Entertainment Network (india) Limited · NSE:ENIL
Entertainment Network (india) — Investor Presentation (February 2007)
28 slides from Entertainment Network (india)'s investor presentation, February 2007
Slide 1: Investors Presentation February 2007
Investors Presentation February 2007 1
Slide 2: Disclaimer
Disclaimer Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties rela
Slide 3: Presentation Path
Presentation Path • Indian Media & Ad Industry • ENIL & TIMPL Overview • Financial Highlights • Business Outlook and Strategy 3
Slide 4: Indian Media & Ad Industry
Indian Media & Ad Industry ENTENTAINMERY HEIWORR (IMDIAI LID,
Slide 5: Ad Market – A Leveraged Play on Economy
Ad Market – A Leveraged Play on Economy 23.4% 25.0% 20.0% 14.1% 12.8% 13.7% 12.9% 15.0% 11.8% 8.7% 8.1% 9.6% 7.5% 10.0% 5.0% 0.0% 2002 2003 2004 2005 2006 GDP Growth Ad revenue Growth • Nominal GDP expected to grow at 13% - 14% p.a. Source: CIA – 2006, Tam Adex 5
Slide 6: Indian Media Sector on the fast lane
Indian Media Sector on the fast lane 2000 2001 2002 2003 2004 2005 2006E India 0.34 0.36 0.36 0.40 0.44 0.45 0.47 Asia-Pacific 0.85 0.82 0.80 0.82 0.82 0.82 0.82 Latin America 0.85 0.80 0.72 0.72 0.71 0.72 0.74 Europe 0.90 0.83 0.79 0.77 0.79 0.79 0.79 North America 1.52 1.39 1.37 1.33 1.32 1.28 1.2
Slide 7: Ad Revenue landscape
Ad Revenue landscape • Ad revenue grew by 23.4% in 2006 vis-à-vis 14.1% in 2005 • Radio emerged as the fastest growing segment 7
Slide 8: ENIL Overview
ENIL Overview Our Vision is to be “A Leading City-centric Media Company By Delivering Unique Audiences Through Media Vehicles Like FM Radio, Experiential Marketing And Out-of-home Media” 8
Slide 9: We are part of Times Group: India's Largest Media Conglomerate
We are part of Times Group : India’s Largest Media Conglomerate Bennett Coleman & Co Ltd Publishing Division Times Internet Times Global The Times of India Limited Broadcasting The Economic Times Navbharat Times Maharashtra Times Times Infotainment Sandhya Times Media Limited indiatimes.com News Cha
Slide 10: Company Snapshot
Company Snapshot Headquarters: Mumbai, India Incorporated: 1999 Listed: February 15, 2006 Subsidiary: Times Innovative Media Private Limited (TIMPL), incorporated on October 26, 2005 Business: – ENIL Radio Broadcasting brand Radio Mirchi – TIMPL Out-of-home Media brand Times OOH; and Experiential Ma
Slide 11: Radio Industry: On a song
Radio Industry: On a song Radio Industry Share (%) Indian Radio Industry: 16.0 • Rs 5.1Bn (US$ 114 M) in 2006 15.4 • 2006- 2010E : 32% CAGR 13.0 12.0 • Share expected to touch 8% 10.0 9.5 8.5 7.0 7.0 4.9 3.8 4.0 3.1 1.0 Philipines New Singapore World Thailand China UK India -2.0 Zealand Average Sour
Slide 12: Deregulation unlocks the true potential
Deregulation unlocks the true potential EXAMPLE: BELGIUM Ad spend BEF mn Benefits of CAGR FM deregulated in deregulation 31 % 3321 south Belgium; Current ad • Audience north Belgium still spend ratio 2,670 – More choices as regulated new radio • North Belgium: 1,931 stations come up CAGR 1.2% 7.5 %
Slide 13: Evolution of Radio Industry
Evolution of Radio Industry E v olu tion o f Phase 3 ra d io ind u s try “E m e rg e n c e o f w in n e rs ” Phase 2 “E n try o f c o m p e titio n ” • L e a d e rs e xp a n d re a c h Ph ase 1 – B u yin g o u t s ta tio n s – B id d in g fo r “P u b lic m o n o p o ly ” • P riva te s ta tio n s c o
Slide 14: Indian FM Radio Industry Transition
Indian FM Radio Industry Transition • Roll-out of Phase II of privatization From existing 12 cities to 87 cities • Fixed License Fee regime changed to From 21 stations to 266 OTEF / Migration Fees stations + Revenue share • Annual license fee 4% From 7 players to 43 of gross revenues players • FDI i
Slide 15: Key Players in Indian FM Radio Industry
