Entertainment Network (India) Limited · NSE:ENIL
Entertainment Network (India) — IDFC SSKI Emerging Stars Conference 2009
34 slides from Entertainment Network (India)'s conference presentation, Feb 5, 2009
Slide 1: IDFC SSKI Emerging Stars Conference 2009
IDFC SSKI Emerging Stars Conference 2009 February 5, 2009 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 • Times Group • Indian Media Industry • ENIL Overview • Financial Highlights • Strategic Direction 3
Slide 4: Times Group
Times Group ENTERTAINMENT NETWORK (INDIA) LTD. expemtence
Slide 5: Corporate Structure
Corporate Structure Bennett Coleman & Co. Limited Publishing Division Times Internet Times Global Private The Times of India Limited Broadcasting Treaties The Economic Times Navbharat Times News Channel – Times indiatimes.com Maharashtra Times Times Now Infotainment 58888 Sandhya Times Business News
Slide 6: Indian Media Industry
Indian Media Industry ENTERTAINMENT NETWORK (INDIA) LTD. expemtence
Slide 7: Ad Revenues Forecast for 2009
Ad Revenues Forecast for 2009 • As per Group M, overall ad industry to grow at ~9% in 2009 • TV, radio, and internet to outperform overall industry • Low cost media like internet and radio to grow much faster • Growth of print sector to be lower than TV due to higher exposure to real estate, auto, a
Slide 8: India Media Industry - Growth Drivers
India Media Industry - Growth Drivers GDP Growth rate of 6% - 7%, Ad spend growth – 9% Young nation with Higher spending Media & Low Media power Entertainment Penetration – Industry Untapped rural Largest workforce in markets the world Regulatory reforms (PPP) & Foreign Investment 8
Slide 9: 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” 9
Slide 10: Company Snapshot
Company Snapshot Headquarters: Mumbai, India Incorporated: 1999 Listed: February 15, 2006 Subsidiaries: Times Innovative Media Limited (TIM) Alternate Brand Solutions Limited (ABSL) Businesses: – ENIL Radio Broadcasting brand Radio Mirchi – TIM Out-of-home Media brand Times OOH – ABSL Experiential M
Slide 11: ENIL: Building an 'emerging media' network
ENIL: Building an ‘emerging media’ network Company Structure • Comprehensive emerging media Company Business Brand offering – Network of emerging media (radio, BCCL Flagship company of “The Times of India” group OOH & event management) 100% • Radio: India’s leading private FM TIML radio network - wi
Slide 12: Mirchi – Presence across Key Indian Cities
Mirchi – Presence across Key Indian Cities Ahmedabad Jallandhar Pune Aurangabad Kanpur Panjim Bangalore Kolhapur Raipur Bhopal Kolkata Rajkot Chennai Lucknow Surat Coimbatore Madurai Vadodara Delhi Mangalore Varanasi Hyderabad Mumbai Vijayawada Indore Nashik Vishakhapatnam Thiruvananthapuram Jabalpu
Slide 13: Innovative Content & Experience in managing diverse markets
Innovative Content & Experience in managing diverse markets • Innovative Content: – Strong relationships with Hindi, Tamil , Telugu, Kannada, Malayalam and Bengali film fraternity – Unique shows with participation of popular filmstars – Exclusive music breaks – Dedicated Bollywood shows – Mature res
Slide 14: Strong Brand
Strong Brand • Listeners: – As per RAM data, Mirchi is leader in Delhi, Mumbai, Kolkata and Bangalore put together with weekly listnership of 16.2 million (total market listership 24.2 million) – Leadership in all key markets – According to the Indian Readership Survey (IRS) Round 2 (R2) conducted b
Slide 15: FM Radio - Evolution
FM Radio - Evolution 2006- 07 • Multiple Frequency • License Tradability • Networking 1999-2005 • Radio ad spend share • Completion of Phase – - 8.5% II Licensing • Technology Before 1999 • Increased Competition developments • Phase – I Licensing • Improving profitability • Internet Radio • Limited
Slide 16: FM Radio – Draft Phase 3 Policy
FM Radio – Draft Phase 3 Policy • Additional channels in the same city to existing players – At least three players excluding AIR in any district – Maximum number of channels to a radio operator not more than 40% of total channels in the district • News and Current affairs on FM Radio may be permitt
Slide 17: Key Operating Highlights - Q3FY09
Key Operating Highlights - Q3FY09 Radio Business • Private FM radio industry degrew by approximately 7%-9% during the quarter • Mirchi retained market leadership with approximately 40-41% share of private FM radio industry • As per RAM data, Mirchi is leader in Delhi, Mumbai, Kolkata and Bangalore p
Slide 18: Times OOH: Creating a Pan India presence
Times OOH: Creating a Pan India presence Expanding across India • On high growth trajectory City Contracts Mumbai Mumbai International Airport Ltd (MIAL) – Largest organized player 1,400 bus queue shelters Patel Bridge – Formidable portfolio of OOH assets in 8 Delhi Delhi International Airport Ltd (
