Hum Network Limited · PSX:HUMNL
Hum Network — Investor Presentation (2019)
26 slides from Hum Network's investor presentation, 2019
Slide 1: Hum Network Limited Corporate Briefing Session 2019
HUM NETWORK LIMITED CORPORATE BRIEFING SESSION 2019
Slide 2: Index
INDEX 2 1. Vision and Mission 2. Company Structure 3. Brands Overview 4. On Ground Events 5. Digital Media Division 6. Hum Network Foot print 7. Global Reach and Developments 8. Content Syndication 9. Industry Overview 10. Profitability Chart 11. Financial Highlights 12. Financial Analysis 13. Futur
Slide 3: Vision and Mission
1. 3 VISION Inspired by the finest cultural, corporate and creative values to present content which entertains and enriches audiences. MISSION To enable the origination of outstanding content on subjects of interest and relevance to a range of audiences while using the best professional practices an
Slide 4: Company Structure
2. COMPANY STRUCTURE 4 HUM MART Pvt. Ltd Online grocery store recently introduced electronic appliances & mobiles. Skyline Publications (Pvt.) Ltd. Publishes Magazines and catalogues HUM Network Ltd including cook books. HUM Network UK Advertisement Rev Production Rev Ltd Digital Rev Adverti
Slide 5: Brands Overview
3. BRANDS OVERVIEW 5 MASALA TV HUM SITARAY 2006 2013 HUM NEWS 2018 HUM FILMS 2014 HUM TV 2005 HUM MART 2018 2009 2007 2014
Slide 6: Hum Films
3.1 HUM FILMS 6 Under the banner of HUM Films, Parwaaz Hai Junoon was the first Pakistani movie to launch in China & Saudi Arabia. Superstar turned out to b a massive hit in Pakistan as well as globally. HUM FILMS-TAKING INITIATIVES PAKISTAN INTERNATION FILM FESTIVAL (PIFF) After the success of PIFF
Slide 7: Hum Mart
3.2 HUM MART 7 Currently HUM Network has made a mark with a new business venture in e-commerce Online shopping platform which offers hassle free Pharmacy, Fashion & Electronics Shopping shopping experience. Karachi With a well designed website, application and express delivery, HUM Mart has created
Slide 8: E-Commerce Opportunity
3.2.1E- COMMERCE OPPORTUNITY 8 56.1 M mobile broadband subscribers 27.2% mobile 218 M 58.33 M broadband BROADBAND penetration TOTAL POPULATION SUBSCRIBERS Increase in budget Establishment of friendly 3G/4G supported national e- smartphones in Pak commerce causing boom in internet gateway by SBP pene
Slide 9: Hum News
3.3 HUM NEWS HUM News successfully launched at 18:00 on 11 May 2018. Aims to set high standards of modern journalism, without promoting sensationalism. According to recent survey of Roshan Pakistan, HUM News is the 3rd most impactful channel. HUM News has its own website: www.humnews.pk . Facebook p
Slide 10: On Ground Events
4. ON GROUND EVENTS 10 Over the last 7years HNL has played a key role in supporting and developing the fashion and music industry in Pakistan. HNL is the first broadcast network to have independently organized special events like award shows, game shows, reality shows, concerts etc. both locally as
Slide 11: Digital Media Division
5. DIGITAL MEDIA DIVISION Digital advertising overtook TV ad spend globally and this is likely to positively impact HUM digital media division. Source: IAB,s Digital Ad Revenue Report We are premier Pakistani entertainment network to have its content available on Netflix and Iflix Strong footholds o
Slide 12: Hum Network Foot Print
HUM NETWORK FOOT PRINT UK & EUROPE sky USA dish Platform: SKY/Virigin Media Platform: Dish Network/Sling i Channel: SKY-751/Virigin Media- (g>,<, [Channel Dish-687/Dish-690/ sling 833/ Dish-693/sling.com A : Rogers/Bell/Cogeco Channel: Rogers-688/Bel|-830/ Cogeco-102 Orocers Bel] «2 coseco =< revs M
Slide 13: Global Reach & Developments
7. GLOBAL REACH & DEVELOPMENTS 13 Presence in MENA, Asia Pacific, Europe and HUM Masala has established itself as leading North America South Asian Channel in the region. Serves South Asian Diaspora as well as local Impressive response to our content in India due audience in select countries to same
Slide 14: Reaching Heights Internationally
7.1 REACHING HEIGHTS INTERNATIONALLY 14 Hum Europe reigning at the top, leaving giants like Star Plus behind in ratings. Hum Masala delivering a sterling performance in the U.K by serving to the vast S. Asian population residing over there.
