Entertainment Network (india) Limited · NSE:ENIL
Entertainment Network (india) — Investor Presentation (December 2021)
61 slides from Entertainment Network (india)'s investor presentation, Dec 9, 2021
Slide 1: Entertainment Network (India) Limited cover letter
entertainment network (India) limited Corporate Office: 14th Floor, Trade World, D-Wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, India. Tel: 022 6753 6983. December 9, 2021 BSE Limited, National Stock Exchange of India Rotunda Building, P. J. Towers, Limited
Slide 2: Stronger post Covid
Stronger post Covid Update on FY21 and H1, FY22 1
Slide 3: One: FM Radio
One: FM Radio Volumes back, pricing soon 2
Slide 4: As pandemic waxed and waned, so did our revenues
As pandemic waxed and waned, so did our revenues Rs crs Possible revenue path, had 2nd wave not struck H1FY21 numbers are without one-time commission from ADMC Both FCT and non-FCT revenues fell 3
Slide 5: Radio hit the hardest, TV/digital least
Radio hit the hardest, TV/digital least…. Radio Print OOH TV Digital BTL - On- Very Low Low Low Low ground High ATL – Retail Very Very Low Low Low ads (Shops) High High ATL – Brand High High Very Low Low ads (Corp) High Traffic/ Very Very Very Low Low Logistics High High High Subscription/ NA High N
Slide 6: This shows up in the results
This shows up in the results…. % Revenue Growth (FY21 over FY20) Sl. No. Year Radio Print TV 1 ENIL (50.6%) 2 Radio City (48.5%) 3 HT Media (63.4%) (46.6%) 4 HMVL (Hindi) (32.2%) 5 Jagran Prakashan (36.5%) 6 DB Corp (40.3%) (31.7%) 7 NDTV (11.2%) 8 Zeel (8.6%) 9 TV 18 (13.1%) 10 SUN TV (8.4%) 11 TV
Slide 7: Non-FCT fall led by on-ground
Non-FCT fall led by on-ground…. Path had 2nd wave not struck Path on-ground should take after Covid ends Others includes other operating income Core solutions are on a strong footing 6
Slide 8: Digital has grown smartly
Digital has grown smartly…. Path had 2nd wave not struck Others includes other operating income As On-ground recovers, so will overall Solutions 7
Slide 9: Pricing next: volumes now above pre-pandemic levels
Volumes now > pre-pandemic levels ….pricing next Volumes vs Pricing 18,000 60.0% 16,000 50.0% 14,000 12,000 40.0% 10,000 30.0% 8,000 6,000 20.0% 4,000 10.0% 2,000 - 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 Gross ER Capacity Utilisation (%) We expect price
Slide 10: Mirchi maintains volume market share
Mirchi maintains volume market share… …and retains pricing premium over competition 9 9
Slide 11: Cost control – now lean and mean
Cost control – now lean and mean…. Rs crs -94crs +24crs • Opportunity for higher EBITDA margins with future revenue growth 10
Slide 12: Radio Way-forward
Radio Way-forward • Whenever the economy is sluggish…..but shops are open….radio grows fast • Why? Because advertisers spend more on promotions. No medium like radio for promotions • We expect full recovery in radio in FY23 (back to FY20 levels) • We expect radio to grow at 5-8% CAGR from FY23 to FY
Slide 13: Two: Solutions
Two: Solutions Share rising, margins rising Total Addressable Market in Solutions: Rs 15,000 crs – 20% of total advertising spends 12
Slide 14: What is our Solutions product?
What is our Solutions product? • No marketing/communications challenge can be solved by any one medium. – A strong solution needs multiple media vehicles • Marketers don’t have the same challenge all over India – Solutions must be “hyper-local”. A different solution for Coimbatore than for Vadodara
Slide 15: Who are our competitors?
Who are our competitors? Small cities, • For digital-first solutions small clients – Google/Fb – SM influencer agencies/Digital media agencies – Telco aggregators (InMobi) Major strength • For general solutions – Some small TV channels (they mostly do AFPs)/some event companies • Addressable market
Slide 16: Can we scale up Solutions?
