Siti Networks Limited · NSE:SITINET
Siti Networks — Q2 FY2017 Earnings Presentation
29 slides from Siti Networks's earnings presentation
Slide 1: SITI Networks Limited Q2FY17 Investor Presentation
SITI Networks Limited Formerly known as SITI Cable Network Limited BSE : 532795 | NSE : SITINET | Bloomberg : SCNL:IN | Reuters : SITI.NS www.sitinetworks.com Q2FY17 Investor Presentation 1 SITI Networks Ltd. Confidential 1
Slide 2: Disclaimer
Disclaimer Some of the statements made in this presentation are forward-looking statements and are based on the current beliefs, assumptions ,expectations, estimates, objectives and projections of the directors and management of SITI Networks Limited (SITI Networks) about its business and the indust
Slide 3: Contents
Contents Slno Section Pg no 1 Industry Overview 4 2 Company Overview 10 3 Broadband- Vision & Strategy 17 4 Financials 23 5 Regulatory Development- Likely Impact 27 3
Slide 4: Industry Overview
werwoREs Industry Overview oo | GROUP
Slide 5: Indian TV industry-Expected CAGR Growth at 15.1%
Indian TV industry-Expected CAGR Growth at 15.1% Industry size and projections , INR Bn Incremental Revenue addition CY20 vs CY15 523 432 227.3 Value, INR Bn Percentage 355 289 190 208 412.5 TV 555 58% 234 174 384 193 159 356 138 305 330 Print 120 13% 283 1097.6 617 710 823 957 Films 81 9% 542 Other
Slide 6: Subscription Revenue growth expected to be solid
Subscription Revenue growth expected to be solid TV Industry size, INR Bn 365 Incremental Revenue addition CY20 vs CY15 320 242 276 Value, INR Bn Percentage 210 181 Subscription revenue 372 67% 733 637 361 407 468 548 Advertisement revenue 184 33% Total 556 100% 2015 2016P 2017P 2018P 2019P 2020P Su
Slide 7: Distribution Platform: Digital Cable vs. Others
Distribution Platform: Digital Cable vs. Others Digital Cable, owing to its two way communication capability, localized nature of service and immunity to weather conditions is well placed to serve Indian households Digital Analog Parameter DTH HITS IPTV Cable Cable Broadband 0 4 0 4 4 Cost of Infras
Slide 8: Size of Digitization Opportunity
Size of Digitization Opportunity Subscriber Universe, 170 Mn TV Households Phase 1 Phase 2 Phase 3 & Contiguous areas Phase 4, (86mn) (12 mn) (22mn) , (50 mn) 4 metros – Mumbai, Delhi, Kolkata, Area 38 cities with population > 1m 7,709 urban areas with a municipality Rest of India Chennai 31st Oct 2
Slide 9: MSOs focusing on ARPU improvement & monetization to increase net realizations
MSOs focusing on ARPU improvement & monetization to increase net realizations Current status of MSO Realization (INR/ Month/ Subscriber) Phase 1 Phase 2 Phase 3 Phase 4 ~150-175 <150 Consumer ARPU, paid to LCO 225+ Tax 200+ Tax (All Inclusive) (All Inclusive) LCO to MSO 100-130 90 Fixed Pay-out MSO
Slide 10: Company Overview
werwoREs Company Overview oo | GROUP
Slide 11: SITI Networks: A Pioneer in Indian Cable TV Distribution
SITI Networks: A Pioneer in Indian Cable TV Distribution 12.2 Mn 8.7 Mn 91,000 400 14.6 Lakh 1,95,000 Digital Cable Broadband Broadband Cable Universe HD Subscribers locations Presence Subscribers Homes Passed Subscribers Multi-System Operator (MSO) providing Digital/ Analog Cable TV and Broadband S
Slide 12: On a progressive growth path
On a progressive growth path 1992 Cable business started by promoters 2006 Wire and Wireless (India) Ltd. Incorporated 2007 Implemented CAS in metros of Delhi, Mumbai & Kolkata ; Listed on the stock exchanges 2008 Initiated mass Digitization through HITS Services 2009 Right Issued of INR45
Slide 13: Promoter Group - Corporate Structure
Promoter Group - Corporate Structure Launched in 1976, the Parent Group (“Essel Group”) is one of India’s leading business houses, with a dominant presence in Media India's leading vertically integrated media and entertainment group Leading producer, aggregator and distributor of Indian progra
Slide 14: An Experienced Management Team leads the Company
An Experienced Management Team leads the Company Mr. V D Wadhwa: Executive Director and CEO Mr. Wadhwa is an Alumnus of Harvard Business School & a fellow member of the Institute of Company Secretaries of India. He has over 30 years of work experience including over 20 years in multinational compani
