Hathway Cable & Datacom Ltd. · NSE:HATHWAY
Hathway Cable & Datacom — Investor Presentation (November 2017)
36 slides from Hathway Cable & Datacom's investor presentation, November 2017
Slide 1: Hathway Cable and Datacom Limited Investor Presentation – November 2017
Hathway Cable and Datacom Limited Investor Presentation – November 2017 1
Slide 2: Company Overview
Company Overview 2
Slide 3: Company Overview
Company Overview • Hathway Cable & Datacom Limited (Hathway) promoted by Raheja Group, is one Consolidated Revenue* (INR Mn) & of the largest Multi System Operator (MSO) & Cable Broadband service providers in EBITDA Margin (%) India today. 14,000 16.2% 20.0% 13,000 15.0% • The company’s vision is to
Slide 4: Group Holding Structure
Group Holding Structure Broadband Business • Parent Company 100% FDI under Hathway Cable & automatic Datacom Limited Cable television Business* • Hathway Digital Private Limited^ route in Cable (HCDL) and Broadcasting sector allowed with effect from December GTPL Hathway Limited# • Promoter company
Slide 5: Growth Strategy
Growth Strategy Leverage Trendsetter in broadband and Differentiated broadband industry Cable Television Objective customer on speed, GBs, Price presence to give experience & Value For Money differentiated Build Value for all equation content, services and stakeholders in the applications Value chai
Slide 6: Hathway at a Glance
Hathway at a Glance Broadband 53.2% 16.8% 33.9% 28.6% 200 MBPS Upto 1 TB YoY Annual 3 Year CAGR in 3 Year CAGR of 3 Year CAGR of Maximum speed Data offered Revenue growth ARPU Growth Broadband homes Broadband offered to its with average passed and presence subscribers customers consumption of INR 4,
Slide 7: Leadership
Leadership Board members Experienced management team with strong track record Rajan Gupta – Managing Director – IIM Bangalore alumni with over 20 years of experience in blue Sridhar Gorthi chip companies. Worked with Asian Paints, Coca Cola and Tata Tele Services in leadership role. Chairman & Indep
Slide 8: Key Milestones
Key Milestones Promoter funding Acquired 2 lakh Providence Preferential allotment of Introduced and launch Cable television Acquired Equity INR 4.5 Bn to GPON FTTH high Primary 50% stake in acquires Capital speed internet subscribers GTPL NewsCorp Research & services stake Cable television Tybourne
Slide 9: Geographical Presence
Geographical Presence Strong market share in important regional cable markets in India Haryana Faridabad |Gurgaon | Panjpat Uttar Pradesh Delhi NCR Allahabad | Ghaziabad | Noida And 3 other cities Madhya Pradesh Bhopal City | Gwalior | Indore City Sikkim And 11 other cities Gangtok West Bengal Rajas
Slide 10: High Quality Infrastructure
High Quality Infrastructure Advanced technology and equipment provided by Leading Technology Vendors leading technology vendors STBs (SD & • Overground: 27,000 Kms HD) • Leased: 4,000 Kms Head-ends/ • Underground: 500 Kms Compression Optic Fibre Cable Network Modems • 6 Primary Headends and 7 Second
Slide 11: Awards and Accolades
Awards and Accolades Year 8 Times 2011 2013 2015 2015 2016 2016 2017 Star News Brand Economic Times Indian Telly Aavishkar Aavishkar LACP Aavishkar Organized by Excellence Euromoney Best Tech Brand Awards Media Group Media Group Vision Awards Media Group Awards Award Most Outstanding Contributing Be
Slide 12: GTPL Hathway Limited
