Hathway Cable & Datacom Ltd. · NSE:HATHWAY
Hathway Cable & Datacom — Investor Presentation (July 2017)
33 slides from Hathway Cable & Datacom's investor presentation, July 2017
Slide 1: Hathway Cable and Datacom Limited Investor Presentation – July 2017
Hathway Cable and Datacom Limited Investor Presentation – July 2017 1
Slide 2: Company Overview
Company Overview 2
Slide 3: Company Overview
Company Overview • Hathway Cable & Datacom Limited (Hathway) promoted by Raheja Group, is one Consolidated Revenue* (INR Mn) & of the largest Multi System Operator (MSO) & Cable Broadband service providers in EBITDA Margin (%) India today. 14,000 16.2% 20.0% 13,000 15.0% • The company’s vision is to
Slide 4: Hathway at a Glance
Hathway at a Glance Broadband 53.2% 25% 30.1% 14.6% 200 MBPS Upto 1 TB YoY Revenue 3 Year CAGR in 3 Year CAGR of 3 Year CAGR of Maximum speed Data offered growth ARPU Growth Broadband homes Broadband offered to its with average passed and presence subscribers customers consumption of INR 4,955 Mn IN
Slide 5: Leadership
Leadership Board members Experienced management team with strong track record Rajan Gupta – Managing Director – IIM Bangalore alumni with over 20 years of experience in blue Sridhar Gorthi chip companies. Worked with Asian Paints, Coca Cola and Tata Tele Services in leadership role. Chairman & Indep
Slide 6: Key Milestones
Key Milestones Promoter funding Acquired 2 lakh Providence Preferential allotment of Introduced and launch CATV Primary Acquired Equity INR 4.5 Bn to GPON FTTH high subscribers 50% stake in acquires Capital speed internet GTPL NewsCorp Research & service stake Tybourne Chrys Capital HD Preferential
Slide 7: Geographical Presence
Geographical Presence Strong market share in important regional cable markets in India Haryana Faridabad |Gurgaon | Panjpat Uttar Pradesh Delhi NCR Allahabad | Ghaziabad | Noida And 3 other cities Madhya Pradesh Bhopal City | Gwalior | Indore City Sikkim And 11 other cities Gangtok West Bengal Rajas
Slide 8: High Quality Infrastructure
High Quality Infrastructure Advanced technology and equipment provided by Leading Technology Vendors leading technology vendors STBs (SD & • Overground: 27,000 Kms HD) • Underground: 500 Kms Head-ends/ • Leased: 4,000 Kms Compression Optic Fibre Cable Network Modems • 6 Primary Headends and 7 Second
Slide 9: Awards and Accolades
Awards and Accolades Year 8 Times 2011 2013 2015 2015 2016 2016 2017 Star News Brand Economic Times Indian Telly Aavishkar Aavishkar LACP Aavishkar Organized by Excellence Euromoney Best Tech Brand Awards Media Group Media Group Vision Awards Media Group Awards Award Most Outstanding Contributing Be
Slide 10: Group Holding Structure
Group Holding Structure Broadband Business • Parent Company 100% FDI under Hathway Cable & automatic Datacom Limited CATV Business* • Hathway Digital Private Limited^ route in Cable (HCDL) and Broadcasting sector allowed with effect from December GTPL Hathway Limited# • Promoter company and owns 37.
Slide 11: GTPL Hathway Limited
GTPL Hathway Limited Advanced technology and equipment provided by leading Strong Market Share in regional cable markets in India technology vendors Key Highlights (as of 31st Jan, 2017) • Overground: 5,406 KMs #1 67% Present in 189 towns across 10 states • Underground: 600 KMs MSO in Gujarat Market
Slide 12: Broadband Business
Broadband Business 12
Slide 13: Broadband Business Overview
Broadband Business Overview • Hathway holds a Category-A pan India ISP license and was the first Consolidated Broadband Revenue (INR Mn) cable television services provider to offer broadband Internet 4,955 services. 3,234 • The company is India’s largest cable broadband services provider, with ~ 4.4
Slide 14: Broadband – Value Chain
Broadband – Value Chain Bandwidth Backbone Hathway NOC / Data Centre Content Peering / Caching Local Loops and Fibre Optic ring Routing and switching BSS and OSS Engine infrastructure from Tata, Bharti, engine for bandwidth and Billing / Customer provisional Vodafone and / or Hathway to connect to P
Slide 15: Broadband – Competitive Advantage
Broadband – Competitive Advantage Final Output Technology / Customer / Service Infrastructure Maximum speed is up to • DOCSIS 3.0 and 3.1 – pioneers in • R Madhavan as brand ambassador 200 mbps launching high-speed 50 MBPS • Partnering with various content broadband. providers, education portals and
Slide 16: Broadband Unit Economics
