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Dish TV India Limited

Investor Presentation

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. Th words d i The d 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 forward looking of 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.
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About us
Indias pioneer and Asia Pacifics largest* DTH company. Consistent market leader with 31% absolute share currently. Promoted and led by Subhash Chandra, Chairman, Essel Group. A th G thought l d ht leader and pioneer in most of his businesses.

Asia s Asias largest DTH

Consistent Leader

Promoted by Indias media pioneer


GROUP

Having diverse presence across media, packaging, entertainme nt, technology enabled services, infrastructure , development & education.

Indias first & largest, fully integrated, media & entertainment company. p y

* Ranked by DTH Subs (Y/E Dec. 09) MPA Report 2010

Indian DTH industry

Journey so far
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VOLUNTARY DIGITIZATION BY CABLE OPERATORS .

DTH SUBS CROSS 20 MN MARK

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DTH SUBS BREACH THE 2MN MARK IN A 2 PLAYER MKT. DISPUTE OVER CONTENT . SETTLEMENT BTW DISH & STAR

SUBSCR RIBERS IN MN M

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DTH SUBSCRIBER BASE AT ~10 MN

10 LAUNCH OF DTH SERVICE BY DISH TV IN SELECT MARKETS 5

DIGITIZATION TRIGGRED, CAS MADE MANDATORY IN SELECT PART OF METROS LAUNCH BY SUN DIRECT LAUNCH OF DTH SERVICE BY TATASKY

DISPUTE WITH SUN TV OVER CONTENT. SETTLED.

LAUNCH OF DTH SERVICE BY VIDEOCON

LAUNCH OF RELIANCE BIG TV

LAUNCH OF DTH SERVICE BY AIRTEL

DISH Subscribers

DTH Subscribers

Opportunities galore!
Key statistics: 2010
300
264 269

95% 90% 85% 80% 75% 70%

Total HHs TV HHs TV Penetration C&S HHs DTH Subs *

232 mn. 141 mn.


Million

250 200 150 100 50 0 2009


223 232

242

249

256

134 105 78%

147 141 82% 116

88% 86% 153 126 135

89%

90%

91%

170 165 159 155 149 142

61% 116 mn. 32.8 mn.

C&S Penetration (in TV HHs) 82%

2010 2011E 2012E 2013E 2014E 2015E Total HHs C&S HHs TV HHs C&S Penetration

Increasing TV HHs; likely to be 170 million, 64% penetration, by 2015. Developed countries average penetration at more than 97%. China at 98%. C&S penetration: huge opportunity, likely to be 91% by 2015.

DTH to be the key driver & direct beneficiary of increasing C&S households!
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Source: MPA 2010 report

* Up to 28/02/11. (Source: market est.)

C&S implies cable TV, DTH & IPTV

DTH growth projections


50 45 40 35 30 25 20 15 10 5 0

MPA 2010
25% CAGR 2009-13 31 24 17 36 41 45

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45 40 35 30 25 20 15 10 5 0

FICCI Frames 2010


25% CAGR 2009-13 30 24 16 35 39

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2009

2010

2011p 2012p 2013p 2014p 2015p

2009

2010p

2011p

2012p

2013p

2014p

DTH Sub. Base (mn.)


70% 60% 50% 40% 30% 20% 10% 0% 11.2% 11 2% 8.3% 16.4% 6. % 12.8% 20.9% 17.2% 24.3% 20.7% 26.8% 23.6% 28.8% 25.7% 30.1% 27.2% 31.2% 28.3% 65.7% 65.5% 65.0% 64.5% 63.9% 63.2% 62.4% 61.5%

% Cable HHs to TV HHs Source: MPA 2010 Cable HHs include analogue & digital cable

% DTH HHs to TV HHs

% DTH HHs to Pay TV HHs

Pay TV includes Cable + DTH + IPTV

Outperformed !!
MPA 2010 Report - DTH subscribers in India to reach 24 mn. by the end of 2010 ! FICCI Frames 2010 -Total number of DTH subscribers to be added in 2010 is expected to be ~ 8 million.

January December 2010

12.1 million* DTH subscribers added taking industry size to 30 6 million! 30.6

Record 2 million subscribers added during November 10 !

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* Source: Dish TV actual & Market Est.

Outperformed !!
DTH industry scale-up 35 30 25 20 15 10 5 0
Subscribers in Mn.

18.4 10.3 10 3

30.6

1.5

4.3

Source: Dish TV actual & industry est.

