Investor Presentation - GTPL. Intimation...Cable Offers Better Value Proposition than DTH 6 DTH1...
Transcript of Investor Presentation - GTPL. Intimation...Cable Offers Better Value Proposition than DTH 6 DTH1...
Investor PresentationFebruary 2018
INDUSTRYOVERVIEW
COMPANYOVERVIEW
FINANCIALHIGHLIGHTS
GROWTHSTRATEGY
ANNEXURE
2
Multiple Drivers to Push Growth for Cable TV Business
Extrinsic growth drivers
2017 2021E % Growth
No. of TV HHs (mn) 187 206 9.6%
TV Penetration % 64% 67%
No. of Pay C&S subs (mn) 154 171 11.0%
Cable TV - % of TV HHs 82.4% 83.0%
ARPU(Rs.)Growtharoundtheworld
28 15
119
21
74% 67%53%
35%
10%0%
10%
20%
30%
40%
50%
60%
70%
80%
'-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Thailand Japan Korea China India
HD TV (mn) HD Penetration
India’s digital HD penetration opportunity
Source:MPAReport2017
181 187 192 197 202 206
149 154 160 165 168 171
2016 2017 2018E 2019E 2020E 2021E
TV Homes (mn) Pay C&S Subs (mn)
Total TV Home & Pay C&S subscribers
3
4160 3900
1560650 195
3770 3575
1755780 260
Australia NewZealand
Malaysia Korea India
2017 2022E ARPUGrowth
-9% -8% 13% 20% 33%
Strong Subscription Revenue for Television
Ø Subscriptionbusinesscontributes2/3oftheoverallrevenueforthetelevisionbusiness
Ø Theoverallcontributionofsubscriptionbusinesswillremainstablefornext5years.
Ø Subscriptionrevenueexpectedtogrowc.7%till2021,underpinningstronggrowthinthesector
Ø Televisionviewershipcontinuestogrow,nextphaseofgrowthwillbesupportedbytheruralmarket
367 402 437 464 483 497
2016 2017 2018E 2019E 2020E 2021E
India
TVSubscriptionrevenuegrowingsteadily(Rs.bn)
62%
38%
Subscription Advertisement
Revenuesplit– Televisionbusiness
2017
Source:MPAReport20174
38%
38%
15%
5% 4%
TV Print Digital OOH Radio
Increase in Television Viewership Ensures Higher Advertisement Revenue
Televisionadvertisinggrowingsteadily(Rs.bn) Advertisementrevenuesplit– Segmentwise
37%
28%
27%
4% 4%
Ø IncreaseinTelevisionviewershipensureshigheradvertisementrevenue,expectedtogrowat11%
Ø Printadvertisingisshrinkingascontentdeliveryfromprintismovingtowardsdigital
Ø Televisionisabletomaintainitsshareintheadvertisementmarket
Source:FICCI2017report
2016 2021E
249 279 314 347 380
2017 2018E 2019E 2020E 2021E
5
Source:MPAReport2017
Cable Offers Better Value Proposition than DTH
6
DTH1 Cable2,3 GTPL Hathway
Base PackPrice per Month 260 - 276 100*Total No. of Channels 151 – 233 103Price per channel 1.2 – 1.8 0.97
Mid tier PackPrice per Month 340 – 381 230 – 235 250-280Total No. of Channels 163 – 259 233 – 250 278Price per channel 1.4 – 2.2 0.9 – 1.0 0.90-1.01
Premium PackPrice per Month 430 – 530 280 – 285 300-490**Total No. of Channels 206 – 276 248 – 275 356-420Price per channel 1.6 – 2.5 1.0 – 1.2 0.84-1.17
Source:MediaPartnerAsia,Sep20161. DTHincludesVideocon,Airtel,DISH,BIGtvandTataSky2. CableincludesDenandSitiCable3. Cableindustryoffersonly2packs,baseandpremiumpack4. *Basepackisfreetoairchannelsonly5. **Premiumpack(i)RoyalPack(ii)Royal-HDpack
• Cable provides stable connections with zero downtime
• Cable packages are competitively placed among DTH players.
