dish tv india limitedintroduction to dish tv india limited . asia-pacific’s largest . pioneer and...
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DISH TV INDIA LIMITED
Investor Presentation August 2013
A Associate
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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 Dish TV India Limited about its business and the industry and markets in which it operates.
These forward-looking statements include, without limitation, statements relating to revenues and earnings. The words “believe”, “anticipate”, “expect”, “estimate", "intend”, “project” and similar expressions are also intended to identify forward looking statements.
These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of the Company and are difficult to predict. Consequently, actual results could differ materially from those expressed or forecast in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks. Dish TV India Limited does not undertake to update these forward-looking statements to reflect events or circumstances that may arise after publication.
2
Presentation Flow
Introduction to Dish TV
Key Investment Highlights
Company Strategy and Outlook
Questions & Answers
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SECTION 1
Introduction to Dish TV
4
Introduction to Dish TV India Limited
Asia-Pacific’s largest
Pioneer and largest in India
Only pure-play listed Indian DTH player
Highest transponder capacity with maximum content offering
Promoted by a leading Indian Media Group—Essel Group
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Essel Group Structure
One of India's largest vertically integrated media and entertainment group, and also one of the leading producers, content aggregators and distributors of Indian programming globally
One of the largest producers and aggregators of Hindi programming in the world
Other Businesses
Essel Group
Media
Launched in 1992
One of India’s largest media and general TV entertainment network
Launched in 1992
Strong presence in national and regional news genre
Founded by Subhash Chandra
Group Market Cap: Rs 307.6 bn(1)
Source: Company websites, BSE, MPA Report 2013 Note: (1) Market capitalization as on 1st August, 2014
Market Cap: Rs 238 bn(1) Market Cap: Rs 2.8 bn(1)
Launched in 2005
Asia’s largest DTH service provider
Launched in 2006
One of India’s largest MSO, presence across 54 cities
Daily News & Analysis
Market Cap: Rs 53.2 bn(1) Market Cap: Rs 7.6 bn(1)
Launched in 2005
English broadsheet daily with presence across Mumbai, Bangalore, Pune, Ahmedabad, Jaipur & Indore
Content Distribution
Launched in 1976, Essel Group is one of India’s largest business houses, with a dominant presence in Media
Zee Entertainment Zee Media Corp. Ltd. Dish TV SITI Cable Network
• Packaging (Essel Propack) – Market Cap: Rs 6 bn(1)
• Theme Parks: Essel World and Water Kingdom
• Playwin: India’s first and largest online gaming company
• Cornership: Animation studio • Cyquator Technologies: IT Infrastructure
outsourcing • Infrastructure • Education • Precious Metals • Healthy Lifestyle & Wellness
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Leader in DTH service offering with
400+ channels and services.
Only DTH provider in India to be
serviced by two satellites.
Pan-India distribution network; ~
162,000 dealers across 8,600+ towns.
− Over 300+ sales personnel and
14 Regional offices.
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27%
20%
13% 7% 19%
14%
Dish TV Tata Sky Sun Direct Big TV Airtel Digital Videocon D2h
Market Share*
7
Business Overview
4.3 5.7
8.5 9.6
10.7
0 2 4 6 8
10 12
FY-09 FY-10 FY-11 FY-12 FY-13
Dish TV - Growing Subscriber Base
Source: Company websites, BSE, MPA Report 2013 Note: • Market share based on gross subscribers as on 30th June, 2013 as per market estimates. * Shareholding pattern as on 1st August, 2014.