GTPL Hathway Limited Advanced technology and equipment provided Strong Market Share in regional cable markets in India by leading technology vendors Key Highlights Q2-FY18 • Overground: 5,406 KMs #1 67% Present in 189+ towns across 10 states • Underground: 600 KMs MSO in Gujarat Market Share • GUJAR
Slide 13: Financial Trends
Financial Trends Comparable Revenue (INR in Mn) Comparable EBITDA (INR Mn) 3,900 900 3,700 800 867 3,759 3,656 765 3,500 700 3,487 3,300 3,405 600 645 598 3,100 3,234 500 3,045 471 2,900 400 389 2,700 300 Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 Q1-FY18 Q2-FY18 Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 Q1-FY18 Q2-FY18
Slide 14: Broadband Business
Broadband Business 14
Slide 15: Broadband Business Overview
Broadband Business Overview • Hathway holds a “Category-A” PAN India ISP license and was the Consolidated Broadband Revenue (INR Mn) first cable television services provider to offer broadband Internet 4,955 services. 3,234 2,601 • The company is India’s largest cable broadband services provider, wi
Slide 16: Broadband – Value Chain
Broadband – Value Chain Bandwidth Backbone Hathway NOC / Data Centre Content Peering / Caching Local Loops and Fibre Optic ring Routing and switching BSS and OSS Engine infrastructure from Tata, Bharti, engine for Bandwidth and Billing / Customer provisional Vodafone and / or Hathway to connect to P
Slide 17: Broadband – Competitive Advantage
Broadband – Competitive Advantage Final Output Technology / Customer / Service Infrastructure Maximum speed is up to • DOCSIS 3.0 and 3.1 – pioneers in • R Madhavan as brand ambassador 200 Mbps launching high-speed 100 Mbps • Partnering with various content broadband. providers, education portals an
Slide 18: Broadband Unit Economics
Broadband Unit Economics Revenue (INR) Cost (INR) Investment per Subscriber (INR) Particulars INR / Unit % Particulars INR / Unit % Particulars INR / Unit Consumer Price 826 118% Break-up of Cost Cost per Home Pass 600 GST 126 18% Bandwidth and 63 9% Penetration 20% leaseline cost NET REVENUE 700 10
Slide 19: Quarterly HCDL Income Statement
Quarterly HCDL Income Statement Income statement (INR Mn) Q2-FY18 Q1-FY18 Q-o-Q Growth H1-FY18 Subscription Broadband 1,311 1,290 2% 2,601 Other Non operational income# 59 9 556% 68 Total Income 1,370 1,299 5% 2,669 Employee Cost 105 89 18% 194 Other Expenses 667 710 -6% 1,377 Total Expenditure 772
Slide 20: Half Yearly HCDL Balance Sheet
Half Yearly HCDL Balance Sheet Statement of Assets and Liabilities (INR Mn) Standalone As on 30.09.17 As on 31.03.17 1.Shareholder’s Funds a. Equity Share Capital 1,661 1,661 b. Other Equity 8,528 8,114 Sub Total – Shareholder’s funds 10,189 9,775 2. Non-current liabilities a. Borrowings 5,451 5,862
Slide 21: Cable Television
Cable Television 21
Slide 22: Cable Television Business Overview
Cable Television Business Overview • Hathway offers its cable television services across 350+ cities and major Consolidated Total Cable television Revenue (INR Mn) towns, operating in geographical regions which constitute important 8,489 8,134 markets for advertisers and broadcasters. • Hathway is o
Slide 23: Cable TV – Overview
Cable TV – Overview Cable television Subscribers (Mn) Cable television STBs (Mn) Cable television Exit ARPU (INR) Phase I Phase II 105 105 105 98 Non-Digitized 95 95 1.6 2.4 0.3 55 58 50 41 Digitized Phase IV FY17 Q1-FY18 Q2-FY18 7.2 0.9 Phase III Phase I Phase II Phase III Phase IV 2.3 Dominant Mar
Slide 24: Cable TV – Value Chain