• Cable High Definition package offers better value proposition to consumers compared to Standard Definition from DTH
• Cable operators have better control over the content compared to DTH, GTPL provides content for 28 channels
Broadband Business in India is set to Grow Exponentially
7
India has 2nd largest internet user base in the world
Significant scope for increase in broadband penetration (Subscribers in mn)
462
829
2017 2021
CAGR 15.8 %
In Mn
39319
21 8 20126
1157
87 61293
31% 28% 24% 13% 7%
-2000%
-1500%
-1000%
-500%
0%
500%
1000%
1500%
2000%
2500%
Japan China Korea Thailand India
Fixed Broadband Subscribers Mobile Subscribers Mobile to fixed ratio
Subscribers in Mn in 2017
Ratioforwirelesstofixedconnectionishighcomparedtoothernations
Total Homes Vs. Fixed Broadband subscribers (mn)
473 476 478 481 484
19 2226 28 31
05101520253035
2017 2018E 2019E 2020E 2021E
Total Homes Broadband subscribers
Source:MPAReport2017
Digital India Future Would be High Speed Internet
8
Fixed Broadband speed in India
• Futuredataconsumptionwillrequiremorehighspeedinternetconnection
• Videosinfuturewillbecomemorehighdefinitionandhencerequirementofbroadbandwillgoup
• Indiabroadbandpenetrationandspeedareatinitialstagecomparedtootherdevelopedanddevelopingnations
133
78 7764 53
26 20
Korea Japan USA China UK Australia India
Indian spend large amount of time online
4.7 4.4 4.3 3.83.1 2.93.5 3.1
1.9 1.6 1.90.6
Indonesia India US UK Korea Japan
Fixed (Cable, xDSL, FTTx) Wireless
Hours / day / person mbps
Source: Ookla Speedtest Global Index
Cable and Broadband can Leverage Same City Access Network
9
Infrastructure leverage to deliver cable and broadband
Create a central hub for the city
Reaching the society/locality,
hub to reach households
Digital Cable Headend
Connecting from society to each household
q No Separate network required for Cable and Broadband within city
q Cable subscription has reached 6.7 mn, Broadband homepasscreated for 1.11 mn; need to convert the Home Pass to subscriber
Satellite for Cable network
BroadbandNOC
TV
CORENETWORK
POP
POP
POP
POP
INDUSTRYOVERVIEW
COMPANYOVERVIEW
FINANCIALHIGHLIGHTS
GROWTHSTRATEGY
ANNEXURE
10
GTPL – Leader across Key Regional Cable Markets in India
11
KEY HIGHLIGHTS (as of 31st-Dec-17)
Total Set-Top Boxes Seeded
Active Digital Subscribers
Broadband Homes Passed
Total Broadband Subscribers
8.46mn
7.20mn
1.24mn
0.272mn
• Strong market share in key regional markets that are primarily Hindi speaking areas
Key Standalone 9 month Financials (IND AS) (INR MN)
REVENUE
EBIDTA
PAT
5572
1790
505
FY18–9M
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar
Present in 200+ towns across 11 states Showing Maximum number of TV Channels in India
FY 17-9M
4496
1365
197
Consolidated Financials FY 17 - Revenue, EBIDTA and PAT stands at INR 9417 mn, INR 2400 mn and INR 400 mn respectively
-No 1 in CATV -67% market share- 4.2m STB Seeded-Significant Private Wired-Broadband Provider
-1.2m STB Seeded-Significant presence in Phase II,III and IV Markets
-No 2 CATV Provider-24% market share-2.0 m STB Seeded
11
Organic expansion of services M&A / Inorganic expansion
2006Incorporated as Gujarat Tele Link
Private Limited
2011Entered Assam and
West Bengal
Installed digital headend in Kolkata
Installed new digital headend at Ahmedabad
2008Commenced broadband
services
2013Entered Patna
and Andhra Pradesh
Digitization of Phase I & II completed
2015Received
category A ISP license
Installed digital
headend in Dibrugarh
2014Commenced
package based billing
2007Hathway acquired
50% stake
Received category B ISP license
Installed digital headend in Ahmedabad
2017Came with public issue
Shares listed on BSE and
NSE
Evolved over the years to become a leader across key regional cable markets in India
12
Key Inherent Strength of GTPL Hathway
Leadershippositioninoperatingmarket
Leadership Position in Operating Market1
• #1 MSO in Gujarat, #2 in WB• Significant Presence in Rest of Maharashtra–
Seeded 1.2 mn Boxes• 1.24 mn Broadband Home Pass – Mainly in
Gujarat• Maximum Number of TV Channels in India
Located in Consumption Market2
• 95% CATV Subs in Hindi Speaking Market• Gujarat, Maharashtra, WB key markets for
National and Regional Advertiser• Better Negotiation Power with Broadcaster
Trusted partner among LCO3
• 20000+ LCO’s as Partner• Bottom-up company – Transparency in its
approach• Treats LCO as Business Partner
High Quality Technology and Infrastructure4• Partnered with Leading Technology Provider
for best quality• Deployed next-generation video headend
system from Harmonic Inc., USA
13
Advanced technology and equipment provided by leading technology vendors
Optic Fibre Cable Network
ü Owned:12000+ KMs
ü Underground: 1000+ KMs
GPON Technology
ü Seamless connectivity
ü Higher broadband speed
ü VoD, OTT capabilities
KEYTECHNOLOGY
PARTNERS
CISCO Harmonic Changhong (Hong Kong)
Shenzhen SkyworthNagravision SA Magnaquest Technologies Ltd Tele System
SterliteTechnologies
ü Leased: 5000+ KMs
Cutting Edge Technology and Infrastructure
Mother HeadendGujarat
Main HeadendKolkata
Support Headendfor disaster management
MotherHeadendcapableofcateringtoentirecountry
Well positioned to expand reach into different geographies
NOKIA
ZTE
14
Experienced Management Team with Strong Track Record
Aniruddhasinhji Jadeja, Promoter and MD
Zealous entrepreneur; started with cable operations in 90s and shaped GTPL in 2006; has many accomplishments to his credit; has won numerous industry/social awards.
