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Dish TV India LimitedInvestor Presentation
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.
Disclaimer
2
INR 976 BnTV industry size
INR 475 BnTV industry size
66%TV penetration (of total HHs) 62%
C&S penetration (of TV HHS)
Indian M&E Industry Snapshot
257 , 44%
475 , 46%
976 , 50%
175 , 30%
263 , 26%
387 , 20%
89 ,15%
126 ,12%
204 ,10%
66 ,11%
161 , 16%
397 , 20%
2009
2014
2019
M&E industry composition & size (INR bn.)
TV Print Films Others
2014
2019
231 270
301
134 169
197
101 140
169
2009 2014 2019
Total HHs TV HHs C&S HHs
Indian television market statistics (HHs mn.)
Source: M&E industry composition & size: FICCI-KPMG 2015, Indian television statistics & broadcasting and distribution industry : MPA Report 2014
2014 2019
Total households
83% 86%
CAGR of ~ 15.5% (2014-2019E)
301 Mn270 Mn
Total TV households 197 Mn169 Mn
Distribution industry
DTH28%
Analog Cable52%
DigitalCable20%
Broadcasting industry
Multiple broadcastersproducing content in
15 languagesacross
7 genresbeaming
~800 channels
3
Distribution Industry
4
Digital Addressable Systems - DAS
Source: *MPA Report 2014
Phase IDelhi, Mumbai,
Calcutta & Chennai30-June-2012
Phase II38 notified cities
31-Mar-2013
Cable Land grab seeding at throw away prices
No addressability/KYC
Working backwards to fill in the critical gaps; packaging, billing and dunning
DTH Opening up of cable stronghold markets
Bonus additions for the sector
Dish TV Higher incremental net adds; positive shift in subscriber
distribution
Rest of India31-Dec-2015/2016
Phase III/IV
Bulk of the potential DAS converts
Limited coverage by large MSOs due to dispersed population
Very high DTH recognition
DTH best suited considering terrain
Key target markets with more than 60% incremental potential for DTH
100%
100%
100%
100%
100%
100%
100%
91%
74%
52%
0% 50% 100%
Australia
Hong Kong
Malaysia
Singapore
New Zealand
Japan
Indonesia
Sri Lanka
Korea
India
Digital Penetration of Total Pay-TVSubscribers in India is Amongst the
Lowest *
5
Distribution Industry - Cable
Analog signal - limited carrying capacity, broadcasters jostling for PCS
Placement & Carriage fees - bulk of MSOs top-line
Massive under declaration – ignored to maintain MSOs ‘reach.’ Reason behind LCOs prosperity
No incentive to raise ARPUs
Digital signal - fatter pipe, larger carrying capacity
Placement fees mindset
B2B billing
100% postpaid. Element of bad debts?
Impairment of Set-Top-Box (STB)?
Increasing content cost
3 Tiered Structure
MSOs(more than 115 )
Distributors (at least 1 in each
locality)
LCOs (more than
50,000)
Pre-DAS
Post-DAS
6
Dish TV:Industry pioneer. Started operations in 2003. Part of the ‘Zee’ stable, largest producer and aggregator of Hindi programming in the worldTATA Sky:
Launched in 2006. JV between the TATA Group and News Corp
Sun Direct:Launched in 2007. JV between Sun Network and Astro, Malaysia
Reliance Digital:Part of Reliance Communication Ltd, a subsidiary of Reliance ADA group Airtel Digital:
Launched in 2008. Part of the telecom major Bharti Airtel.Videocon D2h:
Launched in 2009. Part of the white goods manufacturing Videocon group
Distribution Industry - DTH
2003
2006
2007
2008
2009
100% digital
Owns last mile subscribers
Subscription driven top-line
Fully prepaid, no bad debts
DTH contributes ~ 60% of the broadcaster’s domestic subscription revenue; scope for rationalization vs. cable
Heavily taxed:• License fees – 8% AGR instead of 10%
GR (TRAI recommendations on issues related to new DTH licenses)
• Entertainment tax & Service tax - to be subsumed post rollout of GST
Fully tax compliant
2008
7
DTH Players in India
8
Promoter of the ‘Essel’ Group of companies
India’s media mogul and founder of ‘Zee’, India’s first satellite television channel in 1992 & later India’s first private news channel, Zee News
A self-made man, has consistently demonstrated his ability to identify new businesses and lead them on the path to success
Other business interests; education, theme parks, wellness
Dr. Subhash Chandra - Non Executive Chairman
