Entertainment Network (India) Limited · NSE:ENIL
Entertainment Network (India) — PL Corporate Month (May 2008)
33 slides from Entertainment Network (India)'s conference presentation, May 26, 2008
Slide 1: PL Corporate Month
PL Corporate Month May 26, 2008 1
Slide 2: Disclaimer
Disclaimer Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties rela
Slide 3: Presentation Path
Presentation Path • Times Group • Indian Media Industry • ENIL Overview • Financial Highlights • Strategic Direction 3
Slide 4: Times Group
Times Group ENTERTAINMENT NETWORK (INDIA) LTD. expemtence
Slide 5: We are part of Times Group – India's Largest Media Conglomerate
We are part of Times Group – India’s Largest Media Conglomerate Bennett Coleman & Co Ltd Publishing Division Times Internet Times Global Limited Broadcasting (JV with Reuters) The Times of India The Economic Times Navbharat Times Times Maharashtra Times Infotainment News Channel – Sandhya Times Medi
Slide 6: Indian Media Industry
Indian Media Industry ENTERTAINMENT NETWORK (INDIA) LTD. expemtence
Slide 7: Ad Market – A Play on Economy
Ad Market – A Play on Economy 23.4% 25.0% 20.0% 20.0% 14.1% 12.8%13.7% 12.9% 15.0% 11.8% 13.5% 8.7% 8.1% 9.6% 10.0% 7.5% 5.0% 0.0% 2002 2003 2004 2005 2006 2007 GDP Growth Ad revenue Growth • Nominal GDP expected to grow at a CAGR of 11% - 13% p.a. over the next ten years • Ad Market estimated to gr
Slide 8: Indian Media Sector on the fast lane
Indian Media Sector on the fast lane 2002 2003 2004 2005 2006 2007E India 0.36 0.40 0.45 0.46 0.51 0.51 Asia-Pacific 0.80 0.81 0.81 0.81 0.80 0.79 Latin America 0.74 0.74 0.73 0.74 0.70 0.72 Western Europe 0.76 0.74 0.75 0.75 0.75 0.75 North America 1.37 1.34 1.33 1.29 1.28 1.25 World Average 0.97 0
Slide 9: Ad Revenue Landscape
Ad Revenue Landscape 2007 Out-of-home Online Radio 6.4% 1.4% 3.2% Television 41.2% Print 47.9% Source: FICCI-PWC Media report 2008 • New Media Categories are evolving 9
Slide 10: Ad Revenue Growth Across Media
Ad Revenue Growth Across Media Amount in Rs. Billion 225.0 35% 200.0 200.0 32.0% 180.0 28% 24.0% 135.0 21% 20.0% 94.0 16.0% 90.0 80.0 14.0% 14% 45.0 24.0 7% 12.5 18.0 6.2 11.0 2.7 - 0% Print Television Out-of-home Radio Online 2007 2012F 2008-12 CAGR Source: FICCI-PWC Media report 2008 • Radio marke
Slide 11: India Media Industry - Growth Drivers
India Media Industry - Growth Drivers GDP Growth rate of 8.7%, Ad spend growth – 20% Young nation with Higher spending Media & Low Media power Entertainment Penetration – Industry Untapped rural Largest workforce in markets the world Regulatory reforms (PPP) & Foreign Investment 11
Slide 12: ENIL Overview
ENIL Overview Our Vision is to be “A Leading City-centric Media Company By Delivering Unique Audiences Through Media Vehicles Like FM Radio, Experiential Marketing And Out-of-home Media” 12
Slide 13: Company Snapshot
Company Snapshot Headquarters: Mumbai, India Incorporated: 1999 Listed: February 15, 2006 Subsidiaries: Times Innovative Media Limited (TIM) Alternate Brand Solutions Limited (ABSL) Businesses: – ENIL Radio Broadcasting brand Radio Mirchi – TIM Out-of-home Media brand Times OOH – ABSL Experiential M
Slide 14: Poised For Growth
Poised For Growth • Completed rollout of phase II radio stations – Operational in thirty two cities – First Company to complete national network rollout in phase II – 22 new stations already profitable in Q4 FY08 • Favorable Supreme Court Order on Music License • Times OOH valued at over Rs. 12 bn –
Slide 15: FM Radio - Evolution
FM Radio - Evolution 2006- 07 • Multiple Frequency • License Tradability • Networking 1999-2005 • Radio ad spend share • Completion of Phase – - 8.5% II Licensing • Technology Before 1999 • Increased Competition developments • Phase – I Licensing • Improving profitability • Visual Radio • Limited Pr
Slide 16: FM Radio – TRAI Recommendations on Phase 3
FM Radio – TRAI Recommendations on Phase 3 • Need for Augmentation of Private FM Broadcasting – The geographical basis for bidding may be changed from City to District • Additional channels in the same city to existing players – At least three players excluding AIR in any district – Maximum number o
Slide 17: Mirchi – Presence across Key Indian Cities
Mirchi – Presence across Key Indian Cities Ahmedabad Jallandhar Pune Aurangabad Kanpur Panjim Bangalore Kolhapur Raipur Bhopal Kolkata Rajkot Chennai Lucknow Surat Coimbatore Madurai Vadodara Delhi Mangalore Varanasi Hyderabad Mumbai Vijayawada Indore Nashik Vishakhapatnam Thiruvananthapuram Jabalpu
Slide 18: Radio Mirchi – Operational Highlights
Radio Mirchi – Operational Highlights • Mirchi market share remains strong at 46-48% of private FM market • Listenership continues to remain strong – As per RAM, Radio Mirchi is the top brand in the 3 markets of Delhi, Mumbai and Bangalore • At the recently announced RAPA awards, Mirchi received hig
Slide 19: Times Innovative Media Ltd. (Times OOH)
Times Innovative Media Ltd. (Times OOH) Execution Times Innovative Media Ltd. Innovation Network 19
Slide 20: Milestones
Milestones • Introduced LEDs in India 2008 • Won Patel Bridge, Dwarka Metro, DND Flyover & 2007 Kolkata Billboards 2006 • Investment by Goldman TIM is incorporated and Sachs and Lehman business is transferred • Won Delhi and Mumbai Brothers from TIML • Won contract in four Aiports • Won Pune Billboa
Slide 21: Asset Snapshot
Asset Snapshot Asset Particulars MIAL 300 + Units (Excl. Trolleys) +2 LEDs DIAL 150+ Units (Excl. Trolleys) DMRC - Dwaraka 6 Metro Stations – Sector 9-14 Chandigarh Mumbai BQS 1350 Units New Delhi Hyderabad BQS 200 Units Jaipur Bangalore BQS 281 Units New Delhi (BRT) 60 BQS Chandigarh BQS 8 units Mu
Slide 22: Alternate Brand Solutions Ltd.