Sumit BoseHead Video Business
Exec. MBA (ISB, Hyd); 28 yrs. of experience across consumer durable, cable (analogue / digital) and broadcast enterprises including Godrej, ESPN-Star, Siticable.
Hetal Shah,Head Broadband
Computer Engineer; has had association with You Broadband, Tata Tele & Sterlite Tech (Elitecore) and other companies over 24 years; mainly in Techno-commercial roles
Jayanta PaniChief Financial Officer
CA and ICWA (Rank holder) with 23 years of experience in Finance and Accounts across different industries like FMCG, Synthetic, Tea, Leather etc.
Piyush Pankaj, Chief Corporate Affairs Officer
CFA and MBA with 19 years of experience in Media, Internet & Ecommerce; has worked in Astro Group (Malaysia) and Zee Group (India)
V GuruprasadChief Technology Officer
Master in Electronics and having 27 years of experience in Broadband and Cable Technology enterprises like Reliance JIO, Silicon Applications(Singapore) and Scientific Atlanta
Subrata BhattacharyaChief Information Officer
Electrical Engineer; 23 years of rich experience in analog/digital Cable TV/Broadband technology across reputed companies like RPG Netcom, Siticable and Cablecomm
Ketan BhattChief People Officer
PGDRM from the Institute of Rural Management, Anand; has worked in British Gas, Idea Cellular, Torrent Pharma and Torrent Power over 24 years in HR & OD domains
15
Launch of GPON FTTH at Ahmedabad – “Sach Mein Unlimited”
• The Company upgraded network to provide high-speed broadbandservices in Ahmedabad City over GPON Fibre to the Home (FTTH)technology
• With the upgraded, reliable and consistent Fibre Network, the Companyhas launched “Unlimited data” services for retail home customers withoptions of 40Mbps speed and 100Mbps speed.
*GPON– GigabitPassiveOpticalNetwork16
Performance – 9M FY* 2018
17
Ø Seeded1.56mnSTBboxesduring9MFY2018.
Ø Increased1.22mnCATVDigitalActiveSubs.
Ø Increased1.82mnCATVDigitalPayingSubs.
Ø IncreasedARPUinPhaseIIIandPhaseIVfromINR54toINR61andINR41toINR51respectively.
Ø ExpandedCATVServices- EnteredNewState– Goa.
Ø GrossDebtstandsatINR3422mnason31st December2017incomparisontoINR3439mnason30th September2017 andINR5490mninMarch2017.
Ø NetDebtstandsatINR2581mnason31st December2017incomparisontoINR2441mnason30th September2017andINR4426mninMarch2017.
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar
Performance – 9M FY* 2018
18
Ø Addedaround160KnewHomePassinBroadbandBusinessin9months
Ø Increased32KBroadbandSubscriberduring9MFY2018
Ø DataConsumptionperCustomerStandsat59GB/monthasonDecember2017(Y-O-Yincreaseof69%;Q-O-Qincreaseof28%)increasingfrom46GB/monthfromSeptember2017and34GB/monthinDecember2016
Ø GPONupgradationandImplementationforHigh-SpeedBroadbandProgressinginfastpacein4majorcitiesofGujaratnamelyAhmedabad,Baroda,SuratandRajkot.
Ø LaunchedGPONFTTHHigh-Speedbroadbandservicesof100Mbpsand40Mbps“unlimiteddata”plansinAhmedabadon3rd Feb2018withpricerangeofINR635-763permonth(excludingtaxes).
Ø ThelaunchissupportedbyMarketingActivity“SachMeinUnlimited”acrosstheserviceareasatAhmedabad.
Ø PlantolaunchprogressivelyinothercitiesofGujarat.