64%
8% 13% 4%
11%
Promoters GDR
FII Fin. Inst., Banks & MF
Other Investors
Shareholding Pattern*
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Key Milestones and Performance
Oct 03: Received license to operate DTH Services
2003 2006 2007 2008 2009 2011 2010
Growth Trajectory Since Listing
Asia’s Largest DTH Provider Company Profile
Net Customer Base
Total Revenues
EBITDA (% margin)
Market Capitalization(3) ~ Rs 71.3 billion
First Indian DTH player
< 3.0 million
Rs 4,162 million
(Rs 2,095 million)
~ Rs 21.1 billion
2008(1) 2013(2)
Jan 09: Rights offering of shares for ~Rs. 1,139mn
Mar 09: EBITDA breakeven in Q4 FY09
Nov 09: Raised $100mn through GDRs to Apollo for 11% ownership
May 05: Launch of DTH Services
May 10: Launched HD services
Dec 10: Acquired additional transponders on Asiasat 5
July12: Net subscriber base crosses 10 million
Apr 04: Obtained teleport license from MIB
Source: Company filings, Company website, BSE, NSE, MPA Report 2013 Notes: (1) 2008 reflects FY 2008 year end results (2) Total Revenues and EBITDA for 2013 reflect FY2013 year end results. Customer base as of March 31, 2013 (3) 2008 market capitalization as on March 31, 2008; 2013 market capitalization as on March 31, 2013
Apr 07: Listing of Equity Shares on NSE and BSE
2004 2005 2012
10.7 million
Rs 21,668 million
Rs 5,795 million (26.7%)
2013
First full year of
Positive free cash flow
SECTION 2
Investment Highlights
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Key Investment Highlights
• Rapidly expanding industry further buoyed by digitization 1
• Superior and differentiated product and service offering combined with robust execution 2
• Growth with Profitability 3
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Growing Industry Television currently is and is expected to continue to remain the largest component of the Indian Media industry
Indian Media and Entertainment Industry Size
Key Indian Television Market Statistics Cable and DTH Revenues
Composition of Indian Media Industry
Television 45.2%
Print 28.7%
Film 12.8%
Others 13.4%
2011
Television 50.4%
Print 22.2%
Film 10.3%
Others 17.0%
2016E
13.2 15.0
16.9 19.6
22.8 26.5
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2011 2012E 2013E 2014E 2015E 2016E
6.6 9.7
1.4
4.2
0.0
5.0
10.0
15.0
2011 2016 E DTH Revenue Cable Revenue
239.1 247.0 254.7 262.3 269.7 276.9 283.9
140.9 147.9 154.9 161.8 168.5 175.0 181.4
113.4 122.5 133.0 144.0 154.2
163.5 171.8
0.0
50.0
100.0
150.0
200.0
250.0
300.0
2010 2011 2012E 2013E 2014E 2015E 2016E Total HHs TV HHs C&S HHs
(mn)
Source: M&E size & composition: FICCI-KPMG 2012 “Digital Dawn”,
: Indian television statistics and cable & DTH revenue: MPA Report 2013
Note: USD1 = INR 55
(US
$ bn
)
(US
$ bn
)
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The Digitization Push
Source: MPA Report 2013
100%
100%
100%
100%
100%
100%
99%
93%
69%
45%
0% 50% 100% 150%
Australia
Hong Kong
Malaysia
Singapore
New Zealand
Japan
Indonesia
Sri Lanka
Korea
India
• Inefficient Analog to addressable Digital.
• Transparency in cable to mitigate industry anomalies.
• Growth for digital platforms in a traditionally analog country.
• Four Phased conversion mandated to be completed by December 2014.
DTH – the synonym for Digital!
• Die-hard analog viewers in for a Digital surprise!
• Phase I - impressive acquisitions by DTH in an erstwhile analog market.
• Phase II - slow but promising.
• Phase III & IV – Key Target Markets with significant upside potential.
Digital penetration of total Pay-TV subscribers in India is amongst the lowest
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Superior Product & Service Offering
Number of channels
Channels Dish TV Tata Sky Airtel Sun Direct Reliance Digital Videocon
LINEAR 325 226 291 200 247 288
HD 42* 12 15 8 9 22
Features
• 25 channels and 17 services
• As on 30-June-2013
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Marquee Partnerships
Transponder / Satellite
State-of-the-art fully automated Broadcast Centre
Content Security and Customer Data Management
Middleware provider
Strategic partnerships with industry leaders to deliver the highest quality viewing experience
NSS-6, Asiasat 5
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Growth with Profitability
2,145
1,828
1,600
1,700
1,800
1,900
2,000
2,100
2,200
1QFY13 1QFY14
SAC (Rs.)
4,556
5,280
4,000
4,200
4,400
4,600
4,800
5,000
5,200
5,400
1QFY13 1QFY14
Subscription Revenue (Rs. Mn.)
28%
19%
13% 8% 19%
13%
Dish TV Tata Sky Sun Direct
Big TV Airtel Digital Videocon D2h
Market Share – FY 13*
29%
18%
14% 8% 19%
12%
Dish TV Tata Sky Sun Direct
Big TV Airtel Digital Videocon D2h
Market Share – FY 12*
650
-
100
200
300
400
500
600
700
FY 13
Free Cash Flow (Rs. Mn.)