Can we scale up Solutions? • Challenges for scaling up: – Most of the solutions we design are bespoke solutions (Creative limitation) – Reaching lacs of clients (sales team limitation) – Execution of solutions (Execution limitation) • Our approach to scaling up: – Building an online repository of id
Slide 17: Share of Solutions revenue
Share of Solutions revenue Non FCT to become 50% by FY25 16
Slide 18: Solutions margins are rising
Solutions margins are rising…. • Margins rising – reducing use of on-ground and better commercial negotiations 17
Slide 19: Within Solutions, share of Digital is rising
Within Solutions, share of Digital is rising 60.0% 50.0% 25% 40.0% 30.0% 20.0% 25% 10.0% 0.0% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY25 Solutions Digital 18
Slide 20: Examples of Solutions
Examples of Solutions ‘etna
Slide 21: Friendship Jam – Client Brief
Friendship Jam Client Brief To increase user engagement on the app and user acquisition 20
Slide 22: Friendship Jam – Mirchi Idea
Friendship Jam Mirchi Idea Due to corona, people were increasingly turning to digital platforms. Seeing this as an opportunity, Mirchi created an emotional connect for people by creating friendship bonds between friends via jamming on Smule. This lead to an increase in engagement and acquisition 21
Slide 23: Friendship Jam (Video)
Friendship Jam (Video) 22
Slide 24: Wazirx (To the moon) Client Brief
Wazirx Client Brief (To the moon) To build brand awareness for WazirX as India’s leading cryptocurrency exchange as well as awareness for Bitcoin among India’s new generation of technocrats. 23
Slide 25: Wazirx (To the moon) Mirchi Idea
Wazirx Mirchi Idea (To the moon) An informative approach infused with a dose of crypto-lingo: WazirX takes your crypto- investments To The Moon!. A multi-media campaign, composed of a radio arm that educated listeners and an influencer-led activity that generated brand engagement. 24
Slide 26: Wazirx (Video)
Wazirx (Video) 25
Slide 27: Solutions: Client testimonials
Solutions Client testimonials 26
Slide 28: Smule – Multi year and Multi property association
Smule – Multi year and Multi property association Client Speak 27
Slide 29: 100 Pipers – Play for a cause
100 Pipers – Play for a cause – “We create Records” Client Speaks The record is featured in the 2020–22 edition of Limca Book of Records 28
Slide 30: Gulf Oil – Our work is featured and wins awards
Gulf Oil - Our Work is featured in various forums and win awards • Infotaintment based content to create awareness of Client the pandemic Speaks • To promote the helpline number that Gulf has created • To provide information on how to stay safe in their work environment Mirchi bags three awards at t
Slide 31: Mother Dairy – We deliver highly engaging content solutions
Mother Dairy – We deliver high engaging content solutions Client Speaks 30
Slide 32: Three: Digital
Three: Digital Digital Mirchi > Radio Mirchi 31
Slide 33: A strong bouquet of digital content
A strong bouquet of digital content…. • Online radios • Original podcasts Digital • Original videos/YouTube • Digital solutions • Social media/influencers • All our digital products are built on a) strong brand b) content capabilities c) creative team strength 32
Slide 34: Digital has grown despite the pandemic
Digital has grown despite the pandemic…. Rs. In lacs H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22 Online radios 16.7 7.4 1.6 2.1 3.5 Original Podcasts - - 9.4 - - You Tube & Orig videos 44.3 480.5 138.8 247.0 211.1 Digital solutions & SM 784.7 1,025.2 907.5 1,843.2 900.3 Total 845.7 1,513.1 1,057.3 2,092
Slide 35: Digital to contribute most to revenue growth from FY24
Digital to contribute most to revenue growth from FY24…. • Mirchi platform and Mirchi’s digital content will both drive revenue growth. • Mirchi platform – we are aiming to get 40-50 million MAUs by FY24 • In content, both solutions and SM will continue to grow. Original Podcasts represents a great
Slide 36: Digital – Online Radios
Digital – Online Radios 18 web radios 4 million MAU 521 mn streams Low on revenues….but huge potential ahead 35
Slide 37: Podcasts coming soon on Mirchi platform
Podcasts coming soon on Mirchi platform • Platform launch by 1st April 2022 • 125/80/60 million podcast MAU in the US/China/India. • 200 million expected in India by 2024. • $1.3 billion revenues in the US; $200 million in China. Negligible in India. Revenues growing 30%+ CAGR • Advertising, subscri
Slide 38: Podcast – valuation indicators
Podcast – valuation indicators • Pocket FM - >$325 million in December 2021 • Pratilipi - $265 million in July 2021 • Kuku FM - $15.5 million in early 2020 • Awaaz – Approx $20 million recently Podcasts – attracting huge investor interest 37