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar
KEY KPIs – CATV Business - Quarter wise (Consolidated)*
STBs SEEDED (MN) DIGITAL PAYING SUBS (MN)ACTIVE STBs (MN)
*Asonendofperiod
6.45
6.9
7.76
8.288.46
Q32017 Q42017 Q12018 Q22018 Q32018
5.63
5.98
6.69
7.067.20
Q32017 Q42017 Q12018 Q22018 Q32018
4.60
4.93
5.70
6.646.75
Q32017 Q42017 Q12018 Q22018 Q32018
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar
19
KEY KPIs – CATV Business - Quarter wise (Consolidated)*
PHASE WISE SEEDED BOX (MN)– Q3 FY 18* PHASE WISE ACTIVE SUBS (MN)– Q3 FY 18*
PHASEWISE DIGITAL PAYING SUBS (MN)– Q3 FY 18* PHASE WISE ARPU (INR) (NET OF TAXES)
*Asonendofperiod
0.74
2.202.55
2.98
PhaseI PhaseII PhaseIII PhaseIV
0.58
1.68
2.252.69
PhaseI PhaseII PhaseIII PhaseIV
0.56
1.662.04
2.49
PhaseI PhaseII PhaseIII PhaseIV
101 96
5849
101 96
6151
PhaseI PhaseII PhaseIII PhaseIVAsonSept2017 AsonDec2017
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar
20
KEY KPIs – Broadband Business - Quarter wise*
HOME PASS (MN) ARPU (INR) (NET OF TAXES)SUBSCRIBER (MN)
*Asonendofperiod
1.02
1.081.11
1.15
1.24
Q32017 Q42017 Q12018 Q22018 Q32018
0.220
0.240
0.250
0.260
0.272
Q32017 Q42017 Q12018 Q22018 Q32018
472
480
486487 487
Q32017 Q42017 Q12018 Q22018 Q32018
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar
21
INDUSTRYOVERVIEW
COMPANYOVERVIEW
FINANCIALHIGHLIGHTS
GROWTHSTRATEGY
ANNEXURE
22
GTPL Hathway Limited
3) Financial Results Q3 FY2018 and 9M FY2018
Financial Results – Q3 FY 2018
PresentationIncludesfollowingfinancials:
1) GTPLHathwayLimited– ListedCompany(Standalone)
2) GTPLBroadbandPrivateLimited– 100%SubsidiaryofGTPLHathwayLimited(Broadband)- providesBroadbandServices
3) GTPLKolkataCable&BroadbandParisevaLimited(KCBPL)– Subsidiary– 51%ownedbyGTPLHathwayLimited– CableTVoperationatWestBengalMarket.
Theabovethreecompaniescontributed~90%ofRevenueinConsolidatedAccountsofFinancialYear2016-2017.
24
Performance – Q3 FY 2018 and 9M FY 2018- Summary (IND AS)*
• FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar• KCBPLandBroadbandfinancialshasbeenapprovedbytheirrespectiveBoards
Q3FY2018
9MFY2018
Particulars(INRMN) GTPLHathwayStandalone Broadband KCBPL
Revenue 1955 344 447
EBITDA 634 101 160
PAT 238 39 28
Particulars(INRMN) GTPLHathwayStandalone Broadband KCBPL
Revenue 5572 993 1171
EBITDA 1790 277 342
PAT 505 115 17
25
Standalone Financial Results Q3 FY 2018 and 9M FY 2018 Highlights (IND AS)
QUARTER-3 FINANCIALS
Y-O-Y Revenue up by 23% ; Q-O-Q Revenue up by 7% Y-O-Y EBITDA up by 46% ; Q-O-Q EBITDA up by 8%Y-O-Y PAT up by 478% ; Q-O-Q PAT up by 101%EBITDA Margin at 32.4% ; Y-O-Y increase of 530 basis points
9 MONTH FINANCIALS2
9M-O-9M Revenue up by 24% 9M-O-9M EBITDA up by 31%9M-O-9M PAT up by 156%EBITDA Margin at 32.1%; increase of 180 basis points
REVENUE
Y-O-Y Subscription Revenue up by 29% ; Q-O-Q up by 6%9M-O-9M Subscription Revenue up by 27%Y-O-Y Placement Revenue up by 12%; 9M-O-9M up by 13%Y-O-Y Activation Revenue up by 21%; 9M-O-9M up by 25%
EXPENSESY-O-Y Finance Cost down by 75% ; Q-O-Q down by 55%9M-O-9M Finance Cost down by 48%
4
3
1
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar26
Total Revenue (INR mn) PAT (INR mn)EBITDA (INR mn)
Standalone Financial Results Q3 FY18 and 9M FY18 Highlights (IND AS)
9MonthlyComparison
1,593
1,8351,955
Q3FY17 Q2FY18 Q3FY18
QuarterlyComparison
433
585634
Q3FY17 Q2FY18 Q3FY18
41
119
238
Q3FY17 Q2FY18 Q3FY18
4,496
5,572
9MFY17 9MFY18
1,365
1,790
9MFY17 9MFY18
197
505
9MFY17 9MFY18
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar27
Standalone Financials (IND AS)*
*AsperLimitedReview*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar
