Sun Tv Network Limited · NSE:SUNTV
Sun Tv Network — Antique Conference (February 2016)
37 slides from Sun Tv Network's conference presentation, Feb 16, 2016
Slide 1: The Sun never sets in the South!
The Sun never sets in the South ! FEBRUARY 16, 2016 1
Slide 2: Forward-looking statements 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 Sun TV Network Ltd. (STNL) about its business and the industry and markets in whic
Slide 3: Business segments: TV, FM radio, movies, IPL franchise
¡ Television Broadcasting ¡ FM Radio Broadcasting ¡ Movie Distribution/Production ¡ SunRisers – Hyderabad – IPL Franchise 3
Slide 4: Sun TV Network Ltd group structure
Sun TV Network Ltd (Broadcasting , Production, Entertainment) 97.78 % 59.44 % subsidiary subsidiary Kal Radio Ltd (Radio) South Asia FM Ltd (Radio) 18 FM Radio licenses 23 FM Radio licenses Focused on southern cities Focused on Northern, Eastern & Western parts of the country Divisions of STNL Strat
Slide 5: Channels by state and language
State / Language Andhra Pradesh Tamil Nadu / & Telangana / Karnataka / Kerala / Channels Tamil Telugu Kannada Malayalam General Entertainment Movies News Music Kids Comedy High DeJinition Life Action Rest of India 5
Slide 6: India Overview
India Overview
Slide 7: India the top investment destination in H1 2015
¡ India the top investment destination in H1 2015, beating China ¡ This is despite sharp decline in FDI into emerging markets ¡ FDI inHlow has more than doubled over H1 2014 i.e. a growing trend (Bn USD) FDI into India 35 30 25 20 15 10 5 0 H1 2014 H1 2015 Source: ft.com 7
Slide 8: Southern states key statistics
Tamil Nadu Andhra Pradesh + Telangana Area in Sq. Km (Rank): 130,058 (11) Area in Sq. Km (Rank): 275,045 (4) Population (Rank): 72 mn (7) Population (Rank): 84.6 mn (5) Urbanization%: 48% Urbanization%: 33% GDP in USD (Rank): 149 B (Top 5 states) GDP in USD (Rank): 145 B (Top 5 states) FDI InHlows (
Slide 9: Television Broadcasting in India
Television Broadcasting in India
Slide 10: Pay TV in India witnessing strong growth
¡ Pay TV in India witnessing strong growth and is likely to keep growing organically, since it is only at 60% penetration1 ¡ Bucking the stagnant / declining trend in linear pay TV in developed nations (India) 1 – Number of Pay TV households in India – 149 Mn, Number of total households in India a
Slide 11: TV advertising and distribution market 2015P-2019P
2015P (India) 2019P (India) v Accounts for ~ 40% of total ad-‐spends in India driven by Hindi & Regional ad-‐spends TV Advertising spends v Entertainment genre continues to be the TV Advertising spends largest ad spend driver followed by news and Rs 175 bn sports Rs 299 bn v Emergence of “Targe
Slide 12: Viewership share, ad market and subscription potential in South India
Enviable Viewership Share ¡ South Indian Channels accounted for ~30 -‐32 % share of total viewership Fast growing Ad market v Addressable ad market pegged at Rs ~60 billion, growing at a fast pace v South Indian Channels enjoy signiHicant share of total ad revenues v Regional TV in the South st
Slide 13: Households and channels by southern state
Tamil Nadu Andhra Pradesh & Telangana Total Households: 17.7 Mn Total Households: 20.9 Mn C&S Households (Penetration): 15.9 Mn (90%) C&S Households (Penetration): 14.8 Mn (71%) Major Active Tamil Channels: 42 Major Active Telugu Channels: 41 GEC: 16 GEC: 8 Movies: 6 Movies: 4 Music: 7 Music: 3 News
