Music Broadcast Ltd. · NSE:RADIOCITY
Music Broadcast — FY2019 Earnings Presentation
20 slides from Music Broadcast's earnings presentation, May 27, 2019
Slide 1: Cover letter to stock exchanges
May 27, 2019 1. National Stock Exchange of India Ltd. 2. BSE Limited Exchange Plaza, 5th Floor Corporate Relationship Department Plot No. C/1, G Block; Bandra (East) Phiroze Jeejeebhoy Towers Mumbai 400 051 Dalal Street; Fort Mumbai 400 001 NSE Scrip Code: RADIOCITY BSE Scrip Code: 540366 ISIN: INE9
Slide 2: Music Broadcast Limited Investor Presentation May 2019
Music Broadcast Limited Investor Presentation May 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Music Broadcast Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: Financial & Operational Highlights
Financial & Operational Highlights
Slide 5: Delivering Results as Promised; ahead of expectations!
Delivering Results as Promised; ahead of expectations! In Rs. Crs Revenue EBITDA PBT CAGR CAGR +13% CAGR 325 113 +32% 96 298 +13% 271 75 97 226 91 57 42 78 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 GROWING AT DOUBLE DIGIT CAGR 4
Slide 6: 1. Consistent Revenue Growth
1. CONSISTENT Revenue Growth In Rs. Crs +9% 325 298 FY19 Highlights : ▪ Continues to grow more than the industry with 9% revenue growth ▪ Revenue Contribution from Phase III markets continues to grow disproportionately with improving utilizations ▪ Legacy Markets grew through a mix of yield improvem
Slide 7: 2. Continuing Outperformance in Operating Profits
2. Continuing OUTPERFORMANCE in Operating Profits In Rs. Crs 32.6% 34.9% +17% 113.2 FY19 Highlights : 97.1 ▪ Best in class margins in the industry ▪ Highest ever EBITDA and EBITDA margin on an annual basis ▪ Matured stations currently at ~45% operating margins ▪ Improving Yield and utilization on ba
Slide 8: 3. PBT Showing 3X Revenue Growth
3. PBT Showing 3X Revenue Growth In Rs. Crs 25.2% 29.4% +27% 95.5 FY19 Highlights 75.2 ▪ PBT growth at 27% i.e. 3X the revenue growth ▪ ~420 basis point improvement in PBT Margins ▪ Efficient reach expansion & optimum capital allocation towards Phase III stations FY18 FY19 7
Slide 9: FY19 - Growth Trajectory Throughout the Year!
FY19 - Growth Trajectory Throughout the Year! EBITDA PBT Margin Profile +23% +38% 32 28 EBITDA Margin PBT Margin 29 25 26 27 22 20 39.0% 34.4% 33.2% 32.9% 34.4% 28.7% 26.9% 27.4% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY19 Q2FY19 Q3FY19 Q4FY19 8
Slide 10: Q4 FY19 - Strong Performance with Record Margins
Q4 FY19 - Strong Performance with Record MARGINS In Rs. Crs Revenue EBITDA & Margins PBT & Margins +302 bps +446 bps +8% +17% +24% 82 32 39.0% 28 34.4% 27 76 23 36.0% 29.9% Q4FY18 Q4FY19 Q4FY18 Q4FY19 Q4FY18 Q4FY19 Q4FY18 Q4FY19 Q4FY18 Q4FY19 SUSTAINABLE Operating performance in spite of macro econo
Slide 11: Category Trends
Category Trends Q4 FY19 Industry Volume breakup: FY19 Industry Volume breakup: Government BFSI Real Estate Government E commerce Real Estate 23% 9% 8% 18% 8% 8% Growth (YOY) Growth (YOY) 11% 20% 10% 17% 42% 10% Source: Aircheck 15 Markets 10
Slide 12: Listenership trends in Mumbai and Bengaluru
Listenership trends in Mumbai and Bengaluru Listenership Market Share Data Mumbai Bengaluru 20 30 20 % Share % Share 10 0 0 FY15-16 FY16-17 FY17-18 FY18-19 FY15-16 FY16-17 FY17-18 FY18-19 Mirchi One Radio City Red Big Fever Mirchi One Radio City Big Ishq Nasha Redtro Indigo Fever Mirchi 95 Average o
Slide 13: Profit and Loss
Profit and Loss In Rs. Crs Q4FY19 Q4FY18 YoY Q3FY19 QoQ FY19 FY18 YoY Revenue 81.9 75.9 8% 87.0 -6% 324.7 298.3 9% Licenses Fees 5.0 5.3 5.5 21.4 21.3 Employee Expenses 16.3 17.1 16.7 69.0 68.9 Other Expenses 28.6 26.2 36.2 121.2 111.0 EBITDA 32.0 27.4 17% 28.6 12% 113.2 97.1 17% EBITDA Margin 39.0%
Slide 14: Balance Sheet
Balance Sheet Assets (In Rs. Crs) Mar-19 Mar-18 Liabilities (In Rs. Crs) Mar-19 Mar-18 Total Non Current Assets 334.3 490.1 Shareholders Fund 603.3 599.9 Fixed Assets 310.0 296.9 Share Capital 55.3 57.1 Tangible Assets 74.9 41.2 Intangible Assets 235.1 255.7 Other Equity 548.0 542.8 Intangible Asset
Slide 15: Key Updates
Key Updates Update on Acquisition of Friends FM 91.9 ▪ Terminates Business Transfer Agreement dated 24 April 2019 with Ananda Offset Private Limited (Friends FM 91.9) on account of uncertainty of receipt of regulatory approval from MIB ▪ Original Sales Alliance with Friends FM 91.9 continues for Kol
Slide 16: Creating Value for Future Growth
Creating Value for FUTURE GROWTH Period (For the year 2018-2019) In Rs. Crs 170 160 150 140 130 44 ~Rs. 250 Cr 120 86 of Cash, Cash Equivalents 110 & Investments 100 40 (as on March 2019) 90 80 76 79 70 60 50 40 Opening Balance Net Cash Change in BuyBack & Others Cash Balance generated from Investin
Slide 17: Acquisition Details
it: Radio City (RN IAGRAN INITIATIVE _ RAG RAG MEIN Acquisition Details DAUDE CITY.
Slide 18: Acquisition of BIG FM
Acquisition of BIG FM Target Reliance Broadcast Network Limited Company Acquisition of 58 Pan-India Radio Stations; 40 Stations to be Retained, 18 Stations may have to be surrendered by RBNL Key Assets under law Valuation Enterprise Value* : Rs. 1,050 Crore, Equity Value* : Rs. 350 Crore • All Cash
Slide 19: Transaction Rationale
Transaction Rationale RadioCity India’s No.1 • Combined 79 Stations largest in the country, FM Foot Print of ~82% Radio Network • Market Leadership across all key markets in terms of listenership & advertising BIG FM – • Popular brand with 13 Years of presence, offering in the Retro Music format, wi
Slide 20: Contact Us
CIN: L64200MH1999PLC137729 Ms. Sangeetha Kabadi Email : sangeethak@myradiocity.com Mr. Jimmy Oza Email: jimmyo@myradiocity.com www.radiocity.in Contact Us CIN: U74140MH2010PTC204285 Ms. Payal Dave Email : payal.dave@sgapl.net Mr. Jigar Kavaiya Email : jigar.kavaiya@sgapl.net www.sgapl.net