Siti Networks Limited · NSE:SITINET
Siti Networks — Q2 FY2019 Earnings Presentation
28 slides from Siti Networks's earnings presentation, Oct 31, 2018
Slide 1: Cover letter to stock exchanges
October 31, 2018 To, The General Manager The Manager Corporate Relationship Department Listing Department BSE Limited National Stock Exchange of India limited Phiroze Jeejeeboy Towers Plaza, 5th Floor, Plot no. C/1, G Block Dalal Street, Fort, Bandra Kurla Complex, Bandra (E) Mumbai- 400 001 Mumbai-
Slide 2: SITI Networks Limited Q2FY19 Investor Presentation
SITI Networks Limited Q2FY19 Investor Presentation Formerly known as SITI Cable Network Limited BSE : 532795 | NSE : SITINET | Bloomberg : SCNL:IN | Reuters : SITI.NS www.sitinetworks.com SITI Networks Limited – Confidential 1
Slide 3: 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 4: SITI Networks Declares Strong Q2FY19 Results
SITI Networks Declares Strong Q2FY19 Results 3
Slide 5: SITI Networks' Robust y-o-y Performance in Q2FY19
SITI Networks’ Robust y-o-y Performance in Q2FY19 • Operating EBITDA leaps 2.52x to Rs.682 Mn • Operating EBITDA Margins jumps 2.1x to 18.2% • Subscription Revenue surges 24% to Rs.2548 Mn • Total Revenue1 rises 20% to Rs.3748 Mn • Digital Subscriber ARPU leaps 19% • Subscription Collection efficien
Slide 6: SITI registers Strong Growth over Q1FY19
SITI registers Strong Growth over Q1FY19 • Operating EBITDA leaps 1.24x • Operating EBITDA Margins jumps 150 bps • Subscription Revenue surges ~19% • Total Revenue1 rises 14.2% 1. Excluding Activation 5
Slide 7: Industry Overview
Industry Overview siti NETWORKS
Slide 8: India Market Overview
India Market Overview TV Households are Growing Faster than the Universe 2016 2018 1% Terrestrial 10% Analog Cable 44% Digital Cable Total HH 286 Mn 297 Mn 13% Free Dish 197 Mn TV Households TV HH 183 Mn 197 Mn 31% Paid DTH Penetration of TV HH has gone up Cable (Digital + Analog) controls from 64%
Slide 9: TV Homes Penetration
TV Homes Penetration Max Growth in East & South India | Small Towns & Rural are key drivers of Growth # Growth in TV Penetration # TV Owning HH (Millions) – Major Contributors 21% 24% North East Bihar / Jharkhand 12% Odisha 11% AP/Telangana 9% Karnataka Most Growth in TV Penetration in DAS Phase 3 &
Slide 10: Company Overview
Company Overview siti NETWORKS
Slide 11: India's Leading Digital TV Network
• India’s Leading Digital TV Network • Present in 22+ States & UT across India • Footprint across 580+ locations • Delivering content to 55 Mn+ consumers 24/7 10
Slide 12: India's Leading Digital TV Network
SITI Networks India’s Leading Digital TV Network 11.75 Mn 580+ 3.9 Lakh 1.7 Mn Active Digital Locations High Definition Broadband Customers Footprint Customers Home Passes 55 Mn+ ~7% 1.63 Lakh Consumers TV Households Broadband Reached in India Customers 1st MSO launched in 1st MSO to give CRM 1st MS
Slide 13: 11.75 Mn Happy Households across the country
SITI Networks 11.75 Mn Happy Households across the country DAS Phase 1 1 1.7 Mn DAS Phase 2 2 1.5 Mn DAS Phase 3 3 3.9 Mn DAS Phase 4 4 4.7 Mn All metrics as of 30th Sep. 2018 | Does not include Analog
Slide 14: Present across 580+ locations
SITI Networks Present across 580+ locations Punjab Uttaranchal Haryana Uttar Pradesh Bihar Delhi Assam Nagaland Rajasthan Meghalaya Gujarat Jharkhand Madhya Pradesh West Bengal Maharashtra Odisha Chhattisgarh Karnataka Telangana Andhra Pradesh Kerala
Slide 15: On a Progressive Growth Path
SITI Networks On a Progressive Growth Path
Slide 16: Competitive Advantage