Cable TV – Value Chain Broadcast Processing & Transmission Consumption Consumption MSO – Major Digital Headend Satellite signal receiver + encoders Downlink SDI IRD Encoder SDI IRD Encoder IP IRD Encoder Primary Secondary Subscribers Subscribers Uplink from IRD IP Encoder Broadcasters CAS • NDS Mult
Slide 25: Cable TV – Competitive Advantage
Cable TV – Competitive Advantage Final Output Customer / Technology / Infrastructure Service Digital subscribers at • Hathway Connect enables LCOs to manage • Offering innovative packages as their network independently & transparently. per regions served. 7.2 Mn in 2017 • Subscribers can access thei
Slide 26: Cable TV Unit Economics
Cable TV Unit Economics Present Scenario Estimate TRAI’s new tariff order Particulars Phase I & II Phase III & IV • TRAI’s proposed regulatory changes on tariff may drive structural change in the entire value chain (Broadcaster – Distributor – INR / Unit INR / Unit Consumer). Consumer Price 295 170
Slide 27: TRAI Tariff Impact Analysis
TRAI Tariff Impact Analysis Key Provisions Particulars Present New Tariff order • Distributors can charge a maximum INR 130 Content, Bundled Price for bouquet of Channels will be offered at a-la- (ex taxes) per sub per month as network Carriage & channels with discount up to 90% on carte price (MRP)
Slide 28: Quarterly HDPL Income Statement
Quarterly HDPL Income Statement Q-o-Q Income statement (INR Mn) Q2-FY18 Q1-FY18 H1-FY18 Growth Subscription CATV 1,401 1,325 6% 2,726 Placement 740 702 5% 1,442 Activation 258 242 7% 500 Other operating income 50 96 -48% 146 Total Income 2,449 2,365 4% 4,814 Pay Channel Cost 1,385 1,352 2% 2,737 Emp
Slide 29: Financials
Financials 29
Slide 30: Historical Income Statement as per Ind-AS
Historical Income Statement as per Ind-AS Income statement (INR Mn) FY17 FY16 Y-o-Y FY17 FY16 Y-o-Y Standalone Consolidated Cable television Subscription 4,515 3,842 17.5% 4,728 3,804 24.3% Broadband Revenue 4,803 3,066 56.6% 4,955 3,234 53.2% Placement 2,714 3,220 -15.7% 2,725 3,220 -15.4% Activati
Slide 31: Historical Balance Sheet as per Ind-AS
Historical Balance Sheet as per Ind-AS Statement of Assets and Liabilities (INR Mn) Standalone Consolidated FY17 FY16 FY17 FY16 A. Equity and Liabilities 1.Shareholder’s Funds a. Share Capital 1,661 1,661 1,661 1,661 b. Reserves and Surplus 8,114 9,652 7,293 9,227 Sub Total – Shareholder’s funds 9,7
Slide 32: Historical Financial Charts
Historical Financial Charts Standalone Revenue (INR Mn) Standalone EBIDTA & Margins (INR Mn) Consolidated Revenue (INR Mn) iGAAP IND-As iGAAP IND-As iGAAP IND-As 13,305 41.0% 18,587 11,209 15,934 9,878 10,381 13,682 19.6% 11,482 11,550 19.4% 17.1% 14.8% 2,669 1,913 1,540 1,920 2,604 1,098 FY14 FY15
Slide 33: Capital Market Information
Capital Market Information Share Price Performance 60.0% Hathway BSE Sensex 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% Oct/16 Nov/16 Dec/16 Jan/17 Feb/17 Mar/17 Apr/17 May/17 Jun/17 Jul/17 Aug/17 Sep/17 Price Data (30th SEPTEMBER, 2017) INR Shareholding Pattern (30th September, 2017) Face Valu
Slide 34: Disclaimer
Disclaimer Hathway Cable and Datacom Ltd Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation tha
Slide 35: Thank You
Thank You 35
Slide 36: Abbreviations
Abbreviations APRU Average revenue per user CAS Conditional access system DTH Direct-to-home DVR Digital video recorder DTT Digital terrestrial TV xDSL Digital subscriber lines FTA Free-to-air TV FTTx Fiber-to-the-x, which refers to broadband network architecture that used optical fiber to provide l
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