Key Players in Indian FM Radio Industry Category Player A+ A B C D Of top 13 towns Total ENIL (Radio Mirchi) 4 9 11 7 1 13 32 Adlabs (Big FM) 4 4 10 24 3 8 45 Sun TV (South Asia FM) - 6 9 5 3 6 23 Sun TV (Kal Radio) 1 2 4 14 - 3 21 MBPL (Radio City) 3 8 3 6 - 11 20 Mid-Day (Radio One) 4 3 7 7 HT Med
Slide 16: Radio Mirchi: The Radio Station India tunes to…
Radio Mirchi: The Radio Station India tunes to… • Widely recognized brand – Presence in key markets – Radio Mirchi today reaches more people than the #1 TV/Print media Brands in Delhi and Mumbai • Innovative Content: – Strong relationships with Hindi and other film fraternities – Mature research cul
Slide 17: Further Consolidates its Dominance
Further Consolidates its Dominance #1 in Listenership Millions Listenership in Delhi Listenership in Kolkata 5.0 4.46 4.20 3.68 3.0 2.73 4.0 2.83 3.0 2.24 2.09 2.04 1.73 2.0 2.0 1.35 1.0 0.0 1.0 0.76 0.58 Radio Mirchi Radio City Red FM 0.0 Listenership in Mumbai Radio Mirchi Red FM Amar FM 106.2 ILT
Slide 18: Other Operating Highlights
Other Operating Highlights Leads content innovation Preferred radio partners for all big banner movies released in the country eg. Vivaah, Babul, Kabul Express, Dhoom2, Guru, and Salaam-e-Ishq Signed agreement with T-series for Music royalty 9-year agreement with T-series, the largest music company
Slide 19: Times OOH Media: First Organised Player In Indian OOH Media Industry
Times OOH Media: First Organised Player In Indian OOH Media Industry • Largely Fragmented Industry – Scope of high growth for organized players – Times OOH first media powerhouse with well known brand and Indian industry know-how • Ability to Offer Integrated Marketing Solutions – Diversified Produc
Slide 20: Growing portfolio of premium outdoor assets
Growing portfolio of premium outdoor assets Properties Start Date End Date Length of Contract BQS Mumbai 1-Aug-05 31-Dec-08 3.50 Patel Bridge 1-Jul-06 30-Jun-09 3.00 DMRC-CP 4-Oct-05 3-Oct-07 2.00 DMRC- Dwarka 1-Apr-06 31-Mar-11 5.00 DND Flyway 1-May-06 30-Apr-08 2.00 LED 20-Mar-06 NA NA Kolkata Met
Slide 21: 360° Experience: Eventful Consumer Engagements
360°Experience: Eventful Consumer Engagements • Managing large format events – Smart Living Awards – Habitat for Humanity’06 – Pravasi Bharatiya Diwas’06 – Filmfare Awards – Miss India Pageant – SBI Centenary celebration • Key strengths – National presence (8 branches) – Experienced team of professi
Slide 22: Financial Highlights
Financial Highlights ENTENTAINMERY HEIWORR (IMDIAI LID,
Slide 23: Q3FY2007 Performance Overview
Q3FY2007 Performance Overview (All comparisons with Q3FY2006) Total Income of Rs.484.1 million, growth of 30.7% Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at Rs. 176.5 million, up 20.8% EBITDA margin stood at 36.5% Net Profit at Rs. 124.0 million, growth of 13.9% 23
Slide 24: Q3FY2007 Performance Overview (Cont'd…)
Q3FY2007 Performance Overview (Cont’d…) (All comparisons with Q3FY2006) On a like basis (excluding 3 new stations): Total Income of Rs. 392.1 million, growth of 5.8% EBITDA stood at Rs. 151.1 million, up 3.4% EBITDA margin stood at 38.5% EBITDA margin of new stations – 28% 24
Slide 25: Future Outlook And Strategy
Future Outlook And Strategy 25
Slide 26: Future Outlook And Strategy
Future Outlook And Strategy Ad industry is growing at 23% as per the recent Ad Ex India (a division of Tam Media Research) study. The market size in CY 2006 was Rs. 16.3 billion (Previous Year Rs. 13.2 billion) Radio is the fastest growing media sector – grew by 58% 26
Slide 27: Future Outlook And Strategy
Future Outlook And Strategy Expand our footprint in radio broadcasting – Based on the present rate of progress, rollout of the remaining 22 stations is expected to be complete by July 31, 2007 – Explore opportunities in international markets Maintain market leadership in fast growing radio industry
Slide 28: Thank You
THANK YOU 28
Entertainment Network (India) — Investor Presentation (February 2007) on 6ix