SITI Networks Competitive Advantage 01 02 03 04 05 India’s largest MSO Using latest MPEG4 OYC Subscriber Provisioning of Zee5 Robust corporate STBs Management System app to SITI’s Video governance & Presence across 580 subscribers compliance locations Broadband through Conax CAS Hybrid (DOCSIS 2/3 &
Slide 17: Promoter Group
Promoter Group Corporate Structure • Launched in 1926, the Parent Group (“Essel Group”) completed 90 years recently; One of India's leading business houses, with a dominant vertically integrated presence in Media and entertainment • Leading producer, aggregator and distributor of Indian programming
Slide 18: Sizeable Free Float & Institutional Ownership
SITI Networks Sizeable Free Float & Institutional Ownership 1.1% 3.9% Mutual Funds Others Key Investors 5.0% 72.2% Promoters Individuals 12.2% Foreign FII’s Institutions 5.6% Shareholding Pattern Indian Companies 872 Mn Shares Domestic Institutions There has been fund infusion of INR6800 Mn by Promo
Slide 19: Technology Infrastructure
Technology Infrastructure Video & Broadband • 12 Digital Headends; Intra-city OFC and Coax Network of ~33,000 Kms covering ~ 580 locations • Transport of Digital CATV signals on 1.2 Gbps links across the country; ~350 IP Points • Hybrid (DOCSIS+ GPON) Technology to offer Cable Broadband services Dig
Slide 20: Strategy
Strategy GROUP
Slide 21: SITI Networks Strategy
• Improve operational efficiencies and SITI Networks • harness inbuilt leverage Fungible teams for Cable and Video Strategy Broadband 03 • Improve extraction from low utilized IP based locations and 04 exiting non-profitable ones Cost • Increase Collection efficiency by further implementing Prepaid
Slide 22: Well Positioned to Benefit from Tariff Order
SITI Networks 06 01 Well Positioned to Benefit from Tariff Order Increase Consumer dependence ARPU’s to rise • Subscribers pay Phase neutral Minimum Rental of on systems / processes INR130 for 100 FTA SD channels; Can take additional FTA channels in bundles of 25 channels for INR20 each Subscription
Slide 23: Financials & Operating Metrics
Financials & Operating Metrics 22
Slide 24: The growth momentum continues in Q2FY19
The growth momentum continues in Q2FY19 Key Performance Indicators Vs Q2 FY18 Subscription revenue for Q2 FY19 at 24% increase in Q2 FY19 Rs 2,548 mn (2,548mn vs 2,054mn) Operational expenses for Q2 FY19 at Marginal increase in Q2 FY19 Rs 3,066 mn (3,066 mn vs 2,851 mn) EBITDA Margin (Excl. Activati
Slide 25: Q2 FY19 Robust Performance
Q2 FY19 Robust Performance # 2.52x Jump in Operating EBITDA # 2.1x leap in Operating EBITDA Margins 1,231 18.2% 17.5% 682 8.7% 8.2% 494 270 4.6% 4.6% 223 114 FY17 FY18 FY19 FY17 FY18 FY19 Q2 H1 Q2 H1 # 20% Jump in Total Revenue1 7,030 5,984 4,859 3,748 • Q2FY19 Consolidated Revenues at Rs. 3,122 2,4
Slide 26: Q2 FY19: Video Business
Q2 FY19 : Video Business Surging Ahead # 24% Growth in Video Subscription (INR Mn) # Customer Adds up by 60,000 4,697 3,756 11.10 11.69 11.75 2,615 2,548 2,054 1,352 FY17 FY18 FY19 Q2FY18 Q1FY19 Q2FY19 Q2 H1 # Phase-wise ARPU (Rs.) Increase ₹ 120 • ARPU increased strongly by 19% YoY ₹ 105 ₹ 85 ₹ 87
Slide 27: Q2 FY19: Broadband Business
Q2 FY19 : Broadband Business Stable performance # Maintaining ARPU despite Competition # Increase in Average Speed per Customer 613 606 27 27 576 17 Q2FY18 Q1FY19 Q2FY19 Q2FY18 Q1FY19 Q2FY19 # Increase in Average Data Consumption 118 • Net Broadband base at 1,62,500 97 102 • Blended Broadband ARPU w
Slide 28: Thank You
Thank You Ankit Saint Investor Relations, SITI Networks Limited +91-120-452-6754 Ankit.Saint@siti.esselgroup.com