Particulars (INR mn) Q3 FY18 Q2 FY18 Q-O-Q % Q3 FY17 Y-O-Y% 9M FY18 9M FY17 9M-O-9M% FY'17Revenue
Subscription CATV 1,063 1,001 6% 825 29% 2,966 2,338 27% 3180Placement 587 588 0% 523 12% 1,753 1,547 13% 2114Activation 180 175 3% 149 21% 531 424 25% 595Other Operating Income 64 47 36% 50 28% 199 136 46% 239Other Income 60 25 141% 45 34% 123 53 135% 253
Total Income 1,955 1,835 7% 1,593 23% 5,572 4,496 24% 6,380Expenditure 0
Pay Channel Cost 803 809 -1% 747 8% 2,410 1,968 22% 2783 Bandwidth Expense 28 26 6% 29 -3% 91 71 29% 100
Employee Cost 134 134 0% 129 4% 384 315 22% 445 Other Operating Expense 108 113 -4% 88 24% 308 300 3% 395 Administrative expense 247 167 48% 167 47% 588 478 23% 656
Total Expenditure 1,321 1,250 6% 1,160 14% 3,782 3,132 21% 4,379
EBITDA 634 585 8% 433 46% 1,790 1,365 31% 2,002EBITDA % 32.4% 31.9% 0.6% 27.2% 5.3% 32.1% 30.4% 1.8% 31.4%
Depreciation/Amortization 267 266 0% 230 16% 794 686 16% 934 Finance cost 35 79 -55% 142 -75% 199 382 -48% 506
Profit before Tax & Exceptional item 332 240 38% 61 441% 797 296 169% 562 Exceptional item 0 42 0 42 PBT 332 198 68% 61 441% 755 296 154% 562
Tax 95 80 18% 20 378% 251 98 156% 161 PAT before Minority Interest 237 118 102% 42 471% 504 198 154% 401Add/(Less) Comprehensive
Income 1 1 #REF! - 0 1 (1) (3)PAT 238 119 101% 41 478% 505 197 156% 398
28
Broadband Financial Results Q3 FY 2018 and 9M FY 2018 Highlights (IND AS)
QUARTER-3 FINANCIALS
Y-O-Y Revenue up by 7% ; Q-O-Q Revenue up by 4% Y-O-Y EBITDA up by 31% ; Q-O-Q EBITDA up by 10%Y-O-Y PAT up by 9% ; Q-O-Q up by 1%EBITDA Margin at 29.3% ; Y-O-Y increase of 520 basis points
9 MONTH FINANCIALS2
9M-O-9M Revenue up by 15% 9M-O-9M EBITDA up by 33%9M-O-9M PAT up by 23%EBITDA Margin at 27.8%; increase of 380 basis points
REVENUEY-O-Y Broadband Revenue up by 7% ; Q-O-Q up by 3%9M-O-9M Broadband Revenue up by 15%
EXPENSES
Y-O-Y Other Operating cost down by 26%;9M-O-9M down by 16%Y-O-Y Administrative cost down by 24%;9M-O-9M down by 7%
4
3
1
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar29
Total Revenue (INR mn) PAT (INR mn)EBITDA (INR mn)
Broadband Financial Results Q3 FY18 and 9M FY18 Highlights (IND AS)
9MonthlyComparison
QuarterlyComparison
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar
321
331
344
Q3FY17 Q2FY18 Q3FY18
77
92101
Q3FY17 Q2FY18 Q3FY18
36.1
39.1 39.4
Q3FY17 Q2FY18 Q3FY18
866
993
9MFY17 9MFY18
208
277
9MFY17 9MFY18
94
115
9MFY17 9MFY18
30
Broadband Financials (IND AS)*
*AsperLimitedReview*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar
Particulars(INRmn)
Q3FY18 Q2FY18 Q-O-Q% Q3FY17 Y-O-Y% 9MFY18 9MFY17 9M-O-9M% FY'17Revenue
Broadband-ISP 342 331 3% 320 7% 991 866 15% 1,200OtherIncome 1 0 724% 0 1705% 2 1 143% 2
TotalIncome 344 331 4% 321 7% 993 866 15% 1,203Expenditure
BandwidthExpense 50 51 -2% 47 6% 156 149 4% 206EmployeeCost 114 110 3% 91 25% 324 243 34% 331OtherOperatingExpense 35 34 2% 47 -26% 108 129 -16% 176Administrativeexpense 44 44 0% 58 -24% 129 138 -7% 175
TotalExpenditure 243 239 1% 243 0% 716 659 9% 888
EBITDA 101 92 10% 77 31% 277 208 33% 314EBITDA% 29.4% 27.7% 1.7% 24.1% 5.3% 27.9% 24.0% 3.9% 26.1%
Depreciation/Amortization 31 28 10% 21 47% 86 62 40% 86Financecost 10 5 92% 1 1395% 16 4 253% 5
PBT 60 58 3% 55 8% 175 142 23% 223Tax 20 20 4 19 60 48 72PATbeforeComprehensiveIncome 40 38 3% 36 10% 115 94 23% 151Add/(Less)ComprehensiveIncome (0) 1 - 0 - (0)PAT 39 39 1% 36 9% 115 94 23% 151
GTPL Broadband PVT LTD FY 2017-2018
31
KCBPL Financial Results Q3 FY 2018 and 9M FY 2018 Highlights (IND AS)
QUARTER-3 FINANCIALS
