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Investors Presentation
February 2007
2
Certain statements in this release concerning our future growth prospects are forward-looking
statements, which involve a number of risks, and uncertainties that could cause actual results to
differ materially from those in such forward-looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and uncertainties regarding fluctuations in
earnings, our ability to manage growth, intense competition in our business segments, change in
governmental policies, political instability, legal restrictions on raising capital, and unauthorized use of
our intellectual property and general economic conditions affecting our industry. ENIL may, from time
to time, make additional written and oral forward looking statements, including our reports to
shareholders. The Company does not undertake to update any forward-looking statement that may
be made from time to time by or on behalf of the company.
Disclaimer
3
Presentation Path
• Indian Media & Ad Industry
• ENIL & TIMPL Overview
• Financial Highlights
• Business Outlook and Strategy
4
Indian Media & Ad Industry
5
• Nominal GDP expected to grow at 13% - 14% p.a.
Ad Market – A Leveraged Play on Economy
Source: CIA – 2006, Tam Adex
8.7% 8.1%7.5%
9.6%
12.8%13.7%11.8%
14.1% 12.9%
23.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2002 2003 2004 2005 2006
GDP Growth Ad revenue Growth
6
1.27 1.28 1.32 1.33 1.37 1.39 1.52 North America
0.79 0.79 0.79 0.770.79 0.83 0.90 Europe
0.74 0.72 0.710.72 0.72 0.80 0.85 Latin America
0.820.82 0.82 0.82 0.80 0.82 0.85 Asia-Pacific
0.47 0.45 0.44 0.40 0.36 0.36 0.34 India
2006E200520042003200220012000
Source: Zenith Optimedia – June 2006
Indian Media Sector on the fast lane
� Ad Spend/GDP is lowest in India but rising
� All media segments likely to grow faster in the next 5 years
� Significant CAGR likely for FM Radio
7
• Ad revenue grew by 23.4% in 2006 vis-à-vis 14.1% in 2005
• Radio emerged as the fastest growing segment
Ad Revenue landscape
8
ENIL Overview
Our Vision is to be “A Leading City-centric Media Company By Delivering Unique
Audiences Through Media Vehicles Like FM Radio, Experiential Marketing And
Out-of-home Media”
9
� Mirchi Movies
Bennett Coleman & Co Ltd
Times Infotainment
Media Limited
Times Internet Limited
Entertainment Network (India)
Limited
Times Global Broadcasting
Publishing Division� The Times of India
� The Economic Times
� Navbharat Times� Maharashtra Times
� Sandhya Times
� Vijaya Times
� 360 degrees
� Times OOH
� Radio Mirchi
� indiatimes.com
� 8888
� Wallet365.com
� News Channel –
TIMES NOW
(JV with Reuters)
Entertainment & Retail� Times Music� Times Multimedia
� Planet M
� Entertainment Channel
- Zoom
Online Ventures� Timesjobs.com
� Timesmatri.com
World Wide Media
(JV with BBC)
� Femina
� Filmfare� Other MagazinesTIMPL
We are part of Times Group : India’s Largest Media Conglomerate
10
Times Innovative Media Private Limited (TIMPL), incorporated on October 26, 2005
Subsidiary:
Radio Broadcasting brand Radio Mirchi
Out-of-home Media brand Times OOH; and
Experiential Marketing brand 3600 Experience
Business:
– ENIL
– TIMPL
29.0%FY06 EBITDA Margin:
Rs. 408.3 mn ($9.2 mn)FY06 EBITDA:
Rs. 1,406.7 mn ($31.8 mn), including other income of Rs. 32.0 mn ($0.7 mn)
FY06 Total Income:
February 15, 2006Listed:
1999Incorporated:
Mumbai, IndiaHeadquarters:
Company Snapshot
11
Radio Industry Share (%)
Indian Radio Industry: • Rs 5.1Bn (US$ 114 M) in 2006• 2006- 2010E : 32% CAGR• Share expected to touch 8%
Source: Zenith Optimedia – June 2006, FICCI-PWC report
Zealand Average
15.4
12.0
9.58.5
7.0
4.93.1
