Den Networks Limited · NSE:DEN

Den Networks — Q2 FY2019 Earnings Presentation

23 slides from Den Networks's earnings presentation, Nov 14, 2018

  1. Slide 1: Cover letter to stock exchanges

    Date: - November 14, 2018 The Corporate Relationship Department The Corporate Relationship Department The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/ 1, G-Block, 15‘h Floor, Phiroze JeeJeebhoy Towers Bandra Kurla Complex Dalal Street, Mumbai—400 001 Bandra (E), S

  2. Slide 2: Investor Update Q2 FY 18-19

    Investor Update Q2 FY 18-19 14th November 2018 Den Networks Ltd. Comparable financial figures are for continued businesses only Slide 1 – Investor Update Q2 FY 18-19

  3. Slide 3: Disclaimer

    Disclaimer The information in the presentation may contain “forward-looking statements” which are statements that refer to expectations and plans for the future and include, without limitation, statements regarding Den’s future results of operations, financial condition or business prospects as well

  4. Slide 4: Contents

    Contents 1. Cable TV 2. Fixed Line Broadband 3. DEN – Financial Snapshot for Q2 FY 18-19 4. Tariff order highlights Slide 3 – Investor Update Q2 FY 18-19

  5. Slide 5: TV Viewership continues to grow

    TV Viewership continues to grow SOURCE 'BARC’S BROADCAST INDIA 2018 SURVEY' Slide 4 – Investor Update Q2 FY 18-19

  6. Slide 6: Cable Monetisation has just started

    Cable Monetisation has just started  Cable Monetisation has just started – 2 years phenomenon post digitisation  ARPU’s continues to grow year on year across phases – Phase 3 realisations are moving towards Phase 2 ARPU’s , Phase 2 realisations inching up to align with Phase 1 while Phase 1 ARPU’s

  7. Slide 7: High Definition Boxes – Additional opportunity for monetisation

    High Definition Boxes – Additional opportunity for monetisation 172.9 Pay-TV Subs 155.0 HD Subs 129.4 Subcribers (Mn) HD HD 10.9% HD 19.0 6.8% 1.2% 10.6 1.5 Source: MPA 2012 2017 2022  HD Subscribers are expected to reach ~11% of the total Pay-TV subscribers by Year 2022.  Potential to generate ad

  8. Slide 8: TRAI Tariff Order – Finally a reality

    TRAI Tariff Order – Finally a reality  Apex court has dismissed the appeal filed by one of the major broadcasters, paving the way for the implementation of the TRAI tariff order.  Broadcaster to fix MRP - Content to become a pass through  Customer also gets the much needed flexibility – pay per c

  9. Slide 9: DEN – New initiatives undertaken to suit customer preferences

    DEN – New initiatives undertaken to suit customer preferences •Improved compression •Pan India Reach •Increase capacity • Normal HD + Smart HD with Wi Fi •VAS – Music, Radio, Games Dongle OTT - TV on Mobile handsets. Enabling 2nd screen using cable TV signal DEN Awarded the title of “The Best MSO” a

  10. Slide 10: Contents

    Contents 1. Cable TV 2. Fixed Line Broadband 3. DEN – Financial Snapshot for Q1 FY 18-19 4. Tariff order highlights Slide 9 – Investor Update Q2 FY 18-19

  11. Slide 11: India Fixed Line Broadband (FLBB) – Opportunity

    India Fixed Line Broadband (FLBB) – Opportunity Only 18 Mn Indian households have FLBB connection, against this CATV already has  15X rise y-o-y in internet 103.5 Mn HH’s connected via existing cable/fibre data traffic in Year 2017 - video content contributed ~65% of Wireless Internet total mobile

  12. Slide 12: DEN – Fixed Line Broadband 100 Cities Plan

    DEN – Fixed Line Broadband (FLBB) 100 Cities Plan Asset lite model with India FLBB Opportunity synergies from existing set-up = improved returns DEN LMO  Existing own cable universe and tie-  Target existing cable subscriber ups with LMO’s base Scalable to 100 cities in  Franchisee model leveragi

  13. Slide 13: Broadband – 100 Cities Update

    Broadband – 100 Cities Update 12 # of Cities Enabled 46 Cities # of Subscribers 12,584 Monthly ARPU INR 580 Speed Offered 10 - 100 Mbps Average Data 90 GB Consumption Slide 12 – Investor Update Q2 FY 18-19

  14. Slide 14: Contents

    Contents 1. Cable TV 2. Fixed Line Broadband 3. DEN – Financial Snapshot for Q2 FY 18-19 4. Tariff order highlights Slide 13 – Investor Update Q2 FY 18-19