Slide 19: Milestones
Milestones • Introduced LEDs in India 2008 • Won Patel Bridge, Dwarka Metro, DND Flyover & 2007 Kolkata Billboards 2006 • Investment by Goldman TIM is incorporated and Sachs and Lehman business is transferred • Won Delhi and Mumbai Brothers from TIML • Won contract in four Aiports • Won Pune Billboa
Slide 20: Alternate Brand Solutions Ltd. "Business of Ideas"
Alternate Brand Solutions Ltd. “Business of Ideas” Creative Solutions Property Ownership Driving Sustainability “Preferred Corporate Partner” Innovation in execution 20
Slide 21: 360° Experience: Eventful Consumer Engagements
360° Experience: Eventful Consumer Engagements • Focus on owned properties – Ford Super Models 2008, India – Teen Tiva Beauty Pageant – Smart Living Awards – Mr. India World pageant • Managing large format events – Filmfare Awards – Miss India Pageant – IFFI Goa’08 – Pravasi Bharatiya Diwas’06 • Key
Slide 22: Key Operating Highlights – Q3 FY09
Key Operating Highlights – Q3 FY09 TIM and ABSL • Times Innovative Media Limited (“TIM”) entered into trading contracts with clients and carried sales promotions at Airport • Gross additions to customers base – Airports : 36 – Traditional : 92 • New revenue streams on track: Retail, Trading, Politic
Slide 23: Financial Highlights
Financial Highlights ENTERTAINMENT NETWORK (INDIA) LTD. 23 EXPERIENCE
Slide 24: Condensed Statement Of Operations
Condensed Statement Of Operations Standalone %age of %age of (Rs. Million) Q3FY09 Total Income Q3FY08 Total Income Growth (%) Income from Operations 597.4 99.6% 676.0 99.7% (11.6%) Other Operating Income 2.2 0.4% 2.0 0.3% 13.8% Total Income 599.7 100.0% 677.9 100.0% (11.5%) Operating Expenditure 416
Slide 25: Condensed Statement Of Operations
Condensed Statement Of Operations Standalone YTD Dec.31, %age of YTD Dec.31, %age of (Rs. Million) 2008 Total Income 2007 Total Income Growth (%) Income from Operations 1,780.7 99.6% 1,620.4 99.8% 9.9% Other Operating Income 6.6 0.4% 2.7 0.2% 141.6% Total Income 1,787.3 100.0% 1,623.2 100.0% 10.1% O
Slide 26: Q3 FY09 Performance Review
Q3 FY09 Performance Review (All comparisons with Q3 FY08) • On a like-to-like basis (10 legacy stations): - Total Income reported Rs. 445.6 million, down 15.7% - EBITDA down 9.1% to Rs 168.6 million - EBITDA margin stood at 37.9% vis-à-vis 35.1% • 22 new stations’ revenues grew by 3.3% – New station
Slide 27: Condensed Statement Of Operations
Condensed Statement Of Operations Consolidated %age of %age of (Rs. Million) Q3FY09 Total Income Q3FY08 Total Income Growth (%) Income from Operations 1,101.2 99.8% 1,348.0 99.9% (18.3%) Other Operating Income 2.2 0.2% 2.0 0.1% 13.8% Total Income 1,103.5 100.0% 1,350.0 100.0% (18.3%) Operating Expen
Slide 28: Condensed Statement Of Operations
Condensed Statement Of Operations Consolidated YTD Dec.31, %age of YTD Dec.31, %age of (Rs. Million) 2008 Total Income 2007 Total Income Growth (%) Income from Operations 3,266.7 99.8% 2,901.6 99.9% 12.6% Other Operating Income 6.6 0.2% 2.7 0.1% 141.6% Total Income 3,273.3 100.0% 2,904.3 100.0% 12.7
Slide 29: Consolidated Financial Performance
Consolidated Financial Performance Q3FY09 Inter Co. Rs. Million ENIL TIM ABSL Adjustments Consolidated Income from Operations 597.4 398.2 128.8 (23.3) 1,101.2 Other Operating Income 2.2 - 0.0 - 2.2 Total Income 599.7 398.2 128.8 (23.3) 1,103.5 Expenditure Production Expenses 52.7 17.8 90.7 (2.7) 158
Slide 30: Q3FY09 Performance Overview
Q3FY09 Performance Overview Consolidated (All comparisons with Q3 FY08) • Times OOH revenues down by 5.0% – Profitability under pressure due to DIAL and start-up phase of new projects – We surrendered two loss making contacts in New Delhi • Lower revenues in event management business due to the abse
Slide 31: Strategic Direction
Strategic Direction ENTERTAINMENT NETWORK (INDIA) LTD. 31 TIMES OOH’ ut, co) snameseahin expemtence
Slide 32: Strategic Direction
Strategic Direction Expand our footprint in radio broadcasting – Margin growth in existing stations – Horizontal Expansion - Additional licenses in new cities under Phase III Maintain market leadership in fast growing radio industry Focus on Out-of-Home media growth – Establish footprint in top 25 c
Slide 33: Strategic Direction (Cont'd)
Strategic Direction (Cont’d) Establish long-term client relationships for Experiential Marketing - Focus on multi-year contracts to drive revenue growth & margin expansion Focus on “owned” rather than “managed” events. Target areas where scale can be leveraged – Focus on big-ticket / higher margin s
Slide 34: THANK YOU
THANK YOU 34
Entertainment Network (India) — IDFC SSKI Emerging Stars Conference 2009 on 6ix