2006

2007

2008

2009

2010 - Upto December

DTH driving digitization & growth in pay-TV HHs. DTH penetration already at 27% of C&S HHs; ahead of estimates. An estimated 58% of all new C&S subscribers up to 2015 expected to opt for a DTH connection.*

With more than 2.5 mn. subscribers being added every quarter, India is poised to 2 5 mn quarter overtake the current leader (U.S), which currently adds ~ 1.5 mn. subscribers each year.
* Source: MPA - APAC Pay TV & Broadband Report 2010

Digitizing with addressability


100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 2010 P 2011 P 8% 17% 33% 92% 83% 67% 56% 44% 53% 47% 51% 49% Cable subscription to broadcasers DTH subscription to broadcasters

` mn. Subscription Revenue Cable Subscription to Broadcasters 2006 2007 Subscription Income Paid (Digital + Analogue) Less: Carriage & Placement Received Net Subscription Paid DTH Subscription to Broadcasters Net Subscription Paid
19750 5000 14750 1360 23110 6000 17110 3415

2008
27545 12000 15545 7795

2009
30805 13000 17805 13905

2010P
34535 13000 21535 19375

2011P
39305 13300 26005 24925

DTH continues to strengthen its relationship with broadcasters creating a win-win situation for both.
Source: MPA 2009, FICCI 2010 & Mkt. estimates

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Key regulations
Total foreign investment limit of 49% (sub limit ceiling of 20% for FDI) * Uplink centre to be in India Set-top boxes to be BIS compliant License fee at 10% of DTH revenues (favourable TDSAT Order received on 28/05/10 likely to result in license fee outflow at ~ 4%) Initial license validity of 10 years; renewable thereafter

Licensing g

Service quality

Subscribers can be offered STBs on Rent/Hire-Purchase/Sale Mechanism to be in place for handling customer complaints & grievances

Interconnect

Broadcasters have to provide content to all distribution platforms; pricing flexible Prohibits broadcasters from seeking guarantee for minimum number of subscribers

Reference interconnect

Pricing information on content of the broadcaster Maximum 50% of non-CAS cable rates A-la-carte offering to be allowed

* As per TRAIs (Telecom Regulatory Authority of India) recommendation dated 30th June, 2010 to the Ministry of I&B, Foreign Investment
Limit for DTH is to be increased to 74%. The recommendation is yet to be approved.

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Dish TV market leader in DTH

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Business basics
Direct-to-home distribution of TV channels up-linked from India by Broadcasters. CPE installed on rent at consumers premises. Inertia to pay for hardware equipment results in up-front subsidy on STBs. Negative Working Capital cycle prepaid model. DTH revenue includes subscription and lease rentals. p Alternate revenue streams - Value-added-services, Movie on-demand and Bandwidth charges. Fixed content cost deals with most broadcasters; significant competitive advantage. Growing subscriber base would bring operating leverage into play.
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Key strengths
Brand
Strong Brand presence and Brand recall.

Market Leadership
Largest subscriber base amongst all six players; currently at 31%. Carried and distributed by most third party dealers and distributors.

Content
Highest number; more than 250 channels & services and growing.

Selling & Distribution Network


Pan-India presence through 1400 distributors & ~55,000 dealers across 6600 towns Network managed b over 200 sales personnel. 8 Z N t k g d by l l Zonal and 19 Regional Offices. l d R gi l Offi

Advanced Infrastructure & Technology


Sufficient capacity to broadcast increasing number of channels currently 16 KU p y g y band transponders equivalent.

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Largest Bouquet

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Maximum HD

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Maximum Regional

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Select key management personnel


Subhash Chandra Non Executive Chairman Promoter Essel Group of Companies. He is the pioneer of the Indian television industry and recipient of numerous honorary degrees, industry awards and civic honours Profile - Chairman pdf honours. Chairman.pdf Mr. Goel is the MD of Dish TV since January 07 & has been instrumental in establishing it as Indias leading DTH company. He has also been actively involved in the expansion of the Essel Group and is an active member on the Board of various committees set up by MIB, Govt. of India for addressing critical matters relating to the industry. Profile - MD.pdf On-board since July 10, he was the MD-India & South Asia, ESPN Star Sports before that. An IIT, IIM Graduate, Venkateish has more than 27 years of experience & a successful track record in turning around businesses & re- defining business processes for winning brands like Oral-B, Nestle and Kelloggs. Profile - CEO.pdf Salil has a work experience of more than 18 years and has worked with various global corporations including Microsoft and Samsung. He is an MBA from Delhi University. A qualified Chartered Accountant, Rajeev has been leading the finance department since January, 07.

Jawahar Lal Goel Managing Director

R.C. Venkateish CEO

Salil S l l Kapoor COO

Rajeev Dalmia CFO

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Dish TV now

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Asia - Pacifics largest

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Market leading share


Dish TV continues to lead with the highest market share amongst all 6 players

17% 19%

9% 17% 7%

31%

Dish TV Big TV

Tata Sky Airtel Digital

Sun Direct Videocon D2h

Source: Dish TV actual & industry est. (28/02/11)

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Consistent leadership
Dish TV Increasing number of subscribers
10 8.3 8 6.9 6.4 6 4.7 4 4 5.1 5.5 4.3 5.9 4.6 5 5.3 53 5.7 6.2 20 15 11.1 10 2 5 0 0 Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY Q FY Q2 FY Q3 FY Q1 Q Q Q 09 09 10 10 10 10 11 11 11 Dec. '07 Dec. '08 Dec. '09 Mar. '10 June '10 Sept. Dec. '10 '10 Total DTH Subscribers Dish TV Subscribers 3.6 4.7 2.7 6.4 64 6.9 7.5 8.3 18.4 42% 35% 33% 33% 32% 31% 9.4 7.5 6.8 7.7 25 20.7 23 50% 40% 30% 20% 10% 0% 35 75% 30 26 30.6

Dish TV - Market share on total subscriber base


80% 70% 60%

9.4

Gross Subscriber Base (mn.)