  15. Slide 15: Consolidated (Cable & BB) P&L: Quarterly Summary

    Consolidated (Cable & BB) P&L : Quarterly Summary INR Crore Cable Broadband Consolidated Gr% Subscription Revenue 2Q'19 172 16 188 1Q'19 170 16 186 1% 2Q'18 164 19 183 3% Revenues 2Q'19 293 17 310 1Q'19 299 16 314 -1% 2Q'18 308 20 328 -6% EBITDA 2Q'19 50 0 50 1Q'19 48 (1) 47 8% 2Q'18 83 (1) 82 -39%

  16. Slide 16: Cable KPIs: Quarterly

    Cable KPIs: Quarterly -4% -1% +9% +3% Billed 7.4 7.4 7.4 7.2 7.1 ARPU Rs. 81 Subscribers * (mn) 79 79 (*excludes Associates 78 ~ 1mn) 74 Q2, FY18 Q3, FY18 Q4, FY18 Q1, FY19 Q2, FY19 Q2, FY18 Q3, FY18 Q4, FY18 Q1, FY19 Q2, FY19 +5% +1% Efficiency% Subs. Rev 174 175 172 94% 164 170 93% 93% 91% 86% Rs

  17. Slide 17: Cable ARPU Phase wise (Net of tax- Ind. AS)

    Cable ARPU Phase wise (Net of tax- Ind. AS) ARPU (INR) Blended 79 79 81 75 Phase 4 56 54 53 47 Phase 3 66 67 73 63 Phase 2 96 93 90 92 Phase 1 122 122 124 116 FY18 Q4 FY19 Q1 FY19 Q2 FY18 Slide 16 – Investor Update Q2 FY 18-19

  18. Slide 18: Cable Income Statement

    Cable Income Statement INR Crore Actuals Actuals Growth % 2Q'19 1Q'19 2Q'18 FY19 H1 FY18 H1 Q-o-Q (Gr%) Y-o-Y (Var%) YTD (Gr%) Subscription 172 170 164 342 318 1% 4% 7% Placement 81 85 88 166 177 -4% -7% -6% Activation 25 24 36 49 58 3% -31% -16% Other Operating Income 16 20 20 35 46 -20% -23% -24%

  19. Slide 19: Broadband ARPU & Subscribers development

    Broadband ARPU (net of tax) & Subscribers development ARPU -17% 0% Homes passed +2% (INR) 664 (‘000) 944 899 913 927 579 565 879 552 554 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 +5% Subscribers 107 107 107 112 (000) 106 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 S

  20. Slide 20: Broadband Income statement

    Broadband Income statement INR Crores Actuals Growth % 2Q'19 1Q'19 2Q'18 FY19 H1 FY18 H1 Q-o-Q (Gr%) Y-o-Y (Var%) YTD (Gr%) Total income 17 16 20 32 41 6% -17% -22% Personnel Costs 2 3 3 5 7 -27% -39% -25% Other Opex 14 13 17 28 35 5% -19% -20% Total Expenditure 16 17 21 33 41 -2% -22% -21% EBITDA 0

  21. Slide 21: Consolidated Income Statement

    Consolidated Income Statement Actuals- Quarterly Actuals- YTD Growth % 2Q'19 1Q'19 2Q'18 FY19 H1 FY18 H1 Q-o-Q (Gr%) Y-o-Y (Var%) YTD (Gr%) Subscription- Cable 172 170 164 342 318 1% 4% 7% Subscription - Broadband 16 16 19 32 40 5% -14% -20% Placement 81 85 88 166 177 -4% -7% -6% Other Operating Inc

  22. Slide 22: Consol. Balance sheet

    Consol. Balance sheet INR Crore Sep'18 Mar'18 Share Capital 195 195 Reserves & Surplus 532 589 Networth 727 784 Minority Interest 101 104 Sep'18 Mar'18 Short & Long Term Debt 519 541 Gearing Ratio (Net) 0.18 0.17 Defferred Revenue 433 472 Trade Payables 485 345 Other Liabilities 79 109 Gross Debt (R

  23. Slide 23: Contact Information

    Contact Information DEN - “India’s Most Attractive Cable TV Brand – 2017” Trust Research Advisory (TRA) Jatin Mahajan Shogun Jain / Payal Dave InvestorRelations@DenOnline.in shogun.jain@sgapl.net / payal.dave@sgapl.net +91 11 4052 2200 +91 77 3837 7756 / +91 98 1991 6314 DEN Networks Ltd. Strategic

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