Music Broadcast Ltd. · NSE:RADIOCITY
Music Broadcast — Q1 FY2018 Earnings Presentation
44 slides from Music Broadcast's earnings presentation, Jul 31, 2017
Slide 1: Radio City cover letter to exchanges
FM BOLE TOH RAG RAG MEIN DAUDE CITY. | @zemeryg PAA AGRAN INITIATIVE July 31, 2017 1. | National Stock Exchange of India Ltd. | 2. | BSE Limited Exchange Plaza, 5% Floor Corporate Relationship Department Plot No. C/1, G Block; Bandra (East) Phiroze Jeejeebhoy Towers Mumbai 400 051 Dalal Street; Fort
Slide 2: Music Broadcast Limited Investor Presentation July 2017
Music Broadcast Limited Investor Presentation July 2017
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: Q1FY18 Performance
it: Q1FY18 Performance BAG RAG MEIN DAUDE CITY. | “etedieietddd ON IAGRAN INITIATIVE
Slide 5: Achievements for the Quarter
Achievements for the Quarter Q1FY18 Financial Radio City increased its market share by ~2% in Q1FY18 in terms of Highlights volume as compared to Q1FY17 “Great Place To Work” Study Consistent Revenue Continues to be in top 50 companies for the 6th year growth of 12% (yoy) No 1 rank amongst M
Slide 6: Key Highlights for the Quarter
Key Highlights for the Quarter Revenues EBITDA PAT In Rs. Crs In Rs. Crs In Rs. Crs +12% +16% +42% 70 22 11 63 19 8 Q1FY17 Q1FY18 Q1FY17 Q1FY18 Q1FY17 Q1FY18 11 new stations operational for EBITDA Margin PAT Margin of entire quarter of 32% 15% 5
Slide 7: Utilizations in Line with Annual Guidance
Utilizations in Line with Annual Guidance 39 11 Average Inventory 28 5 out of 11 New Availability is Stations: 15 min for 18 hrs. >30% utilization Legacy Stations Phase III Stations Total Stations Rate Hike in 12 out of 28 Legacy Stations Utilization 70-80% 25-35% 65-75% Our Strategy of Profitable G
Slide 8: Market Share Movement
Market Share Movement Industry de-grew by 5%, with Radio Radio City gained 2% in terms of City registering a growth of 4% market share and now has a share of 22% for Q1FY18 Volume Growth Volume Share 10% 5% 4% Operators Q1 FY17 Q1 FY18 Change 0% -5% Radio City 20% 22% 2% -5% -10% -7% -15% Peer 1 23%
Slide 9: Profit and Loss – Quarterly
Profit and Loss – Quarterly In Rs. Crs Q1FY18 Q1FY17 YoY Q4FY17 QoQ FY17 Revenue 70.3 62.8 12% 66.6 6% 271.4 Licenses Fees 5.2 4.7 4.8 19.2 Employee Expenses 17.1 15.5 17.0 65.1 Other Expenses 25.8 23.5 28.1 95.9 EBITDA 22.2 19.1 16% 16.6 34% 91.2 EBITDA Margin 31.5% 30.5% 24.9% 33.6% Other Income 4
Slide 10: Radio City Rag Rag mein Leadership
Radio City Rag Rag mein LEADERSHIP 9
Slide 11: MBL at a Glance
MBL at a Glance Over 15 Years of Experience in the Radio Industry ▪ 1st Private FM Radio Broadcaster in India 11 Cities acquired in Phase III ▪ Presence in 12 out of the top 15 cities of India by population ▪ Presence in the Internet Radio Space with radiocity.in – 43 web radio stations in 52.5 mn L
Slide 12: Leadership overview: Industry, Product, Organizational
Rag Rag mein LEADERSHIP Industry Product Organizational Leadership Leadership Leadership Leadership Position in Large Markets Right Shows : Right Time Internal Operational Systems & HR 1. 1. 1. Received 31 awards in 2016 and 40 2. Radio City - No. 1 Station by AZ Research 2. New Initiatives awards a
Slide 13: Industry Leadership
it: Industry Leadership BAG RAG MEIN DAUDE CITY. | “gehededleehel ON IAGRAN INITIATIVE
Slide 14: Leadership Position in Large Markets
Leadership Position in Large Markets Listenership Across Listenership in Mumbai Listenership in Delhi Listenership in Bengaluru Markets In mn In mn In mn In mn 52.5 8.4 9.2 4.7 8.2 42.1 3.7 6.4 7.2 5.9 3.2 5.5 5.8 5.5 2.7 27.2 2.3 22.7 15.1 2.0 9.1 Radio Mirchi Fever Radio City Radio One Big FM Red
Slide 15: Leadership in Mumbai and Bengaluru
Leadership in Mumbai and Bengaluru Listenership Market Share Data Mumbai Bengaluru 20 30 16 25 12 20 % Share % Share 15 8 10 4 5 0 0 Year 2013 Year 2014 Year 2015 Year 2016 YTD* Year 2013 Year 2014 Year 2015 Year 2016 YTD* Mirchi One Radio City Red Big Mirchi One Radio City Big Fever Ishq Nasha Redt
