Siti Networks Limited · NSE:SITINET
Siti Networks — Q4 FY2019 Earnings Presentation
24 slides from Siti Networks's earnings presentation, May 2019
Slide 1: SITI Networks Limited Q4FY19 Investor Presentation
SITI Networks Limited Q4FY19 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: SITI Networks Declares Robust FY19 Results
SITI Networks Declares Robust FY19 Results 3
Slide 4: Operating EBITDA leaps 2x y-o-y to Rs.3001 Mn
• Operating EBITDA leaps 2x y-o-y to Rs.3001 Mn1 • Operating EBITDA Margins jumps 1.76x y-o-y to 21.2% • Subscription Revenue surges 19% y-o-y to Rs.9537 Mn • Total Revenue2 rises 13% y-o-y to Rs.14,186 Mn1 • Subscriber ARPU leaps 31.4% • Subscription Collection Efficiency @ 95% for Q4 FY19 1. Inclu
Slide 5: Industry Overview
Industry Overview sit! NETWORKS
Slide 6: India C&S Market Overview
India C &S 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
Slide 7: TV Homes Penetration
TV Homes Penetration Maximum Growth in East & South India | Small Towns & Rural are key drivers of Growth # Growth in TV Penetration # TV Owning HH (Millions) – Major Contributors 21% North East 24% Bihar / Jharkhand 12% Odisha 11% AP/Telangana 9% Karnataka Most Growth in TV Penetration in DAS Phase
Slide 8: 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 9: Company Overview
Company Overview sit! NETWORKS
Slide 10: 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 consumers 24/7 10
Slide 11: SITI Networks: India's Leading Digital TV Network
SITI Networks India’s Leading Digital TV Network 1st MSO launched in 1st MSO to give CRM 1st MSO listed on Stock 1st MSO to launch local Nation-wide India tool to Partners Exchange channels Distribution 24,000+ strong 01 Launched in 1994 02 OYC tool customer offered to LCOs 03 SITINET listed on NSE
Slide 12: 8.22 Mn Happy Households across the country
SITI Networks 8.22 Mn Happy Households across the country DAS Phase 1 1 1.27 Mn DAS Phase 2 2 1.06 Mn DAS Phase 3 3 2.38 Mn DAS Phase 4 4 3.51 Mn All metrics as of 31st Dec 2018| Does not include Analog
Slide 13: 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 14: Competitive Advantage
SITI Networks Competitive Advantage 01 02 03 04 05 India’s largest MSO Using latest MPEG4 OYC Subscriber In discussion with Robust corporate STBs Management System various service governance & Presence across 580 providers for creating compliance locations Broadband through Conax CAS value adds for
Slide 15: 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 16: Key Investors
SITI Networks Sizeable Free Float & Institutional Ownership 2.1% 3.9% Mutual Funds Others Key Investors 9.3% 65.7% Promoters Individuals 12% Foreign FII’s Institutions 7% Shareholding Pattern Indian Companies 872 Mn Shares Domestic Institutions There has been fund infusion of INR6800 Mn by Promoters
Slide 17: Technology Infrastructure
Technology Infrastructure Video & Broadband • 10 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 18: Strategy
Strategy GROUP
Slide 19: 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 20: Financials & Operating Metrics
Financials & Operating Metrics 20
Slide 21: Exceeded Expectation on FY19 Key Financial Metrics
Exceeded Expectation on FY19 Key Financial Metrices Vs FY18 Key Performance Indicators ~19% increase in FY19 Subscription revenue for FY19 at Rs (9,537mn vs 7,997mn) 9,537 mn Expenses Flat in FY19 Operational expenses for FY19 at Rs 11,185 (11,185 mn vs 11,019 mn) mn FY19 margin Up by 1.76x EBITDA M
Slide 22: Q4 FY19 Robust Performance
Q4 FY19 Robust Performance # 1.63x Jump in Operating EBITDA # 1.54x leap in Operating EBITDA Margins 3,001 25.0% 21.2% 16.2% 1,507 12.0% 840 515 FY18 FY19 FY18 FY19 Q4 12M Q4 12M # 13% YoY Jump in Total Revenue1 14,186 12,525 • Q4FY19 Consolidated Revenues at Rs. 3,367 Mn 3,170 3,367 • 12M Operating
Slide 23: Q4 FY19: Broadband Business
Q4 FY19 : Broadband Business Stable performance # ARPU has been relatively stable # Average Speed per Customer is steady 28 576 568 578 27 27 DOCSIS Q2FY19 Q3FY19 Q4FY19 Q2FY19 Q3FY19 Q4FY19 # Average Data Consumption has decreased 118 • Net Broadband base at 1.56 Lakhs 108 69 • Blended Broadband AR
Slide 24: Thank You
Thank You Investor Relations, SITI Networks Limited +91-120-452-6754 Ankit.Saint@siti.esselgroup.com