Jawahar Lal Goel - Managing Director
Key architect in creation and expansion of Essel Group of Companies
Key architect of cable TV services, established ‘Siti Cable’ in 1994
Pioneered the DTH services in India and has been instrumental in establishing Dish TV
Past president of IBF for four consecutive years upto 2010
An active member on the Board of various committees set up by MIB, for addressing critical industry matters
R.C. Venkateish - CEO
India and South Asia MD of ESPN Star Sports prior to joining Dish as its CEO
Past President of DTH Operators Association
More than 27 years of experience & a successful track record in turning around businesses for brands like Oral-B, Nestle and Kellogg’s
65%
8% 13%3%
11%
PromotersGDR; held by Apollo PE, USAFIIFin. Inst., Banks & MFOther Investors
Shareholding pattern*
*Shareholding pattern as on 31st March 2015
Key Managerial Personnel
9
20
10
20
09
20
12
20
12
20
13
20
03
20
07
20
14
First DTH in
India
First to launch online TV for
DTH viewers –‘Dish Online’
First to launch a sub-brand
targeting regional language markets–
‘Zing’
First to negotiate
content on a fixed fee basis
First to launch Live TV for
moving vehicles
First to launch High
Definition
First to achieve operational
break-even in the Indian DTH
industry
First to offer unlimited recording
First to be FCF positive in the
Indian DTH industry
20
15
First to be PAT positive in the
Indian DTH industry
Many Firsts To Its Credit
10
91%
3%3%
2%
1%
Subscription revenues
Lease rent
Bandwidth income
Advertising income
Other income
Consolidated revenues
29%
15%
10%
6%
5%
4%4%
Programming and other cost
Selling and distribution expenses
License fees
Other operating costs
Transponder lease
Other expenses
Employee benefit expenses
Consolidated expenses
100% prepaid
Upfront subsidy on consumer premises equipment
(CPE)
Average ARPU of Rs. 179
Churn at 0.7% p.m.
Implied average subscriber life of 12 years
Dish TV India Limited
Business Model
11
P&L structure – FY15
EBITDA margin - 26.4%
Dish TV vs. Competition
Highest transponder capacity Maximum content tie-ups & true HD channels Widest dealer-distributor network
720 TP
Bandwidth (MHz)
No. of Transponders
16
Dish TV
432
12Tata Sky
396
11Airtel
324
9Reliance Digital
432
8Videocon
216
4+2Sun Direct
215
243
321
352
368
398
Sun Direct
Rel. Digital
Tata Sky
Airtel
Videocon
Dish TV
Linear Channels
12
11
27
25
29
40
True HD Channels
Zonal offices6
Regional offices 14
Source: Company & market data as on 31st March 2015
12
Key Metrics - Annual
Source: Company;
Note : * ARPU & SAC taken as Q4 data for respective years. # Market share based on gross subscribers as on 31st March, 2015 as per market estimates
131 132 138 150 151
157 163
179
0
50
100
150
200
250
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
ARPU* (Rs.)
27%
23%
8%2% 20%
20%
Dish TV Tata Sky Sun Direct Big TV Airtel Digital Videocon D2h
Market share #
2,035
2,505 2,383 2,224 2,127
1,996 1,800 1,725
0
400
800
1200
1600
2000
2400
2800
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
SAC* (Rs.)
2.5
4.3 5.7
8.5 9.6
10.7 11.4
12.9
0
5
10
15
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Net subscriber base (mn.)
13
Key Metrics - Annual
Note : * Including prior period items
(2,050) (1,220)
1,570
3,607
5,860 6,306 6,240 7,331
-4000
-2000
0
2000
4000
6000
8000
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
EBITDA (Rs. mn.)
71%
59%52%
42%36% 34% 34% 31%
0%
10%
20%
30%
40%
50%
60%
70%
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
3,288 5,897
8,353
11,927
16,639 19,228
22,681 25,436
-
5,000
10,000
15,000
20,000
25,000
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Subscription revenue (Rs. mn.)
Programming and other costs as % of subscription revenues
(4,141)(4,807)
(2,622)
(1,920)(1,331)
(660)(1,576)
31
-5500
-4500
-3500
-2500
-1500
-500
500
1500
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Net profit/(loss) (Rs. mn.)
14
*
Key Metrics - Quarterly
0.226
0.416 0.404
0
0.1
0.2
0.3
0.4
0.5
4QFY14 3QFY15 4QFY15
Net subscriber additions (mn.)