Slide 16: Leadership in Advertisement Volume
Leadership in Advertisement Volume For FY17 Advertising Volume 12.1% Government Real Estate BFSI 6 Year CAGR (FY11-17) 9.7% 9.0% 9.1% 8.3% 4.0% I 10% 8% N 16% D Radiocity Radio Big FM Red/S FM Others Industry U Mirchi mn Seconds (FY17) S T R Others Y Retail E-commerce 74.9 75.4 34.2 63.2 94.6 342.3
Slide 17: Product Leadership
it: Product Leadership BAG RAG MEIN DAUDE CITY, | eget PRA IAGRAN INITIATIVE
Slide 18: Right Shows : Right Time
Right Shows : Right Time Ranked 1 in terms of “Top of Mind” Brand Recall in Major cities of India Focus on localization of the content best suited to each city’s taste, leading to higher retention of listenership Award winning sparkler( IRF Rag Rag Mein Daude City brand The award-winning show 2017)
Slide 19: New Initiatives
New Initiatives After a stupendous response last year, Gig City Season 2 got bigger and better with a talented line up Radio City’s Curated playlists will be of artists like KK, Kailash Kher, Shankar Mahadevan available to the Worldwide subscribers of (MCMM), Benny Dayal and Mika who got 5.25 crore
Slide 20: Right Markets : Right Price
Right Markets : Right Price Mumbai, Delhi, Bangalore, Chennai, Pune, Phase I & Hyderabad, Ahmedabad, Surat, Nagpur, Lucknow, Jaipur, Baroda, Coimbatore, Vizag, Ahmednagar, Phase II Sholapur, Sangli, Nanded, Jalgaon and Akola Stations Jalandhar Patiala Hissar Karnal Bareilly Bikaner Delhi Agra Luckno
Slide 21: New Age Digital Media
New Age Digital Media 24x7 online radio with live RJ hosted shows The ‘Radio city’ mobile app plays 25+ radio stations & 350+ playlists in 8 languages has a total of 82,000+ downloads June 2017 43 Radio stations & 350+ playlists have generated a listenership of 35 Million Also ranked No.1 in Faceboo
Slide 22: Organizational Leadership
it: Organizational BAG RAG MEIN Leadership DAUDE CITY, | “ecaeeldedecle ON IAGRAN INITIATIVE
Slide 23: Internal Operational Systems & HR
Internal Operational Systems & HR People Front End of Content and Practices Digital Curve and Tech Changes Communication Expertise Using independent agencies such as AZ Research, RAM, AirCheck Amongst the first radio stations and Ormax Media to understand Good people practices have to have networkin
Slide 24: Awards & Accolades
Awards & Accolades 6 Awards 17 Awards 20 Awards 7 Awards Great Place to Work ▪ Continues to be top 50 companies overall in India in 2016-17 2 Awards ▪ No.1 rank in M&E companies in GPTW in Shortlisted 2 Awards 2017, 2015 & 2014 Grand Prix at ▪ Ranked 1st in Great Places to Work for Spikes Asia Speci
Slide 25: About the Industry and Organization
About the Industry and Organization
Slide 26: Industry Potential
it: Industry Potential BAG RAG MEIN DAUDE CITY, | eget PRA IAGRAN INITIATIVE
Slide 27: Radio Industry : Growth Ready
Radio Industry : Growth Ready Media Industry Radio Industry Highlights of Phase III Policy In Rs. bn In Rs. bn CAGR 14% CAGR 16% Government has Liberalized Regulations 2,419 48 Multiple frequencies: An operator under Phase III Policy regime may own up to 40% of channels in the same city subject to t
Slide 28: Mega Industry Trends
Mega Industry Trends Increase in number of frequencies ✓ Increased frequencies from 243 to 405 post Phase III, Batch 2 Increase in the wallet share ✓ Radio’s share in the overall advertising revenue ranges ~ 4-5% which is lower than many developed countries where the share is ~ 7-10% Deepening Penet
Slide 29: Strengthening Leadership 2016-17
Strengthening Leadership 2016-17
Slide 30: Disciplined Capital Allocation
Disciplined Capital Allocation Phase II Phase III 26 40Cost Set Up 86 towns 302 towns Industry 63 New Licenses 63 for Phase III 60% 62% of India’s of India’s Population having Population having FM Radio FM Radio Migration Fees for Phase I & II ✓ Capex towards New Stations completed 237 Stations and2
