Siti Networks Limited · NSE:SITINET

Siti Networks — SITI Cable Network — Q1 FY2016 Earnings Presentation

30 slides from Siti Networks's earnings presentation

  1. Slide 1: SITI Cable Network Limited Investor Presentation Q1FY16

    SITI Cable Network Limited BSE : 532795 | NSE : SITICABLE | Bloomberg : SCNL:IN | Reuters : SITI.NS www.siticable.com Investor Presentation Q1FY16 1 SITI Cable Network Ltd. Confidential

  2. 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 Cable Network Limited (SITI Cable) about its business and the indu

  3. Slide 3: Contents

    Contents Slno Section Pg no 1 Industry Overview 4 2 Broadband Overview 10 3 Company Overview 15 4 Annexure 26 3 SITI Cable Network Ltd. Confidential

  4. Slide 4: Industry Overview

    Industry Overview 4 SITI Cable Network Ltd. Confidential

  5. Slide 5: Indian TV industry-Expected CAGR Growth at 15.5%

    Indian TV industry-Expected CAGR Growth at 15.5% Industry size and projections , INR Bn Incremental Revenue addition CY19 vs CY14 397 341 290 186 204 Value, INR Bn Percentage 236 171 387 195 156 358 TV 501 53% 161 136 332 133 126 307 125 263 285 Print 123 13% 243 976 855 417 475 543 631 740 Films 78

  6. Slide 6: Subscription Revenue-Expected CAGR Growth at 16.1%

    Subscription Revenue-Expected CAGR Growth at 16.1% TV Industry size, INR Bn 299 Incremental Revenue addition CY19 vs CY14 260 226 Value, INR Bn Percentage 198 175 Subscription revenue 356 71% 155 136 676 513 595 Advertisement revenue 144 29% 433 281 320 369 Total 500 100% 2013 2014 2015P 2016P 2017P

  7. Slide 7: Distribution Platform: Digital Cable vs. Others

    Distribution Platform: Digital Cable vs. Others Digital Cable, owing to its two way communication capability, localized nature of service and immunity to weather conditions is well placed to serve Indian households Digital Analog Parameter DTH HITS IPTV Cable Cable Broadband 0 4 0 4 4 Cost of Infras

  8. Slide 8: Current Status of Digitization

    Current Status of Digitization Phase Area Total C&S Homes Implementation Status Base (~160 mn) Date Mumbai , Delhi , Kolkata – 31st Oct 2012 (Delhi Complete 4 metros – Mumbai, and Mumbai) Phase 1 ~15 Chennai - still underway, given Delhi, Kolkata, Chennai 15th Feb 2013 legal issues (Kolkata) 38 citi

  9. Slide 9: MSOs focusing on ARPU improvement & monetization to increase net realizations

    MSOs focusing on ARPU improvement & monetization to increase net realizations  ARPUs to be driven by packaging, package wise collections, improved monetization ARPU (INR per month) from LCOs, premium content, HD channels, Broadband and VAS  In Phase I cities, digital cable ARPUs at the subscribers

  10. Slide 10: Broadband Overview

    Broadband Overview 10 SITI Cable Network Ltd. Confidential

  11. Slide 11: Wired connections- Expected CAGR Growth at 11%

    Wired connections- Expected CAGR Growth at 11% Internet penetration (As a % of total population) Projected Connections Growth (Mn) India has ~24 Internet users per 100 people 32 30 100% 27 25 22 19 528 469 50% 90% 402 84% 84% 86% 83% 337 235 273 61% 52% 46% 24% 0% As on 30th 2015E 2016E 2017E 2018E

  12. Slide 12: Internet subscribers in JFM'15 increased 13.1% QoQ

    Internet subscribers in JFM’15 increased 13.1% QoQ India: 302 Mn Internet connections, 31st Mar. 2015 Wired Subs mix by Technology 5.0% 1.0% 6% 9.0% DSL Wired Dial Up Ethernet/ LAN Wireless 16.9% Cable Modem Others 68.1% 94% Source: TRAI ; Wireless includes Wi-Fi, Wi-Max,Radio, VSAT, Phone + Dongle

  13. Slide 13: India vs Asia Pac: Percolation of broadband encouraging

    India vs Asia Pac: Percolation of broadband encouraging Global rank in Q1'15 Q1'15 Global Rank in Broadband Broadband connections Country Avg. Peak Average Speed connections above 4 above 4 Mbps Mbps Mbps Mbps 1 South Korea 23.6 79.0 2 96.0% 3 Hong Kong 16.7 92.6 10 92.0% 6 Japan 15.2 70.1 14 89.0%

  14. Slide 14: Key Drivers for Cable Broadband in India

    Key Drivers for Cable Broadband in India Projected Exponential increase in Significant divergence in data rates 1 2 demand for Data Currently, 1 GB of data on a 3G Network costs In India, internet traffic is expected to grow 5.5- ~INR225 vs. ~INR45 on DOCSIS 3 (Data over Cable fold from 2013 to 2018

  15. Slide 15: Company Overview

    Company Overview 15 SITI Cable Network Ltd. Confidential

  16. Slide 16: Promoter Group - Corporate Structure

    Promoter Group - Corporate Structure  Launched in 1976, the Parent Group (“Essel Group”) is one of India’s leading business houses, with a dominant presence in Media  One of India's leading vertically integrated media and entertainment group, and also one of the leading producers, content aggregat

