.
Ullu development during Covid
During the lockdown, adult content streaming platforms saw a growth of 220 percent in the first two months. Even after the growth rate slowed down by 150 percent, it remained higher than before Covid. Additionally, Ullu’s user base has grown by 200 percent.