Y-O-Y Revenue up by 61% ; Q-O-Q Revenue up by 12% Y-O-Y EBITDA up by 617% ; Q-O-Q EBITDA up by 34%Y-O-Y PAT positive at INR 28mn from negative 41 mn; Q-O-Q PAT up by 2676%EBITDA Margin at 35.7% ;Y-O-Y increase of 2770 basis points
9 MONTH FINANCIALS2
9M-O-9M Revenue up by 39% 9M-O-9M EBITDA up by 143%9M-O-9M PAT positive at INR 17mn from negative INR 56mn EBITDA Margin at 29.2%; increase of 1250 basis points
REVENUE
Y-O-Y Subscription Revenue up by 69% ; Q-O-Q up by 18%9M-O-9M Subscription Revenue up by 44%Y-O-Y Placement Revenue up by 12%; 9M-O-9M up by 6%Y-O-Y Activation Revenue up by 193%; 9M-O-9M up by 247%
EXPENSESY-O-Y Finance Cost down by 41% ; Q-O-Q down by 16%9M-O-9M Finance Cost down by 29%
4
3
1
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar32
Total Revenue (INR mn) PAT (INR mn)EBITDA (INR mn)
KCBPL Financial Results Q3 FY18 and 9M FY18 Highlights (IND AS)
9MonthlyComparison
QuarterlyComparison
278
398447
Q3FY17 Q2FY18 Q3FY18
22
119
160
Q3FY17 Q2FY18 Q3FY18 (41)
1
28
Q3FY17 Q2FY18 Q3FY18
843
1171
9MFY17 9MFY18
141
342
9MFY17 9MFY18 (56)
17
9MFY17 9MFY18
*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar33
KCBPL Financials (IND AS)*
*AsperLimitedReview*FY=Apr- Mar,9M=Apr-Dec,Q1=Apr-Jun,Q2=Jul-Sep,Q3=Oct-Dec,Q4=Jan-Mar
Particulars (INR mn) Q3 FY 18 Q2 FY 18 Q-O-Q % Q3 FY 17 Y-O-Y% 9M FY18 9M FY17 Y-O-Y% FY'17
RevenueSubscription CATV 303 256 18% 179 69% 760 527 44% 719Placement 77 80 -4% 69 12% 236 223 6% 302Activation 47 56 -16% 16 193% 130 38 247% 54Other Income 20 6 221% 14 42% 45 55 -20% 77
Total Income 447 398 12% 278 61% 1,171 843 39% 1152Expenditure
Pay Channel Cost 195 194 0% 179 9% 568 512 11% 679Employee Cost 29 26 9% 27 5% 80 68 18% 87Other Operating Expense 29 28 2% 17 67% 86 57 53% 100Administrative expense 35 30 17% 32 10% 94 65 46% 92
Total Expenditure 288 279 3% 256 12% 829 702 18% 958
EBITDA 160 119 34% 22 617% 342 141 143% 195EBDITA % 35.7% 30.0% 5.8% 8.0% 27.7% 29.2% 16.7% 12.5% 16.9%
Depreciation/Amortization 109 109 0% 67 61% 292 187 56% 253Finance cost 8 9 -16% 13 -41% 25 35 -29% 38
PBT 43 2 2575% (58) 25 (82) (97)Tax 15 1 2405% (17) 9 (25) (38)
PAT before Comprehensive Income 28 1 2676% (41) 17 (56) (58)Add/(Less) Comprehensive Income - - - - - - PAT 28 1 2676% (41) 17 (56) (58)
GTPL Kolkata Cable & Broadband LTD FY 2017-2018
34
GTPL Hathway Limited
3B) Consolidated Financial Results FY2017
GTPL – Consolidated Financial Results FY 2017 Highlights (IND AS)
FINANCIALSY-O-Y Revenue up by 27% ; INR 9417 mnY-O-Y EBIDTA up by 51% ; INR 2404 mnY-O-Y PAT up by 431% ; INR 400 mn
1
DIVIDEND Company Board Recommends Dividend of INR 1 (10%) per Share4
CATV2
Y-O-Y CATV Subscription Revenue up by 33% ; INR 4494 mnSeeded 1.48 mn STBs during the YearContinue to be No 1 MSO in Gujarat and No 2 in Kolkata & Howrah
BROADBAND3Y-O-Y Broadband Revenue up by 77% ; INR 1288 mn70k net addition of Subscribers during the yearARPU increase by 5.5% to INR 480 from INR 455 in FY16
37
Consolidated Financial Performance Trend (IND AS)
Revenue from OperationsINR MN
EBITDAINR MN
Total ExpenseINR MN
5,2886,272
7,443
9,417
FY'14 FY'15 FY'16 FY'17
1069
1506 1596
2404
FY'14 FY'15 FY'16 FY'17
42194766
5847
7013
FY'14 FY'15 FY'16 FY'17
37
Key Revenue Trends
38
CATV REVENUE (INR MN) (IND AS)
2,348
2,9993,378
4,494
FY14 FY15 FY16 FY17
BROADBAND REVENUE (INR MN) (IND AS)
179335
730
1,288
FY14 FY15 FY16 FY17
Consolidated Profit and Loss Statement
Particulars (INR MN) FY'17 FY'16 Y-O-Y GrowthRevenue
Subscription CATV 4,494 3,378 33%Broadband-ISP 1,288 730 77%Placement 2,375 2,668 -11%Activation 751 409 84%Other Income 509 258 97%
Total Income 9,417 7,443 27%Expenditure