163 177
179
0
50
100
150
200
4QFY14 3QFY15 4QFY15
ARPU (Rs.)
5,488 6,554 6,828
0
2000
4000
6000
8000
4QFY14 3QFY15 4QFY15
Subscription revenue (Rs. mn.)
1,289
1,912 2,219
20.2%26.8% 29.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
0
500
1000
1500
2000
4QFY14 3QFY15 4QFY15
EBITDA (Rs. mn.) & EBITDA margin
(1,490)
(29)
350
-2000
-1500
-1000
-500
0
500
4QFY14 3QFY15 4QFY15
Net profit (Rs. mn.)
702
0
200
400
600
800
4QFY15
FCF (Rs. mn.)
15
Strategy and Outlook
16
Zing - Phase III & IV Markets
Zing DigitalLaunched in 8 regional market
18%
9%
31%
17%
1%2%
12%
10%
Viewership share by genre – 2014*
Regional GECs,Regional News, Movies & MusicHindi GECsHindi News & MoviesEnglish Entertainment & NewsSportsMusic, Kids & InfotainmentOther
Zing Digital
Sub Brand of Dish TV
Regional first; regional language channels ,
regional look and feel
Regional first national second; unlike
mainstream brands
Customized regional content in digital
picture quality and stereophonic sound
Value for money offering; Digital quality
picture at cable price
Healthy gross margin
After successful launch in seven states,
Zing introduced in ‘Tamil Nadu’
Source: * FICCI Frames - 2015
17
3 HD ADD-ONS
Game on HD @ Rs. 135(Sports and Hindi entertainment)
Life on HD @ Rs. 185(English entertainment with Sports and Hindi
Entertainment)
Full on HD @ Rs. 210(Complete dose of entertainment)
Dish TV Tata Sky Videocon D2h
Sports Channels
Super Family + Game on HD
Dhamal Mix + HD Access Fee
Super Gold + HD Access Fee
Rs. 375 Rs. 355 Rs. 356
Star Sports HD1 √ x x
Star Sports HD2 √ x x
Sony Six HD √ x x
Ten HD √ x x
Box Cost Rationalization
HD Focused Content Deals
Compelling HD Proposition
High Definition
Source: Market data as on 31st March 2015
18
200255
380
220280
400
220
300
421
230 275320
440
240285
335
460
250295
345
470
0
100
200
300
400
500
Super Family Maxi Sports # All Sports Platinum Sports
Previous price Revised price (w.e.f. April'13) Revised price (w.e.f. June'14) Revised price (w.e.f. August'14) Revised price (w.e.f. Feb.'15) DAS Ph I&II cities (Feb'15 & May'15)
Pack price hike - SD (Rs.)
0%10%20%30%40%50%60%70%80%90%
100%
0.0% 0.2% 0.4% 0.6% 0.8% 1.0%
Pakistan
KoreaTaiwan
India
China
Sri LankaThailand
Vietnam
Malaysia
Philippines
Japan
Indonesia
Australia
New Zealand
ARPU as a % of GDP per HH*
Pay-TV ARPU as a % of PPP-adjusted GDP per Household
% P
ay-T
v Pe
n./
TV H
H
Source: * MPA Report 2014
# “Maxi Sports” pack @ Rs. 275 introduced with effect from August’14
19
ARPU Expansion
23, 70%3, 9%
7, 21%
DTH revenue Cable TV revenue IPTV revenue
151
579
976
122
435
730
22 54 133
7 90 113
-
200
400
600
800
1,000
2008 2014E 2020E
Pay TV Subs DTH Subs Cable Subs IPTV Subs
International Expansion - Sri Lanka
Sri Lanka
Population ~ 20 million
TV penetration at 77%
High digital penetration; 90% of total Pay TV subscribers
DTH maintains dominance with ~ 72% market share. Cable, distant second despite being 4 years older
ARPU ~ USD 7 pm
Zero subsidy on CPE sales
Source: MPA 2014
Pay TV industry revenue (USD mn.)