156
165
150
155
160
165
170
1QFY13 1QFY14
ARPU (Rs.)
Note: * Based on gross subscribers as per market estimates. FY 12 data as on 31st March, 2012 & FY 13 data as on 31st March, 2013
SECTION 3
Strategic Focus Areas
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Minimizing Subsidy
1,640 1,840
1,999 2,249
-
500
1,000
1,500
2,000
2,500
Before Feb' 13 w.e.f. Feb' 13 (First hike)
w.e.f. Feb' 13 (Second hike)
w.e.f. July' 13
Offer Price Hike - SD
2,890
3,099
2,750
2,800
2,850
2,900
2,950
3,000
3,050
3,100
3,150
Before Feb' 13 w.e.f. Feb' 13
Offer Price Hike - HD
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Focus on eliminating subsidy in the medium term
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Reducing Investment per Subscriber…
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1,640 1,840
1,999 2,249
-
500
1,000
1,500
2,000
2,500
Before Feb 13 wef. 1st Feb 13 wef. 21st Feb 13 wef. 4th July 2014
STB Price Hike - SD
…to be further bolstered by price hikes
Note: Based on cumulative investments, including accumulated losses, per net subscriber
4,014
3,359 3,218 2,939
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
FY - 10 FY - 11 FY - 12 FY - 13
Investment per subscriber (Rs.)
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ARPU Expansion; leveraging industry rationalization
200
255
305
380
220
280
320
400
0
50
100
150
200
250
300
350
400
450
Family Super Gold Super World Super Platinum
Previous price Revised price (w.e.f. April'13)
Pack Price Hike - SD
385 460
560
399
499
599
0
100
200
300
400
500
600
700
Super HD World Super HD Premiere Super HD Royale
Previous price Revised price (w.e.f. April'13)
Pack Price Hike - HD
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Strategic Focus Areas
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Value Added Services; alternate and self funded revenue streams
Focus on sticky and quality additions than headline subscriber numbers
Make the most of industry rationalization and drive ARPUs
Aggressively continue to push HD acquisitions and add further innovations
Subsidy reduction to generate free cash and expedite break-even
Summary Financials
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Summarized P&L
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Rs. million
Quarter ended Quarter ended % Change Quarter ended % Change
June – 2013 March – 2013 Q o Q June – 2012 Y o Y
Operating revenues 5,784 5,554 4.1 5,200 11.2
Expenditure 4,567 4,354 4.9 3,644 25.3
EBITDA 1,217 1,200 1.4 1,556 (21.8)
EBITDA Margin (%) 21.0 21.6 - 29.9 -
Other Income 277 157 76.4 205 35.1
Depreciation 1,444 1,450 (0.4) 1,512 (4.5)
Financial expenses 354 343 3.2 572 (38.1)
Profit / (Loss) before tax (304) (436) - (323) -
Provision for tax 0 0 - 0 -
Profit / (Loss) after tax (304) (436) - (323) -
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Balance Sheet
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Rs. million FY 2013 (Audited) FY 2012 (Audited)
EQUITY AND LIABILITIES
Shareholders’ funds
(a) Share capital 1,065 1,064
(b) Reserves and surplus (2,621) (2,002)
(1,556) (939)
Non-current liabilities
(a) Long-term borrowings 8,460 10,193
(b) Other long term liabilities 1,504 1,798
(c) Long-term provisions 127 105
10,092 12,097
Current liabilities
(a) Short-term borrowings 300 1,950
(b) Trade payables 2,138 1,275
(c) Other current liabilities 14,027 7,063
(d) Short-term provisions 6,547 4,893
23,012 15,181
Total 31,548 26,340
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Balance Sheet (continued)
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Rs. million FY 2013 (Audited) FY 2012 (Audited) ASSETS Non-current assets
(a) Fixed assets (i) Tangible assets 14,273 14,160 (ii) Intangible assets 67 43 (iii) Capital work-in-progress 6,535 3,884
20,875 18,088 (b) Non-current investments - 1,500 (c) Long-term loans and advances 646 348 (d) Other non-current assets 97 69
743 1,917 Current assets
(a) Current investments 2,782 - (b) Inventories 86 69 (c) Trade receivables 304 286 (d) Cash and bank balances 3,645 3,919 (e) Short-term loans and advances 3,060 1,978 (f) Other current assets 53 83
9,929 6,335 Total 31,548 26,340
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Thank You