Pay Channel Cost 3,821 3,277 17%Bandwidth Expense 422 237 78%Employee Cost 1,084 808 34%Other Operating Expense 471 612 -23%Administrative expense 1,215 913 33%
Total Expenditure 7,013 5,847 20%
EBIDTA 2,404 1,596 51%EBDITA % 26% 21% 5%
Depreciation/Amortization 1,394 1,072 30%Finance cost 580 445 30%
PBT 430 79 448%Share of Profit/(Loss) from Associates & JV (23) 2
Tax 145 44PAT before Minority Interest 262 37 611%
Less Minority Interest (141) (36)Add Other comprehensive income (3) 2PAT 400 75 431%
39
INDUSTRYOVERVIEW
COMPANYOVERVIEW
FINANCIALRESULTS
GROWTHSTRATEGY
ANNEXURE
40
Growth Strategy
41
31 73 125
192 80 77
155 187 89
128 100 162
75 172 198
247 150 70
79 129 189
27 Note: (1) VoD – Video on Demand, PVR – Personal Video Recording
BROADBAND
Deploy GPON technology
Offer cost-effective and high speed plans
Increase the reach of homes passed
Enter new cities and markets
CABLE TV
Focus on high quality digital offerings
Grow subscriber base in existing markets
Continue LCO partnerships
Enter new cities / markets with low competitive intensity
Immediate Growth Opportunities
42
CATV Ø TwothirdofSubbaseinPhase3andPhase4Ø MonetizationofPhase3andPhase4isexpectedinnext2yearsØ IncreasedHDofferingfrom37to64Channels.Toconvertpotential
subscribertoHDPackagesatincrementalARPU
BROADBAND Ø InGujaratCablereachingto4mnHHs,WestBengalreachingto1.53mn- ConvertpotentialHHsintoBroadbandSubscriber
Ø UpgradeandDeployGPONTechnologytoprovideHighSpeed,HighVolumeBroadbandServices.
INFRASTRUCURE Ø UtilizecurrentinfrastructureofCATVinBroadbandforbetterROI
43
Change in content pricing from wholesale to retail basis thereby empowering distribution platforms
ü Distributors can charge a maximum of INR 130 (ex-taxes)
per sub per month as network capacity fee(1)
ü Each additional 25 channel slab can be purchased at INR
20/sub/month
ü Distributor to also collect maximum of 20% of the pay
channel cost as distribution fees
1
ü Allows for complete pass through of pay channel
costs from broadcasters directly to end subscribers
ü Network capacity fee will now contribute
meaningfully to distributor’s revenue
Impact on MSOKey provision
ü Mechanism in place to settle fee-share related
disputes with LCOs
ü In case of failure of arriving at a MIA(2), MSO:LCO share of
the network capacity fee + distribution fee shall be split in the
ratio of 55:45 as per SIA(2)2
Notes: (1) For a capacity of 100 SD channels (One HD channel = 2 SD channel for computation)(2) MIA – Model Interconnection Agreement; SIA – Standard Interconnection Agreement
Recent TRAI Order Bodes Well for MSO
Onlycarriagefeeshavebeenregulated,placementandadvertisementfeeshavebeenkeptoutofregulation
FOR FURTHER QUERIES
44
DISCLAIMER
This presentation and the following discussion may contain “forward looking
statements” by GTPL HATHWAY Ltd (“GTPL” or the Company) that are not historical in
nature. These forward looking statements, which may include statements relating to
future results of operations, financial condition, business prospects, plans and
objectives, are based on the current beliefs, assumptions, expectations, estimates, and
projections of the management of GTPL about the business, industry and markets in
which GTPL operates.
These statements are not guarantees of future performance, and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond GTPL’s
control and difficult to predict, that could cause actual results, performance or
achievements to differ materially from those in the forward looking statements. Such
statements are not, and should not be construed, as a representation as to future
performance or achievements of GTPL.