Slide 15: Key Differentiators vs. Other MSOs
Key Differentiators vs. Other MSOs 1 Promoter entity is India’s leading Media conglomerate with interests spanning across broadcasting (One of India’s largest Part of a USD 9.6 Bn network of Indian entertainment channels), distribution (India’s first and largest DTH business) and SITI Networks (In
Slide 16: SITI Networks has a sizeable free float and institutional ownership
SITI Networks has a sizeable free float and institutional ownership Shareholding Pattern Key Investors 794 Mn Shares 0.8% Foreign 13.9% Institutions 6.1% 2.2% Acacia Partners 6.1% 71.0% Domestic Institutions Promoters Individuals Indian Companies Mutual Funds There has been further fund infusion of
Slide 17: Broadband- Vision & Strategy
Broadband- Vision & Strategy 17
Slide 18: Vision: To be a leading Broadband Company in 5 years
Vision: To be a leading Broadband Company in 5 years Strategy Increase Digital Subscriber base Broadband & VAS Margin Expansion Expand in Phase 3 & 4 territories Improve collections from LCOs via organic as well as inorganic Focus cities – NCR, Select cities of Optimization of (Content- Grow
Slide 19: SITI Networks is the best of both worlds: GPON and DOCSIS
SITI Networks is the best of both worlds : GPON and DOCSIS DOCSIS (Data Over Cable Service Interface Specification) Lower cost of ownership and of Advantages Leverage existing access to homes through cable 1 acquisition* distribution channel Highly suited for overhead delivery Passive network
Slide 20: Future-ready Hybrid network conditioned for Indian environment
Future-ready Hybrid network conditioned for Indian environment Features Hybrid (GPON + DOCSIS) GPON (FTTH) Subscribers • ~INR3000 • ~INR30,000 Acquisition Cost* CPE Cost • ~INR2000 • INR4000 Scalability • Very High • Moderate Network Type • Last mile overhead • Mostly underground Remote management •
Slide 21: Key Drivers for Cable Broadband in India
Key Drivers for Cable Broadband in India Projected Exponential increase in 2 Significant divergence in data rates 1 demand for Data Currently, 1 GB of data on a 3G Network costs ~INR200 vs. In India, internet traffic is expected to grow at a CAGR ~INR45 on DOCSIS 3 (Data over Cable Service Interface
Slide 22: SITI Networks targeting ~20% conversion of base by 2021
SITI Networks targeting ~20% conversion of base by 2021 India Internet connections Wireline Subscribers By Technology Internet Subscribers per 100 population 6% 6.3% 1.6% 12.5% DSL Rural 13 Dial Up 15.5% Ethernet/ LAN 64.1% Cable Modem Urban 60 94% Fibre & Leaseline Total 28 Wired Wireless Fixed Wir
Slide 23: Financials
werwoREs Financials oo | GROUP
Slide 24: FY16 Financial Snapshot: Steady Progress
FY16 Financial Snapshot: Steady Progress FY Consolidated Revenues (INR Mn) 12130 9370 5,612 7105 4837 5,313 3643 3,395 2,568 1,207 486 910 2,035 2,271 2,490 2,135 2,238 80 175 265 1,231 806 624 1,329 0- 495 458 677 283 FY12 FY13 FY14 FY15 FY16 Others Activation Broadband Carriage Subscription FY16 R
Slide 25: FY16: A year of Profitable Turn-around
FY16: A year of Profitable Turn- around EBITDA (INR Mn) Operating EBITDA (INR Mn) 1,060 1,095 3,230 1,684 453 1,259 870 192 192 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 (362) EBITDA as per Investor release. EBITDA includes other income EBITDA excluding activation income PBT Trends (INR Mn)
Slide 26: FY Profit & Loss Statement
FY Profit & Loss Statement Year Ended Income Statement CAGR (INR Million) FY16 Vs. FY12 FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 Net Operating Revenues 11,889 9,059 6,972 4,696 3,428 Other Income 241 311 131 140 214 Total Revenue 12,130 9,370 7,103 4,837 3,643 35.1% Total Expenditure 8,900 7,686 5,84
Slide 27: Regulatory Development- Likely Impact
Regulatory Development- Likely Impact 27
Slide 28: SITI well positioned to benefit from implementation of New Tariff Order
SITI well positioned to benefit from implementation of New Tariff Order Implementation of the network distribution model will shift the balance of power in favour of Distribution • Subscribers pay Phase neutral Minimum Rental of INR130 for 100 FTA SD channels; Can take additional FTA channels in bun
Slide 29: Thank You
werwoREs Thank You GROUP