Slide 14: Sun TV Network's TV Broadcasting Business: Present
Sun TV Network’s TV Broadcasting Business: Present ‘ey : 14
Slide 15: Largest TV Network in South India
¡ Largest TV Network in South India; also the largest regional TV Network in India § Sun TV is the most watched channel in India today1 § Largest in South India by penetration, viewership & ad revenues2 § Dominant market share in each of the states § Airs assortment of Hiction and non-‐Hiction
Slide 16: Committed to staying ahead of the curve
¡ Committed to staying ahead of the curve § Innovation and leadership ▪ One of the Hirst Regional GE channels in country to adopt HD ▪ Forged early partnerships with OEMs to pre-‐load Sun TV app on their devices § Segmenting the addressable market, ahead of digitization ▪ Established presence ac
Slide 17: Advertising Revenue
¡ Advertising Revenue Ad market size Language (Rs bn) § TV remains the medium of choice Tamil 30.0 for large advertisers in India Telugu 20.0 Kannada 6.0 § Increasing trends of higher ad spends in the South, driven by high Malayalam 4.0 per-‐capita income in South India Total 60.0 § Leading to
Slide 18: Subscription revenue share from South India
Television C&S Over 60% share of Subscription revenue from South India Language Households households households (mn) accrues to Sun TV Network (mn) (mn) Tamil 17.7 16.4 15.9 Telugu 20.9 15.1 14.8 v DTH penetration is increasing at rapid pace Kannada 13.5 10.0 9.9 Malayalam 8.1 7.6 7.1 v Revenue o
Slide 19: Paid subscriber base in overseas markets
Paid subscriber base of over ~0.6 mn in overseas markets Rogers Cable ,Bell & Channel Live -‐ IPTV Sun TV Network Europe Limited, Yupp TV Echostar –Dish, Channel Live , IPTV, Yupp TV, VU Clip, Bom TV, Vision Myanmar – Shwe Media, Google Ireland UAE – Pehla Thanlwin Media Malaysia -‐Measat Sri Lank
Slide 20: Sun TV Network's TV Broadcasting Business: Future
Sun TV Network’s TV Broadcasting Business: Future ‘ey : 20
Slide 21: Twin opportunities: digitization and growth in Pay TV ARPUs
¡ In mature South Indian Markets, twin opportunities: Digitization + Growth in Pay TV ARPUs § Digitization will grow the addressable TV audience, improving subscription revenue realization § India’s Pay TV ARPU among lowest in the world; Increase in ARPUs will further reduce dependence on adverti
Slide 22: Mandated digitization timelines in India
¡ Government of India has mandated digitization of TV distribution systems in India with the following timelines Deadline for Estimated homes Phase Cities Covered digitisation Total South 4 Metros (New Delhi, ~ 12 mn Chennai ~ 2 mn 1 Mumbai, Kolkata, Chennai) 30/10/2012 38 Cities Bangalore /Mysore/
Slide 23: FM Radio Broadcasting
F M Radio Broadcasting
Slide 24: FM radio subsidiaries and stations
¡ Two subsidiaries § Kal Radio Limited and South Asia FM Limited ¡ 46 stations operational § 7 stations under Brand Suryan FM in Tamil Nadu § 39 stations under Brand Red FM in the Rest of India ¡ Strong Revenues from the Metro stations § Metro stations account for 50% of total Radio Revenues
Slide 25: India's Largest FM Radio Network
India’s Largest FM Radio Network With a Pan India Footprint rae ‘aj amundri | aywada Thiruvananthapuram ° a 25
Slide 26: FM stations by region
