Siti Networks Limited · NSE:SITINET
Siti Networks — Q3 FY2020 Earnings Presentation
23 slides from Siti Networks's earnings presentation
Slide 1: SITI Networks Limited Q3FY20 Investor Presentation
SITI Networks Limited Q3FY20 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: Industry Overview
Industry Overview siti NETWORKS
Slide 4: 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 5: 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 6: 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 offered to LCOs 03 SITINET listed on NSE 04 Bouque
Slide 7: SITI Networks: India's Leading Multi-System Operator
SITI Networks India’s Leading Multi-System Operator 9.1 Mn 580+ 4.1 Lakh 1.7 Mn 2 Lakh Active Digital Locations High Definition Broadband Broadband Customers Footprint Customers Home Passes Customers 45 Mn+ ~6% Consumers Pay TV HHs in Reached India 7
Slide 8: New Tariff Order implemented in Mar'19
New Tariff Order implemented in Mar’19 Key features of Tariff Order Implementation of the network distribution model shifted the balance of power in favour of DPOs 8
Slide 9: Modification in New Tariff Order – Jan'20
Modification in New Tariff Order – Jan’20 Brought welcome changes, giving more power to DPOs Capping on Simplified NCF Addressed Twin Condition Channel pricing Structure Multi-TV Homes ▪ MRP of channels in a bouquet ▪ Capping of Rs 12 for Pay ▪ Simplified 2 slabs: • NCF on Multi-TV is capped at can’
Slide 10: Company Overview
Company Overview 10 siti NETWORKS
Slide 11: India's Leading Digital TV Network
• India’s Leading Digital TV Network • Present in 19+ States & UT across India • Footprint across 580+ locations • Delivering content to 45 Mn+ consumers 24/7 11
Slide 12: India's Largest MSO trusted by over Distribution Partners
India’s Largest MSO trusted by over Distribution Partners 12
Slide 13: SITI Networks Competitive Advantage
SITI Networks Competitive Advantage 01 02 03 04 05 India’s largest MSO Using latest MPEG4 OYC Subscriber In discussion with Professional STBs Management System various service Management Presence across 800 providers for creating locations Broadband through Conax CAS value adds for SITI Lean and Agi
Slide 14: 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 15: Key Investors
SITI Networks Sizeable Free Float & Institutional Ownership 1.5% 3.9% Mutual Funds Others Key Investors 9.4% 65.7% Promoters Individuals Foreign 11.8% FII’s Institutions 7.7% Shareholding Pattern Indian Companies 872 Mn Shares Domestic PRICOMM MEDIA Institutions DISTRIBUTION As of 31 Dec 2019 Others
Slide 16: Technology Infrastructure
Technology Infrastructure Video & Broadband • 10 Digital Headends; Intra-city OFC and Coax Network of ~33,000 Kms covering ~ 800 locations • Transport of Digital CATV signals on 1.2 Gbps links across the country; ~500 IP Points • Hybrid (DOCSIS+ GPON) Technology to offer Cable Broadband services Dig
Slide 17: Financials & Operating Metrics
Financials & Operating Metrics 17
Slide 18: SITI Networks Declares Strong Results
SITI Networks Declares Strong Results • Operating EBITDA leaps 1.24x y-o-y to Rs.2,676 Mn • Operating EBITDA Margin jumps 1.1x y-o-y to 22% • Subscription Revenue surges 19.5% y-o-y to Rs.8,687 Mn • Total Revenue1 rises 12.7% y-o-y to Rs. 12,189 Mn • Digital Subscriber ARPU leaps 1.79x y-o-y to Rs.1
Slide 19: Stronger & Ahead: 9MFY20
Stronger & Ahead 9MFY20 9MFY20 figures
Slide 20: 9MFY20 figures
OPERATING EBITDA MARGINS: | JUMPS TO 1 ORE 22% ZINDAGI ks NETWORK
Slide 21: Exceeded Expectation in YTD Dec'FY20 vs YTD Dec'FY19
Exceeded Expectation in YTD Dec’ FY20 vs YTD Dec’ FY19 Consolidated- Waterfall Analysis • Gross Margin = Subscription + Carriage - Pay Channel – Marketing Cost • Gross Margin: ➢ Rate variance (+Rs 1861 Mn) ➢ Vol/Other Variance (-Rs 1,658 Mn) 21 21
Slide 22: Business Performance
Business Performance Q-o-Q Basis 22
Slide 23: Thank You
Thank You Investor Relations, SITI Networks Limited investorrelations@siti.esselgroup.com