Source: Dish TV

Net Subscriber Base (mn.)

Dish TV Market Share

Players with large and stable subscriber base to emerge as winners in the long run. Dish TV is well placed being the largest player in the DTH industry.

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Key business metrics


160 150 137

Average Revenue Per User (ARPU)


132 142 139 135 138 139 139 142

ARPU breaks out of a five quarter flattish trend !


80 Q2 FY 09 9 Q3 FY 09 9 Q4 FY 09 9 Q1 FY 10 0 Q2 FY 10 0 Q3 FY 10 0 Q4 FY 10 0 Q1 FY 11 Q2 FY 11 Q3 FY 11

Increasing traction in middle level subscription packs.

Subscriber Acquisition Cost (SAC)


3000 2000 2601 2832 2505 2487 2635

2477 2383

2147 2083 2142

Focus on reducing subsidies. Aggressive competition at th acquisition A i titi t the i iti front resulted in marginally higher box subsidies.

`
1000 0 Q2 FY 09 F Q3 FY 09 F Q4 FY 09 F Q1 FY 10 F Q2 FY 10 F Q3 FY 10 F Q4 FY 10 F Q1 FY 11 F Q2 FY 11 F Q3 FY 11 F

Source: Company ARPU = (Subscription revenue + activation charges) / Avg. subscribers during the period; SAC = Subsidy on STB+80% of marketing expenses + Commission to dealers

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Driving up ARPUs marketing initiatives

Silver pack made dormant Price increase in three out of five packs. dormant. packs Constant marketing initiatives to create better value proposition in higher ARPU packs. 24

Financials

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Encouraging performance
O i Revenues - A l Operating R Annual
12000 10000 10848 20% 0% -20% 4127 1909 -40% -60% 80% -80% FY 07 FY 08 FY 09 FY 10 -100% -97% -53%

EBITDA M i - A l Margins Annual


8.7%

FY 08-10 CAGR 62.0%


7377

` Mn

8000 6000 4000 2000 0

FY 07

FY 08

FY 09
-18.3%

FY 10

Operating Revenues - Quarterly


Q3 FY 09

EBITDA & EBITDA Margins - Quarterly


Q4 FY 09 Q1 FY 10 Q2 FY 10 Q3 FY 10 Q4 FY 10 Q1 FY 11 Q2 FY 11 Q3 FY 11

4000 3000 ` Mn 2000 1000 0


2467 2575 2775 3032 3043 3261

3732 800 600

9.9% 9 9% 6.4% 2% 4.8%

13.2%

15.3% 10.6%

17.9%

400

157

255

0 200 -200
Q1 FY 10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY 11 Q2 FY 11 Q3 FY 11

-400 -600
-20%

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-3 389

134

42

200

322

498

400

20% 15% 10% 5% 0% -5% -10% -15% -20% -25%

` Mn

667

Fixed content cost driving margins

3500 3000 2500


` mn.

Content Cost

Contribution

Content Cost (% Subs Revenue)

71%

73%

80%
61% 61%

70% 60% 61% 61% 59% 54% 46%

70% 60% 50%

54% 46%

54% 46%
1150 1298

57% 43%
1437

58%

2000 1500 1000


202

40% 29% 27%


234

1638

529

540

97 71

1023

588

1086

30%

1862

39%

39%

41%

42%

39%

39%

40% 30% 20% 10%

500 0

502

646

755

319

804

867

929

670

881

925

986

1,001

1,060

1,062

1,229

0%

Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10

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Summary financials
Quarter ended Gross operating revenue Expenditure EBITDA Add: Other income Less: Depreciation EBIT Less: Financial expenses PBT Provision for tax PAT Operating Metrics Subscribers added (mn.) SAC (Rs/subscriber) ARPU (INR) Dec '09 March '10 June '10 Sept '10 Dec '10
2775 2659 116 11 779 -652 110 -762 0 -762 762 0.55 2477 135 3032 2683 349 5 846 -492 106 -598 0 -598 598 0.44 2383 138 3043 2721 322 69 889 -498 133 -631 0 -631 631 0.64 2147 139 3261 2763 498 25 843 -320 131 -451 0 -451 451 0.76 2083 139 3732 3065 667 17 902 -218 225 -443 0 -443 443 1.1 2142 142

Dec '09 March '10 June '10 Sept '10 Dec '10

** HITS operations discontinued w e f 1Q FY11 w.e.f. FY11. Source: Company Financials. All figures in ` mn. except mentioned otherwise.

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Way forward

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Growth beyond just subscriber numbers

Continuous focus on: Sustained product Augmenting revenue contribution Expand customer base with focus on leadership 30 through innovative value added services innovation to retain subscribers and expand category Customer care Brand building Technology and Distribution Content enrichment

Thank you

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Questions

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