Alternate Brand Solutions Ltd. “Business of Ideas” Creative Solutions Property Ownership Driving Sustainability “Preferred Corporate Partner” Innovation in execution 22
Slide 23: 360°Experience: Eventful Consumer Engagements
360°Experience: Eventful Consumer Engagements • Focus on owned properties – Teen Tiva Beauty Pageant – Smart Living Awards – Mr. India World pageant • Managing large format events – Filmfare Awards – Miss India Pageant – IFFI Goa’07 – Pravasi Bharatiya Diwas’06 • Key strengths – National presence (8
Slide 24: Financial Highlights
Financial Highlights ENTERTAINMENT NETWORK (INDIA) LTD. 24 TIMES OCH’ Cemuee, QD mescc expemtence
Slide 25: Condensed Statement Of Operations
Condensed Statement Of Operations Standalone Q4 FY08 Q4 FY07 YoY (Rs. Million) Growth (%) Airtime Sales 631.7 452.4 39.6% Other Income 37.2 1.3 NM Total Income 668.9 453.7 47.4% Operating Expenditure 445.4 320.6 38.9% EBITDA 223.6 133.1 68.1% Margin (%) 33.4% 29.3% Depreciation 49.7 16.3 204.5% Amor
Slide 26: Condensed Statement Of Operations
Condensed Statement Of Operations Standalone FY08 FY07 YoY (Rs. Million) Growth (%) Airtime Sales 2,252.2 1,672.0 34.7% Other Income 41.7 8.0 421.1% Total Income 2,293.9 1,680.1 36.5% Operating Expenditure 1,729.2 1,223.9 41.3% EBITDA 564.7 456.2 23.8% Margin (%) 24.6% 27.1% Depreciation 140.6 54.6
Slide 27: FY08 Performance Review
FY08 Performance Review (All comparisons with FY07) • On a like-to-like basis (10 legacy stations): - Revenues up 10.6% to Rs. 1,849.6 million - EBITDA up 27.8% to Rs 583.1 million - EBITDA margin stood at 31.5% vis-à-vis 27.1% last year • Reported net profit lower due to launch of 22 new stations;
Slide 28: Condensed Statement Of Operations
Condensed Statement Of Operations Consolidated FY08 FY07 YoY (Rs. Million) Growth (%) Income from operations 4,134.7 2,351.1 34.7% Other Income 33.7 13.6 148.1% Total Income 4,168.4 2,364.7 76.3% Operating Expenditure 3,813.5 1,916.3 99.0% EBITDA 354.9 448.4 (20.8%) Margin 8.5% 19.0% Depreciation 18
Slide 29: FY08 Performance Overview
FY08 Performance Overview Consolidated • Times OOH reported Revenues and EBITDA of Rs. 1336.9 million and Rs.(219.1) million respectively • 360 Degrees reported Revenues and EBITDA of Rs. 601.0 million and Rs.(0.2) million respectively • Times OOH revenues grew by 320.1% - Growth of 76.7% on like ba
Slide 30: Strategic Direction
Strategic Direction ENTERTAINMENT NETWORK (INDIA) LTD. 30 TIMES OOH’ ut, co) snameseahin expemtence
Slide 31: Strategic Direction
Strategic Direction Expand our footprint in radio broadcasting - Prepare for opportunities arising from certain recent regulatory developments - Expansion in international markets Maintain market leadership in fast growing radio industry Focus on Out-of-Home media growth - Expand the network of out-
Slide 32: Strategic Direction (Cont'd)
Strategic Direction (Cont’d) Establish long-term client relationships for Experiential Marketing - Establish ourselves as a provider of innovative solutions – “Wellness strategy”. - Focus on “owned” rather than “managed” events. - Focus on Life style, Fashion shows 32
Slide 33: THANK YOU
THANK YOU 33
Entertainment Network (India) — PL Corporate Month (May 2008) on 6ix