Siti Networks Limited · NSE:SITINET
Siti Networks — Q3 FY2019 Earnings Presentation
27 slides from Siti Networks's earnings presentation, Feb 14, 2019
Slide 1: Cover letter to BSE and NSE on investor presentation
February 14, 2019 To, The General Manager The Manager Corporate Relationship Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeeboy Towers Plaza, 5th Floor, Plot no. C/1, G Block Dalal Street, Fort, Bandra Kurla Complex, Bandra (E) Mumbai- 400 001 Mumbai
Slide 2: SITI Networks Q3FY19 Investor Presentation
SITI Networks Limited Q3FY19 Investor Presentation Formerly known as SITI Cable Network Limited BSE : 532795 | NSE : SITINET | Bloomberg : SCNL:IN | Reuters : SITI.NS www.sitinetworks.com SITI Networks Limited – Confidential 1
Slide 3: Disclaimer
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 SITI Networks Limited (SITI Networks) about its business and the indust
Slide 4: SITI Networks Declares Strong Q3FY19 Results
SITI Networks Declares Strong Q3FY19 Results 3
Slide 5: SITI Networks Declares Robust Q3FY19 Results
SITI Networks Declares Robust Q3FY19 Results • Operating EBITDA leaps 1.9x y-o-y & 1.4x q-o-q to Rs.930 Mn • Operating EBITDA Margin jumps 1.7x y-o-y & 1.3x q-o-q to 24.5% • Subscription Revenue surges 21% y-o-y to Rs.2571 Mn • Total Revenue1 rises 12% y-o-y to Rs.3790 Mn • Digital Subscriber ARPU l
Slide 6: 9M Performance: Growth momentum continues
9M Performance: Growth momentum continues • Operating EBITDA leaps 2.2x to Rs.2,161 Mn • Operating EBITDA Margin jumps 937 bps to 20% • 9M EBITDA surpassed FY18 performance: Driven by strong subscription growth • Subscription Revenue surges ~24% to Rs.7,268 Mn • Total Revenue1 rises 16% to Rs.10,820
Slide 7: Industry Overview
Industry Overview sit NETWORKS
Slide 8: India C&S Market Overview
India C &S Market Overview TV Households are Growing Faster than the Universe 2016 2018 1% Terrestrial 10% Analog Cable 44% Digital Cable Total HH 286 Mn 297 Mn 13% Free Dish 197 Mn TV Households TV HH 183 Mn 197 Mn 31% Paid DTH Penetration of TV HH has gone up Cable (Digital + Analog) controls from
Slide 9: TV Homes Penetration
TV Homes Penetration Maximum Growth in East & South India | Small Towns & Rural are key drivers of Growth # Growth in TV Penetration # TV Owning HH (Millions) – Major Contributors 21% 24% North East Bihar / Jharkhand 12% Odisha 11% AP/Telangana 9% Karnataka Most Growth in TV Penetration in DAS Phase
Slide 10: Well Positioned to Benefit from Tariff Order
SITI Networks 06 01 Well Positioned to Benefit from Tariff Order Increase Consumer dependence ARPU’s to rise • Subscribers pay Phase neutral Minimum Rental of on systems / processes INR130 for 100 FTA SD channels; Can take additional FTA channels in bundles of 25 channels for INR20 each Subscription
Slide 11: Company Overview
Company Overview 10 sit NETWORKS
Slide 12: India's Leading Digital TV Network
• India’s Leading Digital TV Network • Present in 22+ States & UT across India • Footprint across 580+ locations • Delivering content to 55 Mn+ consumers 24/7 11
Slide 13: SITI Networks: India's Leading Digital TV Network
SITI Networks India’s Leading Digital TV Network 11.55 Mn 580+ 4.24 Lakh 1.7 Mn Active Digital Locations High Definition Broadband Customers Footprint Customers Home Passes 55 Mn+ ~7% 1.61 Lakh Consumers TV Households Broadband Reached in India Customers 1st MSO launched in 1st MSO to give CRM 1st M
Slide 14: 11.55 Mn Happy Households across the country
SITI Networks 11.55 Mn Happy Households across the country DAS Phase 1 1 1.6 Mn DAS Phase 2 2 1.5 Mn DAS Phase 3 3 3.8 Mn DAS Phase 4 4 4.7 Mn All metrics as of 31st Dec 2018| Does not include Analog