-2.0
1.0
4.0
7.0
10.0
13.0
16.0
Philipines New Singapore World Thailand China India
3.8
UK
Radio Industry: On a song
12
Deregulation unlocks the true potential
6
Benefits of deregulation
• Audience
– More choices as
new radio
stations come up
• Advertisers
– More segmented
listeners as radio
stations
specialise in
specific formats
Radio adspend increase after deregulation in other countries
• UK: 3% (1992) to 5% (1997)
• Sri Lanka: 7% (1992) to 15% (1997)
Ad spend
1988 1989 1990 1991 1992 1993
Current ad spend ratio
• North Belgium:
1.2%
• South Belgium:
~8%
FM deregulated in
south Belgium;
north Belgium still
regulated
CAGR7.5%
CAGR31%
EXAMPLE: BELGIUM
BEF mn
534 519 616
1,931
2,670
3321
Source: Mediamark, McKinsey analysis
13
Evolution of Radio Industry
7
Ph ase 1
Ph ase 2
Ph ase 3
“Public m onopo ly ”
“Entry o f com petition ”
“Em ergence o f w inners ”
Exam p les (R ad io ad sp en d , % )
K ey reg u lato ry lev ers
• D enm ark (0 .6)
• Sw eden (1 .5 )• F in land (3 .0 )
• G erm any (4 .0 )
• F rance (6 .0 )
• Spain (9 .1 )
• C anada (12.7 )
• U S (13.0)
• M o de of entr y fo r com petition
• F ee s truc ture
• R ange of a llow ed
form ats
• E xten t o f coverag e /netw orking
a llow ed
E volu tion o f
rad io indus try
M aturity , ex ten t o f de regu la tion
S ource : M cKins ey analysis , H SB C , IR E P , ZAW
• R adio indus try dom inated by few
s ta te ow ned s ta tions
• Priva te s ta tions com e up as indus try is
de regu la ted
• N ew entran ts tr y to ga in
ea rly m arket share b y
pos ition ing the ir fo rm ats
• Leaders e xpand reach
– Bu ying out s ta tions
– B idd ing fo r
frequenc ies
• Leaders im prove p ro fitab ility b y sharing cos ts across s ta tions
Inc reas ing share o f
rad io
adspend
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• Roll-out of Phase II of privatization
• Fixed License Fee regime changed to
OTEF / Migration Fees + Revenue share
• Annual license fee 4%
of gross revenues
• FDI in Radio allowed
upto 20%
From existing 12 cities to 87 cities
From 21 stations to 266
stations
From 7 players to 43 players
Indian FM Radio Industry Transition
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Key Players in Indian FM Radio Industry
Player A+ A B C D Of top 13 towns Total
ENIL (Radio Mirchi) 4 9 11 7 1 13 32
Adlabs (Big FM) 4 4 10 24 3 8 45
Sun TV (South Asia FM) - 6 9 5 3 6 23
Sun TV (Kal Radio) 1 2 4 14 - 3 21
MBPL (Radio City) 3 8 3 6 - 11 20
Mid-Day (Radio One) 4 3 7 7
HT Media (Fever 104) 3 1 4 4
Red FM 3 3 3
Category
� ENIL won 25 licenses in the Phase II bidding
� ENIL has the best footprint - only company in top 13 towns with population of 2 mn+
� Revenue potential is low in ‘C’ and ‘D’ category towns
Source: Ministry of I & B, Industry data
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• Widely recognized brand
– Presence in key markets
– Radio Mirchi today reaches more people than the #1 TV/Print media
Brands in Delhi and Mumbai
• Innovative Content:
– Strong relationships with Hindi and other film fraternities
– Mature research culture – music/listenership
• Success in Diverse Markets
– Experience in running stations in almost all Indian languages
– Customized content in 10 distinct markets
• Superior Sales Capabilities
– Offering unique and innovative solutions
Hutch ‘Pink Campaign’
Mirchi Activation
Radio Mirchi: The Radio Station India tunes to…
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3.68
1.731.35
4.46
2.242.83
4.20
2.09 2.04
0.0
1.0
2.0
3.0
4.0
5.0
Radio Mirchi Radio City Red FM
Millions
Listenership in Mumbai
Source: MRUC Survey, AC Neilson (ORG-Marg-Wave10, fieldwork September, 06 to November, 06.