Broadband Unit Economics Revenue (INR) Cost (INR) Investment per Subscriber (INR) Particulars INR / Unit % Particulars INR / Unit % Particulars INR / Unit Consumer Price 885 118% Break-up of Cost Cost per Home Pass 600 GST 135 18% Bandwidth and 68 9% Penetration 20% leaseline cost NET REVENUE 750 10
Slide 17: Cable Television
Cable Television 17
Slide 18: Cable Television Business Overview
Cable Television Business Overview • Hathway offers its cable television services across 350+ cities and major Consolidated Total CATV Revenue (INR Mn) towns, operating in geographical regions which constitute important 8,489 markets for advertisers and broadcasters. 8,134 • Hathway is one of India’
Slide 19: Cable TV – Overview
Cable TV – Overview FY17 - CATV Subscribers (Mn) FY17 - CATV STBs (Mn) FY17 - CATV Exit ARPU (INR) Digitized Phase I 105 7.2 95 1.6 Phase III & IV 50 3.2 Non-Digitized Phase II FY17 0.3 2.4 Phase I Phase II Phase III Dominant Market Share in Key Geographies HD Subscribers (‘000) 65% 76% 85% 60% 43%
Slide 20: Cable TV – Value Chain
Cable TV – Value Chain Broadcast Processing & Transmission Consumption Consumption MSO – Major Digital Headend Satellite signal receiver + encoders Downlink SDI IRD Encoder SDI IRD Encoder IP IRD Encoder Primary Secondary Subscribers Subscribers Uplink from IRD IP Encoder Broadcasters CAS • NDS Mult
Slide 21: Cable TV – Competitive Advantage
Cable TV – Competitive Advantage Final Output Customer / Technology / Infrastructure Service Digital subscribers at • Hathway Connect enables LCOs to manage • Offering innovative packages as their network independently & transparently. per regions served. 7.2 Mn in 2017 • Subscribers can access thei
Slide 22: Cable TV Unit Economics
Cable TV Unit Economics Present Scenario Estimate Particulars Phase I & II Phase III & IV INR / Unit INR / Unit Consumer Price 295 200 GST * 45 30 NET REVENUE 250 170 MSO Economics Share to MSO 100 50 Cost (INR) Particulars INR / Unit INR / Unit Net Content Cost 48 28 Customer Service 5 5 Fixed Over
Slide 23: TRAI Tariff Impact Analysis
TRAI Tariff Impact Analysis Key Provisions Particulars Present New Tariff order • Distributors can charge a maximum INR 130 Content, Bundled Price for bouquet of Channels will be offered at a-la- (ex taxes) per sub per month as network Carriage & channels with discount up to 90% on carte priced (MRP
Slide 24: Strategic Overview
Strategic Overview 24
Slide 25: Growth Strategy
Growth Strategy Leverage Trendsetter in broadband and Pay Differentiated broadband industry TV presence to give Objective customer on speed, GBs, Price differentiated experience & Value For Money content, services and Build Value for all equation applications stakeholders in the Value chain Increase
Slide 26: Financials
Financials 26
Slide 27: FY17 Financial Highlights as per Ind-AS
FY17 Financial Highlights as per Ind-AS Income statement (INR Mn) FY17 FY16 Y-o-Y FY17 FY16 Y-o-Y Standalone Consolidated Total income 13,305 11,209 18.7% 13,682 11,550 18.4% Total expenditure 10,701 9,289 15.2% 11,472 10,159 12.9% EBITDA 2,604 1,920 35.6% 2,210 1,391 58.8% EBITDA margin % 19.6% 17.
Slide 28: FY17 Financial Highlights as per Ind-AS
FY17 Financial Highlights as per Ind-AS Statement of Assets and Liabilities (INR Mn) Standalone Consolidated FY17 FY16 FY17 FY16 A. Equity and Liabilities 1.Shareholder’s Funds a. Share Capital 1,661 1,661 1,661 1,661 b. Reserves and Surplus 8,114 9,652 7,293 9,227 Sub Total – Shareholder’s funds 9,
Slide 29: Historical Standalone Financial Charts
Historical Standalone Financial Charts Revenue & EBITDA Margin (INR Mn) 14,000 13,305 12,000 11,209 9,878 10,381 10,000 25.8% 8,000 6,679 18.7% 19.6% 6,000 17.1% 4,000 13.6% 2,000 - FY13 FY14 FY15 FY16 FY17 Revenue EBITDA Margin Net worth (INR Mn) 11,822 11,313 9,242 9,775 8,014 FY13 FY14 FY15 FY16
Slide 30: Capital Market Information
Capital Market Information Share Price Performance 60% HATHWAY SENSEX 40% 20% 0% -20% Price Data (30th June, 2017) INR Shareholding Pattern (30th June, 2017) Face Value 2.0 Promoter 43.5% Market Price 36.45 Public H/L (INR) 49.5/24.0 18.2% Market Cap (INR Mn) 30,271 Equity Shares Outstanding (Mn) 83
Slide 31: Disclaimer
Disclaimer Hathway Cable and Datacom Ltd Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation tha
Slide 32: Thank You
Thank You 32
Slide 33: Abbreviations
Abbreviations APRU Average revenue per user CAS Conditional access system DTH Direct-to-home DVR Digital video recorder DTT Digital terrestrial TV xDSL Digital subscriber lines FTA Free-to-air TV FTTx Fiber-to-the-x, which refers to broadband network architecture that used optical fiber to provide l
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