Slide 15: Present across 580+ locations
SITI Networks Present across 580+ locations Punjab Uttaranchal Haryana Uttar Pradesh Bihar Delhi Assam Nagaland Rajasthan Meghalaya Gujarat Jharkhand Madhya Pradesh West Bengal Maharashtra Odisha Chhattisgarh Karnataka Telangana Andhra Pradesh Kerala
Slide 16: Competitive Advantage
SITI Networks Competitive Advantage 01 02 03 04 05 India’s largest MSO Using latest MPEG4 OYC Subscriber In discussion with Robust corporate STBs Management System various service governance & Presence across 580 providers for creating compliance locations Broadband through Conax CAS value adds for
Slide 17: Promoter Group
Promoter Group Corporate Structure • Launched in 1926, the Parent Group (“Essel Group”) completed 90 years recently; One of India's leading business houses, with a dominant vertically integrated presence in Media and entertainment • Leading producer, aggregator and distributor of Indian programming
Slide 18: Sizeable Free Float & Institutional Ownership
SITI Networks Sizeable Free Float & Institutional Ownership 1.1% 3.9% Mutual Funds Others Key Investors 4.9% 72.2% Promoters Individuals 12.2% Foreign FII’s Institutions 5.6% Shareholding Pattern Indian Companies 872 Mn Shares Domestic Institutions There has been fund infusion of INR6800 Mn by Promo
Slide 19: Technology Infrastructure
Technology Infrastructure Video & Broadband • 11 Digital Headends; Intra-city OFC and Coax Network of ~33,000 Kms covering ~ 580 locations • Transport of Digital CATV signals on 1.2 Gbps links across the country; ~350 IP Points • Hybrid (DOCSIS+ GPON) Technology to offer Cable Broadband services Dig
Slide 20: Strategy
Strategy GROUP
Slide 21: SITI Networks Strategy
• Improve operational efficiencies and SITI Networks • harness inbuilt leverage Fungible teams for Cable and Video Strategy Broadband 03 • Improve extraction from low utilized IP based locations and 04 exiting non-profitable ones Cost • Increase Collection efficiency by further implementing Prepaid
Slide 22: Financials & Operating Metrics
Financials & Operating Metrics 21
Slide 23: The growth momentum continues in Q3FY19
The growth momentum continues in Q3FY19 Key Performance Indicators Vs Q3 FY18 Subscription revenue for Q3 FY19 at Rs 21% increase in Q3 FY19 2,571 mn (2,571mn vs 2,118mn) Operational expenses for Q3 FY19 at Expenses Flat in Q3 FY19 (2,860 mn Rs 2,860 mn vs 2,873 mn) Operating EBITDA Margin improved
Slide 24: Q3 FY19 Robust Performance
Q3 FY19 Robust Performance # 1.9x Jump in Operating EBITDA # 1.7x leap in Operating EBITDA Margins 2,161 24.5% 20.0% 14.8% 992 930 10.6% 498 FY18 FY19 FY18 FY19 Q3 9M Q3 9M # 12% Jump in Total Revenue1 10,820 9,355 • Q3FY19 Consolidated Revenues at Rs. 3,790 3,790 Mn 3,371 • 9M Operating EBITDA Marg
Slide 25: Q3 FY19: Video Business
Q3 FY19 : Video Business Surging Ahead # 21% Growth in Video Subscription (INR Mn) # Customer base stable 7,268 11.7 11.8 11.6 5,873 2,571 2,118 FY18 FY19 Q3 9M Q1FY19 Q2FY19 Q3FY19 # Phase-wise ARPU (Rs.) Increase 142 124 • 9M Subscription revenue grew 24% 100 103 83 • ARPU increased strongly by 19
Slide 26: Q3 FY19: Broadband Business
Q3 FY19 : Broadband Business Stable performance # ARPU has been relatively stable # Average Speed per Customer is steady 606 27 27 27 576 568 DOCSIS Q1FY19 Q2FY19 Q3FY19 Q1FY19 Q2FY19 Q3FY19 # Average Data Consumption continues to be high • Net Broadband base at 1.61 Lakhs 118 108 102 • Blended Broa
Slide 27: Thank You
Thank You Investor Relations, SITI Networks Limited +91-120-452-6754 Ankit.Saint@siti.esselgroup.com