ORG-Marg-Wave 9, fieldwork July 06 to September 9, 06.
ORG-Marg-Wave 8, fieldwork Jan 06 to Mar 06, All Sec 12+)
Further Consolidates its Dominance #1 in Listenership
2.05 1.90
1.20
0.25
2.21
1.731.58
0.94
2.60
1.891.66
0.97
0.0
1.0
2.0
3.0
Radio Mirchi Radio City Red FM Go/ Radio one
ILT Wave 8 ILT Wave 9 ILT Wave 10
Listenership in Delhi Listenership in Kolkata
2.73
0.760.58
0.0
1.0
2.0
3.0
Radio Mirchi Red FM Amar FM 106.2
ILT Wave 10
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Other Operating Highlights
Leads content innovation
� Preferred radio partners for all big banner movies released in the country eg. Vivaah, Babul, Kabul Express, Dhoom2, Guru, and Salaam-e-Ishq
Signed agreement with T-series for Music royalty
� 9-year agreement with T-series, the largest music company in India
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• Largely Fragmented Industry
– Scope of high growth for organized players
– Times OOH first media powerhouse with well
known brand and Indian industry know-how
• Ability to Offer Integrated Marketing Solutions
– Diversified Product Mix in 3 Cities
– Won advertising rights of premium OOH
Properites
• Focus on Innovation and Technology
– Investment in LED Screens
– Customized solution provider
• Capacity to Handle Scale
Times OOH Media: First Organised Player In Indian OOH Media Industry
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Growing portfolio of premium outdoor assets
2.0029-Mar-0930-Mar-07Pune Hoardings
5.00 31-Mar-111-Apr-06Kolkata Metro
NANA20-Mar-06LED
2.00 30-Apr-081-May-06DND Flyway
5.00 31-Mar-111-Apr-06DMRC- Dwarka
2.00 3-Oct-074-Oct-05DMRC-CP
3.00 30-Jun-091-Jul-06Patel Bridge
3.50 31-Dec-081-Aug-05BQS Mumbai
Length of ContractEnd DateStart DateProperties
• Times OOH Media has been recently awarded the advertising rights
license at Delhi and Mumbai Airports
• Installed two LED video matrix screens at a prime slot in Mumbai
Airport
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• Managing large format events
– Smart Living Awards
– Habitat for Humanity’06
– Pravasi Bharatiya Diwas’06
– Filmfare Awards
– Miss India Pageant
– SBI Centenary celebration
• Key strengths
– National presence (8 branches)
– Experienced team of professionals
– Large bouquet of in-house events
• Geared for aggressive growth
– Increasing coverage of new clients and
new markets
– Consistently delivering innovative concepts
360°Experience: Eventful Consumer Engagements
22
Financial Highlights
23
� Total Income of Rs.484.1 million, growth of 30.7%
� Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at Rs. 176.5 million, up
20.8%
� EBITDA margin stood at 36.5%
� Net Profit at Rs. 124.0 million, growth of 13.9%
Q3FY2007 Performance Overview(All comparisons with Q3FY2006)
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On a like basis (excluding 3 new stations):
� Total Income of Rs. 392.1 million, growth of 5.8%
� EBITDA stood at Rs. 151.1 million, up 3.4%
� EBITDA margin stood at 38.5%
EBITDA margin of new stations – 28%
Q3FY2007 Performance Overview (Cont’d…) (All comparisons with Q3FY2006)
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Future Outlook And Strategy
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Future Outlook And Strategy
Ad industry is growing at 23% as per the recent Ad Ex India (a
division of Tam Media Research) study. The market size in CY
2006 was Rs. 16.3 billion (Previous Year Rs. 13.2 billion)
Radio is the fastest growing media sector – grew by 58%
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Future Outlook And Strategy
Expand our footprint in radio broadcasting
– Based on the present rate of progress, rollout of the remaining 22
stations is expected to be complete by July 31, 2007
– Explore opportunities in international markets
Maintain market leadership in fast growing radio industry
– Development of listenership research standards and methodology; larger geographic coverage
– Keep investing in brand building and programming innovation
– Launch Visual Radio through mobile phones in other cities
– Leverage footprint to capture additional income sources
– Exploit additional revenue streams like Mirchi Activation
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THANK YOU