Slide 39: YouTube – Mirchi, a strong MCN
YouTube (YT) – Mirchi, a strong MCN…. 13 channels 13 mn subs 68 mn views/ Month Theme and Language based You Tube channels key to hosting Original Content 38
Slide 40: Filmy Mirchi the top Bollywood channel
Filmy Mirchi the top Bollywood channel CHANNEL YT SUBS 1. Filmy Mirchi : 6.2 Mn 2. Viral Bollywood: 4.9 Mn 3. Zoom : 4.7 Mn 4. Bollywood Now: 4.6 Mn 5. The Quint 3.2 Mn 6. Bollywood Hungama: 2.6 Mn 7. Pink Villa: 2.1 Mn 8. Film Companion: 1.3 Mn 9. Miss Malini: 0.7 Mn 39
Slide 41: Top independent YT entertainment channels
Top independent YT entertainment channels Channel Subscribers TVF 10.4 million FilterCopy 9.1 million Timeliners 6.7 million Filmi Mirchi 6.2 million Screen Patti 5.4 million Dice Media 4.8 million Girlyapa 4.5 million Zoom 4.4 million Red FM 4.3 million MTV India 4.3 million Mirchi Murga 3.2 millio
Slide 42: Original video content
Original video content Content across Licensing Languages Celebrity Brand Shows integration Original content 41
Slide 43: Multi-lingual Original Shows
Multi-lingual Original Shows Punjabi Punjabi Marathi Marathi Gujarati 42
Slide 44: Multi-lingual Original Shows
Multi-lingual Original Shows Punjabi Tamil 43
Slide 45: Multi-Platform Celebrity Shows
Multi-Platform Celebrity Shows What Women Want - Season 3 15mn YouTube views; 4mn+ Social Media Views 44
Slide 46: Multi-Platform Celebrity Shows
Multi-Platform Celebrity Shows 45
Slide 47: Digital solutions
Digital solutions Media dark mkts Mobile tech Social Media RJs as influencers Client solutions Unique expertise in technology + content 46
Slide 48: Mirchi's Social Media Strength
Mirchi’s Social Media Strength Our talent (RJs) continue to gain strength Growth due to a lot of RJ videos being shared on the platform 47
Slide 49: Star Jocks on Web Radio
Star Jocks on Web Radio Total SM Total SM Followers: Followers: 560K+ 315K+ Rochie Shruti Total SM Total SM Followers: Followers: Sana 350K+ 2M+ Sayema 48
Slide 50: Mirchi digital reach and social media metrics
Mirchi Murga 3.2Mn+ YT subs 2.2Mn followers on Twitter 1212+ videos 4L Monthly engagement 14Mn views/ Month 86 RJ as SM influencers 13.0 Mn+ subscribers to Mirchi 25Mn fans on facebook Channels 3.7Mn Monthly engagement 13 Channels 137 RJs as SM Influencers 68Mn Views/ Month Mirchi Digital 10 Regiona
Slide 51: Four: International
Four: International Growing rapidly 50
Slide 52: North America, GCC big for Mirchi
North America, GCC big for Mirchi…. Country City Launch Date New Jersey January 2019 USA San Francisco July 2021 Current Qatar Doha March 2021 Business Operations UAE Abu Dhabi March 2021 Bahrain Bahrain May 2021 Future USA – Dallas, Canada, Australia, NZ and UK Expansion 51
Slide 53: Five: Mirchi platform
Five: Mirchi platform Coming soon! 52
Slide 54: Mirchi.in
Mirchi.in Launching own web and app platforms soon: • Audio, video, text stories, all in the area of entertainment, executed in typical Mirchi style! • Streaming FM stations in international markets. Limited music products within India. • Content produced by inhouse talent, and external professional
Slide 55: Why Mirchi.in?
Why Mirchi.in? • So far, we have been a digital content company, putting our content on external platforms • Examples: our videos on YT. Our radios on Gaana. Our original shows on MX Player etc. • Disadvantages: – No user data. Hence cannot cross-sell new products. Nor can we tweak our products to e
Slide 56: Six: Digital commerce
Six: Digital commerce Details later 55
Slide 57: Seven: Investment in digital start-ups in adjunct areas
Seven: investment in digital start-ups in “adjunct” areas Details later 56
Slide 58: The new Mirchi
The new Mirchi…. Digital Platform Digital Digital Commerce content Radio Solutions Digital start-ups Inter- national Today, Digital is 11-12% of our revenues; Target 25% by FY25 57
Slide 59: Brand Mirchi is our biggest strength
Brand Mirchi is our biggest strength…. 300+ Creative. 63 cities – 15 350+ sales languages. people Music/ No other player 10K+ Film in the clients fraternity market has Brand such Mirchi capabilities Financial inhouse 63 cities muscle #1 in radio for 20 years 58
Slide 60: What differentiates us is Solutions
What differentiates us is Solutions…. Solutions allows us Radio to monetize products Digital and ideas that may partners Online not sell by themselves, (Gaana, radios Google) example podcasts and SOLU online radios. TIONS We leverage our 10K+ Original Live, Podcasts Catalyst client relationships. Or
Slide 61: Thanks
Thanks Swan Hm
Entertainment Network (India) — Investor Presentation (December 2021) on 6ix