Siti Networks Limited · NSE:SITINET
Siti Networks — Q1 FY2019 Earnings Presentation
24 slides from Siti Networks's earnings presentation, 2018
Slide 1: SITI Networks Limited Q1FY19 Investor Presentation
SITI Networks Limited Q1FY19 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 2: 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 3: Q1FY19 highlights: EBITDA, subscription revenue and ARPU growth
Operating EBITDA leaps 2.5X to Rs.549 Mn; Operating EBITDA Margins jumps 2.1X to 17% Subscription Revenue surges 26% to Rs.2149 Mn over Q1FY18; Total Revenue1 up 15% to Rs.3,282 Mn ARPU rises 17% y-o-y; Collection efficiency surpasses 93% exit June’18; At 97% exit July’18 SITI reaches 11.7 Mn active
Slide 4: Industry Overview
Industry Overview siti NETWORKS
Slide 5: India Market Overview
India 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 64%
Slide 6: Company Overview
Company Overview siti NETWORKS
Slide 7: 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 7
Slide 8: SITI Networks: India's Leading Digital Network
SITI Networks India’s Leading Digital Network 11.7 Mn 580+ 3.56 Lakh 1.7 Mn Active Digital Locations High Definition Broadband Customers Footprint Customers Home Passes 55 Mn+ ~7% 2.5 Lakh Consumers TV Households Broadband Reached in India Customers 1st MSO launched in 1st MSO to give CRM 1st MSO li
Slide 9: 11.7 Mn Happy Households across the country
SITI Networks 11.7 Mn Happy Households across the country DAS Phase 1 1 1.7 Mn DAS Phase 2 2 1.5 Mn DAS Phase 3 3 3.9 Mn DAS Phase 4 4 4.7 Mn All metrics as of 30th June 2018| Does not include Analog
Slide 10: 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 11: On a Progressive Growth Path
SITI Networks On a Progressive Growth Path
Slide 12: 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 OTT service governance & Presence across 580 providers for creating compliance locations Broadband through Conax CAS value adds
Slide 13: 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 14: Sizeable Free Float & Institutional Ownership
SITI Networks Sizeable Free Float & Institutional Ownership 1.1% 3.9% Mutual Funds Others Key Investors 4.9% 73.4% Promoters Individuals Acacia Partners 12.3% FII’s Foreign Institutions 4.3% Shareholding Pattern Indian Companies 872 Mn Shares Domestic Institutions There has been fund infusion of INR
Slide 15: Technology Infrastructure
Technology Infrastructure Video & Broadband • 15 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 16: Strategy
Strategy GROUP
Slide 17: Video Strategy
SITI Networks Video Strategy • ARPU enhancement across phases • Identifying sweet spots to continuously add new customers • Increase HD Subscriber base • Background work to gear up for TRAI Tariff order is in progress • Up-sell HD and OTT • Increase Collection efficiency by further implementing Prep
Slide 18: Well Positioned to Benefit from Tariff Order
SITI Networks Well Positioned to Benefit from Tariff Order 06 01 Revenue Model for DPO Increase Consumer dependence ARPU’s to rise on systems / processes 05 02 Increase New Content Cost Transparency Tariff linked to & Adherence Subscription & Network Capacity Pay Channel A-la-Carte Carriage to Compl
Slide 19: Financials & Operating Metrics
Financials & Operating Metrics 19
Slide 20: A strong start to FY19
A strong start to FY19 Key Performance Indicators Vs Q1 FY18 Subscription revenue for Q1 FY19 at 26 % increase in Q1 FY19 Rs 2,149 mn (2,149mn vs 1,701mn) Operational expenses for FY18 at Negligible movement in Q1 Rs 2,733 mn FY19 (2,733mn vs 2,639 mn) EBITDA Margin (Excl. Activation) Q1 FY19 margin
Slide 21: Q1 FY19 Robust Performance
Q1 FY19 Robust Performance # 2.5x Jump in Operating EBITDA # 2.1 times leap in Operating EBITDA Margins 549 16.7% 515 16.2% 7.8% 223 Q1FY18 Q4FY18 Q1FY19 Q1FY18 Q4FY18 Q1FY19 • Operating EBITDA jumps from INR223 mn to INR549 mn • Operating EBITDA Margins expand by 892 bps at 16.7% All Numbers in Rs.
Slide 22: Q1 FY19: Video Business
Q1 FY19 : Video Business Surging Ahead # ~26% Growth in Video Subscription # Customer Adds up by 220,000 2,124 2,149 11.69 11.47 1,701 10.6 Q1FY18 Q4FY18 Q1FY19 Q1FY18 Q4FY18 Q1FY19 # Phase-wise ARPU (including tax) Increase • ARPU increased strongly by 17% YoY 124 124 130 • Phase 3&4 ARPUs (73% of
Slide 23: Q1 FY19: Broadband Business
Q1 FY19 : Broadband Business Consistent Improvement # Increase in Average Speed (Mbps) per DOCSIS # ARPU has been steady Customer 27 478 474 17 Q1FY18 Q1FY19 Q1FY18 Q1FY19 # Increase in DOCSIS Average Data (GB) Consumption • Broadband base at 250,000 102 • Blended Broadband ARPU increased 3% 77 Q-o-
Slide 24: Thank You
Thank You Ankit Saint Investor Relations, SITI Networks Limited +91-120-452-6754 Ankit.Saint@siti.esselgroup.com