  17. Slide 17: SITI Cable: A Pioneer in Indian Cable TV Distribution

    SITI Cable: A Pioneer in Indian Cable TV Distribution 10.7 Mn 5.58 Mn 130 cities 5 Cities 74,500 Digital Cable Broadband Cable Universe Presence Broadband presence Subscribers Subscribers Multi-System Operator (MSO) providing Digital/ Analog Cable TV and Broadband Services AMJ’15 Subscriber Universe

  18. Slide 18: SITI Cable: Presence across the Country

    SITI Cable: Presence across the Country Uttar Pradesh / Uttranchal  Kanpur  Greater Noida  Varanasi Jharkhand / Bihar  Jamshedpur Market Share Punjab  Noida  Patna Haryana  Ludhiana  Dhanbad  Hissar  Chandigarh  Allahabad  Ghazipur  Deoghar Phase 1: 23%  Rohtak  Amritsar  Basti  Gha

  19. Slide 19: On a progressive growth path

    On a progressive growth path 2006  Wire and Wireless (India) Ltd. Incorporated 2007  Implemented CAS in metros of Delhi, Mumbai, Kolkata & Chennai 2008  Initiated mass Digitization through HITS Services 2009  Right Issued of INR4500 mn fully subscribed 2010  India’s largest Multi System Operato

  20. Slide 20: An Experienced Management Team leads the Company

    An Experienced Management Team leads the Company Mr. V D Wadhwa: Executive Director and CEO Mr. Wadhwa is an Alumnus of Harvard Business School & a fellow member of the Institute of Company Secretaries of India. He has over 30 years of work experience including over 20 years in multinational compani

  21. Slide 21: SITI Cable has a sizeable free float and institutional ownership

    SITI Cable has a sizeable free float and institutional ownership Shareholding Pattern Key Investors 678 Mn Shares 1.1% Foreign 13.8% Institutions 7.6% 2.7% 8.7% 66.0% Domestic Institutions Promoters Individuals Indian Companies Mutual Funds FIIs Others As of 25th Sep. 2015 Others include retail, ban

  22. Slide 22: SITI Cable - Financial Snapshot

    SITI Cable - Financial Snapshot Quarterly Revenue Trends (INR Mn) Revenue Split by services, AMJ15 2,787 3.9% 3.8% 4.7% 2,238 2,234 2,305 2,110 Subscription Carriage Activation 31.6% Broadband 56.0% Others AMJ'14 JAS'14 OND'14 JFM'15 AMJ'15 EBITDA (INR Mn) Operating EBITDA (INR Mn) 600 24.0% 400 365

  23. Slide 23: SITI Cable - Financial Snapshot

    SITI Cable - Financial Snapshot FY Consolidated Revenues (INR Mn) FY Subscription Income (INR Mn) 9,370 5313 7,103 3395 4,837 3,643 1,207 FY12 FY13 FY14 FY15 FY13 FY14 FY15 Digital Subscriber Base (Mn) Broadband Subscriber Base 74,500 70,100 6.0 5.4 5.6 100% 4.9 4.6 54,000 4.0 48,375 4.0 43,100 51%

  24. Slide 24: Vision: To be a leading Triple Play Company in 5 years

    Vision: To be a leading Triple Play Company in 5 years Strategy Increase Digital Broadband & VAS Margin Expansion Subscriber base  Improve collections  Focus cities – NCR, from LCOs  Expand in Phase 3/ Bengaluru, Hyderabad,  Optimization of Contiguous territories Select cities of Haryana, (Conte

  25. Slide 25: Key Differentiators vs. Other MSOs

    Key Differentiators vs. Other MSOs 1  Promoter entity is India’s leading Media conglomerate with interests spanning across Part of a USD8.5 Bn broadcasting (One of India’s largest network of Hindi GEC and entertainment channels), distribution (India’s first and largest DTH TV business) and SITI Cab

  26. Slide 26: Annexure

    Annexure 26 SITI Cable Network Ltd. Confidential

  27. Slide 27: SITI Cable: Profit & Loss Statement

    SITI Cable: Profit & Loss Statement Quarter Ended Income Statement (INR Million) Q1 FY 2016 Q4 FY 2015 Q1 FY 2015 Net Operating Revenues 2281 2,560 2,090 Other Income 24 227 20 Total Revenue 2,305 2,787 2,110 Total Expenditure 1,924 2,466 1,748 EBITDA 381 321 363 Finance cost 339 311 304 Depreciatio

  28. Slide 28: Robust Back End Systems and Infrastructure

    Robust Back End Systems and Infrastructure  Presence across 130 cities with 15 digital head ends and a network of ~14,600 Kms of optical fibre and coaxial cable  Broadband services being offered on DOCSIS 2/3 Technology Headends Set Top Boxes Modems Servers CAS Software/ SMS 28 SITI Cable Network

  29. Slide 29: Promotional Campaigns for Cable & Broadband

    Promotional Campaigns for Cable & Broadband The above campaigns are representational only and do not reflect current prices 29 SITI Cable Network Ltd. Confidential

  30. Slide 30: Thank You!

    Thank You! www.siticable.com 30 SITI Cable Network Ltd. Confidential

SITI Cable Network — Q1 FY2016 Earnings Presentation on 6ix