Slide 31: Portfolio Optimization
Portfolio Optimization 39 11 Average Inventory 28 Availability is 15 min for 18 hrs. Legacy Stations Phase III Stations Total Stations Average Utilization 65-75% 6% 50-60% Annualized Average Utilization 65-75% 20-30% 60-70% Top 4: 500-1,200 Top 4: 500-1,200 Average Realization Levels (Rs./10 sec) Ne
Slide 32: Operating Leverage to Play Out
Operating Leverage to Play Out EBITDA Analysis for FY2017 Future Outlook Revenue 271 Increase in Effective Rates in Legacy Stations Employee 36% Marketing 13% ✓ ~ 85% of Total Operating Cost are Fixed in nature Increase in Utilization in Radio Programming 6% Mantra and Phase III Stations ✓ Increment
Slide 33: Headroom for Growth
Headroom for Growth Consolidated Debt Objects of the Issue: In Rs. Crs ✓ Redemption of Listed NCDs – Rs. 200 Crs 291 223 ✓ Early redemption of the JPL NCDs and repayment/pre- payment of JPL ICDs – Rs. 98 Crs 150 ✓ General Corporate Purposes – ~Rs. 84 Crs 2015 2016 2017 Net Debt to Equity (x) Proceed
Slide 34: Experienced Team with Strong Parentage
Experienced Team with Strong Parentage
Slide 35: Experienced Board of Directors
Experienced Board of Directors Vijay Tandon : Chairman & Independent Director Holds a Bachelor’s degree in Arts from the University of Delhi. He is a Fellow of the Institute of Chartered Accountants of India. As a management consultant, he has been associated with several consulting services in sect
Slide 36: Strong Management Team
Strong Management Team Abraham Thomas : CEO Holds Bachelor’s degree in Pharmacy from the University of Bombay and a Master’s diploma in Business Administration from the Institute of Management, Development and Research, Pune. He is also on the board of directors of One Network and Media Agnos. Prior
Slide 37: Financials for FY16-17
it: Financials for FY16-17 BAG RAG MEIN DAUDE CITY, | eget PRA IAGRAN INITIATIVE
Slide 38: Performance Highlights
Performance Highlights Revenues EBITDA In Rs. Crs +20% In Rs. Crs +17% 271 91 225 78 201 62 2015 2016 2017 2015 2016 2017 PAT EBITDA Margins In Rs. Crs 47 +33% 34.7% 37 28 33.6% 31.0% 2015 2016 2017 2015 2016* 2017 FY16 & 17 financials are as per IndAS 37 *Includes Exceptional Expenses of Rs. 13.58
Slide 39: Profit and Loss – Annual
Profit and Loss – Annual In Rs. Crs FY17 FY16 YoY Revenue 271.4 225.5 20% Licenses Fees 19.2 17.2 Employee Expenses 65.1 51.1 Advertising Expense 24.0 20.6 Other Expenses 71.9 58.4 EBITDA 91.3 78.1 17% EBITDA Margin 33.6% 34.7% Other Income 4.4 14.7 Depreciation/Amortization 19.7 16.7 EBIT 76.0 76.2
Slide 40: Balance Sheet
Balance Sheet Assets (In Crs) FY17 FY16 Liabilities (In Crs) FY17 FY16 Total Non Current Assets 361.9 362.2 Shareholders Fund 548.1 210.0 Fixed Assets 311.6 296.0 Share Capital 57.1 42.0 Tangible Assets 35.3 8.2 Intangible Assets 276.3 222.1 Other Equity 491.1 168.0 Intangible Assets Under Developme
Slide 41: Benefiting from Profitable Growth Strategy
Benefiting from Profitable Growth Strategy ~36% for 28 CAPEX for all 11 Net Cash of Stations Stations done Rs. 145 Crs Maintenance ~34% for 39 Improvement in CAPEX stations Debtor days Margins sustained Rs. ~4-7 Crs despite investment in Prudent Investments Financial Flexibility 11 stations for Prof
Slide 42: Looking Ahead
it: Looking Ahead BAG RAG MEIN DAUDE CITY, | eget PRA IAGRAN INITIATIVE
Slide 43: Key Takeaways
Key Takeaways Industry Growth Strong Parentage High Entry Barriers Radio Industry is estimated JPL Group Relationships, Radio Industry is protected to grow at a CAGR 16% Experienced Team, by Licenses for 15 Years over the next 5 Years Knowledge of Local Markets thereby restricting the & Credibility
Slide 44: 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 Ms. Payal Sheth Email: payal.sheth@sgapl.net www.sgapl.net