Siti Networks Limited · NSE:SITINET
Siti Networks — Q4 FY2018 Earnings Presentation
22 slides from Siti Networks's earnings presentation, May 2018
Slide 1: SITI Networks Limited Q4FY18 Investor Presentation
SITI Networks Limited Q4FY18 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 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: Full Year Consolidated Revenues at Rs 1426.4 Cr and EBITDA at Rs 324.5 Cr
Full Year Consolidated Revenues at Rs 1426.4 Cr and EBITDA at Rs 324.5 Cr SITI crosses 11.5 Mn active digital subscriber base EBITDA jumps 2.6x from Rs 58.6 Cr to Rs 151 Cr; EBITDA Margins leap 2.1x from 5.7% to 12% Subscription Revenue up 41% to Rs 800 Cr Collection efficiency surpasses 95% 3
Slide 4: Company Overview
Company Overview GROUP
Slide 5: SITI Networks: India's Leading Multi-System Operator
SITI Networks: India’s Leading Multi-System Operator 11.5 Mn 315, 000 ~580 1.68 Mn 250,000 Active Digital Subscribers HD Subscribers locations Presence Broadband Homes Passed Broadband Subscribers Multi-System Operator (MSO) providing Digital Cable TV and Broadband Services All metrics as of 31st Ma
Slide 6: SITI Networks: Present 580+ locations across India
SITI Networks: Present 580+ locations across India 6
Slide 7: On a progressive growth path
On a progressive growth path 1994 ▪ 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 8: Promoter Group - Corporate Structure
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 programmin
Slide 9: The SITI Competitive Advantage
The SITI Competitive Advantage 1 2 3 4 5 Country-wide Superior Systems & Strategic Efficient Access Technology Processes Alliances Execution • India’s largest MSO • Using latest MPEG4 • OYC Subscriber • Provisioning of Zee5 • Robust corporate STBs Management app to SITI’s Video governance & • Presen
Slide 10: SITI Networks has a sizeable free float & institutional ownership
SITI Networks has a sizeable free float & institutional ownership Shareholding Pattern Key Investors 872 Mn Shares 1.1% 12.3% Foreign Institutions 3.9% Acacia Partners 4.3% 4.9% 73.4% Domestic Institutions Promoters Individuals Indian Companies Mutual Funds FIIs Others As of 11th May 2018 There has
Slide 11: Video and Broadband Technology Infrastructure
Video and Broadband Technology Infrastructure • 15 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; 354 IP Points • Hybrid (DOCSIS+ GPON) Technology to offer Cable Broadband services 11
Slide 12: Strategy
Strategy GROUP
Slide 13: Video Strategy
Video Strategy • Increase Collection efficiency by further implementing Migrate to Prepaid Prepaid model • ARPU enhancement across phases Revenue Enhancement • Increase HD Subscriber base Cost • Working with leading consultancy firm Optimization • Background work to gear up for for outsourcing IT &
Slide 14: SITI well positioned to benefit from implementation of Tariff Order
SITI well positioned to benefit from implementation of 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 Content Subscripti
Slide 15: Financials & Operating Metrics
Financials & Operating Metrics 15
Slide 16: Exceeded Expectation on FY18 Key Metrices
Exceeded Expectation on FY18 Key Metrices Key Performance Indicators Vs FY17 Subscription revenue for FY18 at Rs 41% increase in FY18 7,997mn (7,997mn vs 5,690mn) Operational expenses for FY18 at Rs 13% increase in FY18 11,019mn (11,019mn vs 9754mn) Operating EBITDA Margin improved FY18 margin Up by
Slide 17: FY18 Trends: Robust Performance
FY18 Trends: Robust Performance • Full Year Consolidated Revenues at Rs. 14,264 Mn and EBITDA at Rs. 3,245 Mn • EBITDA Margins leap 2.1x from 5.7% to 12% 17
Slide 18: Video: Consistent improvement
Video: Consistent improvement • Overall collection efficiency surpassing 95% in Q4FY18 • Subscription Revenue took a significant leap of 41% in FY18 to Rs 800 Cr 18
Slide 19: Broadband: Steady Growth
Broadband: Steady Growth • 16.8 lakh Home Passes • % Base on lock-in plans increased to 37% from 5.6% • Blended Q4FY18 ARPU @ Rs.462 19
Slide 20: Improving Operational Performance sequentially (Consolidated)
Improving Operational Performance sequentially (Consolidated) • Operating EBITDA Margins significantly expanded by 900 bps YoY to 16.2% in Q4FY18 • Operating EBITDA improved significantly by 145% YoY to Rs 51.5 Cr Key Initiatives Harnessing Improving IP location wise Inventory Control operational Le
Slide 21: Conference Call
Conference Call On the 17th May 2018 for the Q4FY18 Results Date: 17th May 2018 SITI Networks Limited Time: 06:00 PM (India Time); 08:30 PM (HK/SG Time) Call Leader: Ankit Saint On 17th May 2018, SITI Networks Limited (BSE: 532795, NSE: SITINET EQ) is due to announce its audited Financial Results fo
Slide 22: Ankit Saint, Investor Relations
Ankit Saint Investor Relations, SITI Networks Limited +91-120-452-6754 Ankit.Saint@siti.esselgroup.com 22