In particular, such statements should not be regarded as a projection of future
performance of GTPL. It should be noted that the actual performance or achievements
of GTPL may vary significantly from such statements.
RavindraBhandariIRConsultantEmail:[email protected]:+919283614197
PiyushPankajHead– InvestorRelationsEmail:[email protected]
INDUSTRYOVERVIEW
COMPANYOVERVIEW
FINANCIALRESULTS
GROWTHSTRATEGY
ANNEXURE
45
Consolidated Balance Sheet FY 2017 (IND AS)
ASSETS (INR mn) As on 31st
March 2017 As on 31st
March 2016 LIABILITIES (INR mn)
As on 31st March 2017
As on 31st March 2016
Non-Current Assets EquityFixed Assets 11,135 9,648 Equity Share Capital 983 983 Financial Assets Other Equity 2,889 2,395
Investments 175 180 Total Equity 3,872 3,378 Other Financial Assets 139 198 Non Controlling interest 285 422 Deferred Tax assets 447 420 Non-Current LiabilitiesOther non-current Assets 233 224 Financial Liabilities
Total Non-Current Assets 12,129 10,670 Borrowings 3,416 2,525 Current Assets Other Financial Liabilities 0 1
Deferred Tax Liabilities 124 68 Inventories - - Other Non-Current Liabilities 1,900 1,468 Financial Assets Total Non-Current Liabilities 5,440 4,062
Trade Receivables 3,035 2,456 Current LiabilitiesCash and cash equivalents 1,062 858 Financial LiabilitiesOther Financials Assets 107 81 Borrowings 1,432 966 Current Tax Assets (Net) 142 27 Trade Payables 1,199 1,236 Other Current Assets 735 721 Other Financial Liabilities 651 1,206 Assets classified as held for sale - - Provisions and other current liabilities 4,331 3,544
Total Current Assets 5,081 4,143 Total Current Liabilities 7,613 6,951 Total Assets 17,210 14,813 Total Liabilities 17,210 14,813
46
Standalone Balance Sheet as on 30th September 2018(IND AS)*
*AsperLimitedReview
ASSETS (Rs. In Mn) As on 30th
September 2017 As on 31st March 2017
As on 30th September
As on 31st March 2016
LIABILITIES (Rs. In Mn.) As on 30th
September 2017 As on 31st March 2017
As on 30th September
As on 31st March 2016
Non-Current Assets EquityFixed Assets 6,279 6,212 5,877 5,540 Equity Share Capital 1,125 983 983 983 Financial Assets Other Equity 5,188 2,931 2,749 2,539
Investments 1,797 1,607 1,607 1,364 Total Equity 6,313 3,915 3,733 3,522 Other Financial Assets 80 54 46 42 Non-Current Liabilities Deferred Tax assets 97 216 590 279 Financial LiabilitiesOther non-current Assets 164 214 238 197 Borrowings 1,924 3,138 3,316 2,353
Total Non-Current Assets 8,417 8,304 8,358 7,422 Other Financial Liabilities 0 0 0 1 Deferred Tax Liabilities - - 299 -
Current Assets Other Non-Current Liabilities 1,424 1,450 1,937 1,237 Total Non-Current Liabilities 3,348 4,588 5,553 3,591
Inventories - - Current LiabilitiesFinancial Assets Financial Liabilities
Trade Receivables 3,867 3,013 3,472 2,450 Borrowings 695 994 1,202 586 Cash and cash equivalents 745 827 464 660 Trade Payables 952 553 1,157 818 Other Financials Assets 501 122 133 102 Other Financial Liabilities 133 503 22 998 Current Tax Assets (Net) 166 112 0 - Provisions and other current liabilities 2,721 2,268 1,581 1,879 Other Current Assets 483 442 839 376 Current Tax liability(Net) 16 19 Assets classified as held for sale - 971 Libilites associted with assets held for sale 589
Total Current Assets 5,762 4,517 4,908 4,560 Total Current Liabilities 4,518 4,317 3,980 4,869 Total Assets 14,179 12,820 13,266 11,982 Total Liabilities 14,179 12,820 13,266 11,982
47
Shareholder Analysis
48
KeyInstitutional Investors %Holding
ACACIABANYANPARTNERS 3.95%GOVERNMENTPENSIONFUNDGLOBAL 2.61%ASHISHKACHOLIA 2.23%PARVESTEQUITYINDIA 1.60%BNPPARIBAS 2.89%DANSKEINVESTMENT 1.45%VANTAGEEQUITYFUND 0.98%VITTORIAFUND 0.77%
MarketData Ason14.02.2018(BSE)
MarketCapitalization(RsMn) 18,893
No.ofsharesoutstanding(Mn) 112.5
FaceValue(Rs.) 10.0
52weekHigh-Low(Rs.) 190– 127
73.9%
26.2%
Dec- 17Shareholding
Promoter Public
Source– Company/BSEason31st December2017Source– BSE