Tamil Nadu, Karnataka & Andhra Pradesh & West -‐ 8 North & East -‐ 16 Telangana -‐ 13 Kerala -‐ 9 • Chennai • Bangalore • Ahmedabad • Allahabad • Cochin • Aurangabad • Asansol • Coimbatore • Bhopal • Hyderabad • Gulbarga • Jaipur • Bhubaneswar • Madurai • Kannur • Mumbai • Delhi • Pondicherry •
Slide 27: Radio growth drivers and regulatory reforms
¡ Increasing share of Radio in total ad pie § Current share of Radio in total ad pie at ~ 4.5% compared to global average of ~8% ¡ Cost effective medium § SMEs and local advertisers to drive growth ¡ Share of regional advertisers to increase § Share to increase from current ~ 40% to global ave
Slide 28: Business leadership summary
¡ TV Broadcasting § India’s No 1 TV Broadcaster ¡ F M Radio Broadcasting § India’s largest private FM player ¡ Movie Distribution / Production § One of India’s largest Corporate Movie Distribution / Production houses ¡ SunRisers – Hyderabad – IPL Franchise § An opportunity to blend the India
Slide 29: Financials
Financials
Slide 30: Standalone financial results FY10-FY15
(Rs Crores) FY 15 FY 14 FY13 FY 12 FY 11 FY 10 Advertising Revenue 1,136.09 1,067.04 1,049.67 945.42 970.20 788.72 Telecast Fees 114.64 127.34 143.61 163.96 153.74 134.28 Subscription (Analogue + DTH + Overseas) 875.72 769.45 615.10 579.93 571.26 395.84 Other Revenues 117.17 132.95 9.24 68.06 228.51
Slide 31: Revenues, EBITDA, PAT, ROCE and RONW
EBITDA (Rs. bn) Total Revenues (Rs bn) 81 (%) 20.0 80 80 81 25.0 18.2 22.4 CAGR ~ 9.97 % 17.6 21.0 15.0 76 20.0 19.2 15.6 76 14.0 11.1 15.0 10.0 14.0 72 13.8 70 10.0 14.6 71 5.0 5.0 16.1 0.0 66 0.0 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 EBITDA EBITDA Margin (RHS) (Rs bn) Profit
Slide 32: Consolidated financial results FY10-FY15
(Rs Crores) FY 15 FY 14 FY 13 FY 12 FY 11 FY 10 Advertising Revenue 1,289.35 1,194.38 1,155.46 1,029.42 1,053.18 844.96 Telecast Fees 114.64 127.34 143.61 163.96 153.74 134.28 Subscription (Analogue + DTH + Overseas) 875.72 769.45 615.10 587.20 578.03 397.55 Other Revenues 115.67 132.45 8.83 66.14 2
Slide 33: Consolidated revenues, EBITDA, PAT, ROCE and RONW
EBITDA (Rs. bn) Total Revenues (Rs bn) (%) 20.0 81 30.0 78 15.0 77 25.0 75 76 24.0 15.8 20.0 22.2 73 20.1 10.0 18.5 19.2 10.9 14.1 15.0 70 14.5 71 10.0 5.0 14.0 68 16.8 5.0 15.1 0.0 66 0.0 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 EBITDA EBITDA Margin (RHS) (Rs bn) Profit after Tax
Slide 34: Nine-month results December
(Rs Crores) 31 Dec 15 31 Dec 14 Advertising Revenue 923.61 832.25 Telecast Fees 84.09 86.90 Subscription (Cable/ DTH /Intl) 706.12 649.41 Other Revenues excl. IPL 22.52 12.44 Revenues from IPL 96.96 114.04 Total Revenues 1,833.30 1,695.04 Total Income 1,900.40 1,759.53 * * Excl. IPL Incl. IPL Excl.
Slide 35: Income and PAT growth FY08-FY15
Total Income grew at CAGR of 14.10 % Advertising Income grew at CAGR of 13.56% 970.20 945.42 1.049.70 1,067.04 1,136.09 1.970.50 2,175.99 2,331.45 788.72 (Rs. Crs) 1,831.57 1,872.60 (Rs. Crs) 1.437.52 572.76 1,091.52 466.59 925.99 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY08 FY09 FY10 FY11 FY12 FY13
Slide 36: PAT and dividend
Rs. Crs PAT Dividend 772.2 716.9 737.2 694.7 683.3 72% 567.4 63% 64% 61% 529.3 52% 437.1 435.1 435.7 438.0 61% 401.5 344.9 26% 115.3 FY09 FY10 FY11 FY12 FY13 FY14 FY15 36
Slide 37: February 16, 2016
FEBRUARY 16, 2016 37