Slide 15: Content Syndication
8. CONTENT SYNDICATION 15 To increase its international footprint, HNL continued to expand its content syndication. During the year, Suno Chanda and Ishq Tamasha was dubbed in Arabic and aired on MBC In the past HUM TVs dramas have been aired on Zee Zindagi, Rishtey, Colors, TV3.
Slide 16: Industry Overview
9. INDUSTRY OVERVIEW AD REVENUE SPEND BREAK-UP (Latest data available Dec. 2018) CHANNEL 2017-18 2016-17 Revenue Rs. (billion) Rs. (billion) 2017-2018 ARY DIGITAL 10% ARY DIGITAL 3.96 4.2 HUM TV 3.84 4.3 GEO NEWS 2.6 3.5 HUM TV 10% GEO ENTERTAINMENT 2.4 2.9 OTHERS 32% DUNYA NEWS 1.68 1.4 PTV HOME 1.
Slide 17: Total Advertising Revenue per Medium
9.1 TOTAL ADVERTISING REVENUE PER MEDIUM- 17 TWO YEAR COMPARISON 45 42 40 38 35 30 Rs. In billion 25 20 19.5 20 15 11.8 10 8 7 6 5.5 5 5 3 2.5 0.4 0.6 0 TV PRINT OOH BRAND RADIO DIGITAL CINEMA ACTIVATION FY 2016-2017 FY 2017-2018 Source: Aurora fact file 2018
Slide 18: Year 2018-2019
9.2 YEAR 2018-2019 18 There is a major shift in total advertisement spend from TV to Digital medium globally. The Ad Revenue shrunk by 30% - 35% owing to economic instability due to dwindling foreign exchange reserves, low exports, high inflation, growing fiscal deficit and current account deficit.
Slide 19: Genre Wise Industry Review
19 9.3 GENRE WISE – INDUSTRY REVIEW Music, 2% Religious, 2% food, 1% Regional, 2% 2018-2019 2017-2018 Kids, 4% Movie, 2% Religious, 2% Food, 1% Sports, 7% Regional, 2% Music, 2% Kids, 5% Pakistani ENT, 50% Movie, 3% Sports, 5% News, 29% Pakistani ENT, 47% News Gen, 27% Indian ENT, 2% Indian ENT, 5%
Slide 20: Profitability Chart
10. PROFITABILITY CHART 20 Net Revenue 12 Years CAGR Net PAT CAGR 5,000 CAGR 18% 15% (2007-2019) (2007-2019) 4,000 3,000 2,000 1,000 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (1,000) Revenue PAT (Rs. in million)
Slide 21: Financial Highlights
11. FINANCIAL HIGHLIGHTS 21 Revenue OL,NL Year to Year Comparison (Unit: PKRmn) (Unit: PKRmn) (Unit: PKRmn) 1,000.00 0 5000 -20 01Q19 02Q19 03Q19 04Q19 800.00 4000 -40 600.00 -60 3000 400.00 -80 2000 200.00 -100 - -120 1000 01Q19 02Q19 03Q19 04Q19 -140 0 Advertisement Revenue Production Revenue -160
Slide 22: Financial Analysis
12. FINANCIAL ANALYSIS 22 REVENUE BREAKDOWN FY 2018 FY 2019 Revenue breakdown Rs. 4,746 mn Revenue breakdown Rs. 4,189 mn 9% 3% 0.4% 0.5% Advertisement 3% 5% Revenue 2% 3% 3% Other Income 5% Production Revenue Digital Revenue Subscription Income 80% Film Distribution 86% Refer our website: https://
Slide 23: Cost Breakdown
12.1 COST BREAKDOWN 23 FY 2018 FY 2019 Cost breakdown Rs. 4,535 mn Cost breakdown Rs. 4,208 mn Transmission Costs 3% 2% 4% 4% 2% 4% 2% 2% Cost of acquisition & production of content Utilities and Rents 27% Other 27% Finance Costs 46% 49% Salaries & benefits 3% Travelling 0.8% 13% 8% Advertisement 2%
Slide 24: Future Prospects
13. FUTURE PROSPECTS 24 Acquisition HUM Mart HUM Films of MD •The Company is exploring Expansion Productions the feasibility of, and enter Has been launched in Karachi initially and With the growth in the film into discussions for, the focused in grocery, have industry, improving cinema potential ac
Slide 25: Future Prospects Continued
13.1 FUTURE PROSPECTS CONTINUED… 25 Subscription HUM News •According to recent Based survey of TV Spend Model This model is a payment Share, there is a structure that allows customer prospect for new or organization to purchase or market players in subscribe to a vendors IT News, Kids and Sports ser
Slide 26: Thank You
26 THANK YOU