Pay TV subscribers (000)
20
Financials
21
4QFY 2014 vs. 4QFY 2015Quarter
ended Quarter
ended
Rs. million Mar. – 2014 Mar. – 2015
Operating revenues 6,369 7,547
Expenditure 5,080 5,328
EBITDA 1,289 2,219
EBITDA margin (%) 20.2 29.4
Other income 201 137
Depreciation 1,491 1,550
Financial expenses 326 455
Profit / (Loss) before prior period & tax (327) 350
Prior period items (1,164) -
Tax expense/(write back) - -
Net Profit / (Loss) for the period (1,490) 350
Variance(4QFY14 vs.4QFY15) in %
6,828
173
305 156 85
Subscriptionrevenue
Lease rentals
Bandwidthcharges
Advertisementincome
Teleportservices, CPE &Other
Operating revenue break-up (Rs. mn)
4QFY - 2015
18.5%
4.9%
72.1%
31.8%
4.0%
39.6%
Summarized Standalone P&L - Quarterly
22
FY 2014 vs. FY 2015FY 2014
(Audited) FY 2015
(Audited)
Rs. million Mar. – 2014 Mar. – 2015
Operating revenues 25,090 27,816
Expenditure 18,849 20,485
EBITDA 6,240 7,331
EBITDA margin (%) 24.9 26.4
Other income 649 635
Depreciation 5,974 6,138
Financial expenses 1,327 1,754
Profit / (Loss) before prior period & tax (412) 74
Prior period items (1,164) -
Tax expense/(write back) 0.5 42
Net Profit / (Loss) for the period (1,576) 31
Variance(FY14 vs.FY15) in %
25,436
810
810 417
345 Subscriptionrevenue
Lease rentals
Bandwidthcharges
Advertisementincome
Teleportservices, CPE &Other
Operating revenue break-up (Rs. mn)
FY - 2015
10.9%
8.7%
17.5%
2.2%
2.7%
32.2%
Summarized Consolidated P&L - Annual
23
FY14 vs. FY15
Rs. million FY 2014 (Audited) FY 2015 (Audited)
EQUITY AND LIABILITIES
Shareholders’ funds
(a) Share capital 1,065 1,066
(b) Reserves and surplus (4,191) (4,199)
(3,126) (3,134)
Non-current liabilities
(a) Long-term borrowings 7,791 -
(b) Other long term liabilities 918 183
(c) Long-term provisions 142 66
8,851 248
Current liabilities
(a) Short-term borrowings 658 479
(b) Trade payables 1,357 1,268
(c) Other current liabilities 11,601 22,130
(d) Short-term provisions 8,361 10,671
21,977 34,548
Total 27,702 31,663
Consolidated Balance Sheet
24
FY14 vs. FY15
Rs. million FY 2014 (Audited) FY 2015 (Audited)ASSETSNon-current assets
(a) Fixed assets(i) Tangible assets 13,495 14,428(ii) Intangible assets 76 111(iii) Capital work-in-progress 4,226 4,972
17,797 19,510(b) Non-current investments 1,500 2,000(c) Long-term loans and advances 806 839(d) Other non-current assets 149 167
2,454 3,006Current assets
(a) Current investments 500 -(b) Inventories 75 99 (c) Trade receivables 415 637 (d) Cash and bank balances 3,426 4,286(e) Short-term loans and advances 2,984 3,909(f) Other current assets 50 216
7,451 9,147Total 27,702 31,663
Consolidated Balance Sheet (continued)
25
Annexure
26
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 Dr. Subhash Chandra
Group Market Cap ( Listed entities under Essel Group ): Rs 470 bn(1)
Source: Company websites, BSE, MPA Report 2014
Note: (1) Market capitalization as on 1st June, 2015
Market Cap: Rs 308.3 bn(1) Market Cap: Rs 8.5 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 109.7 bn(1) Market Cap: Rs 23.7 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 20.2 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
Essel Group
27
Oct 03:Received license to operate DTH Services
2003 2006 2007 2008 2009 20112010
Growth Trajectory Since Listing
Asia’s Largest DTH ProviderCompany Profile
Net Customer Base
Total Revenues
EBITDA (% margin)
Market Capitalization(3) ~ Rs 109.7 billion
First Indian DTH player
< 3.0 million
Rs 4,162 million
(Rs 2,095 million)
~ Rs 21.1 billion
2008(1) 2015(2)
Jan 09:Rights offering of shares for ~Rs. 11.4 bn.
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 2014
Notes:
(1) 2008 reflects FY 2008 year end results
(2) Total Revenues and EBITDA for 2015 reflect FY2015 year end results. Customer base as of March 31, 2015
(3) 2008 market capitalization as on March 31, 2008; 2015 market capitalization as on June 1, 2015
Apr 07:Listing of Equity Shares on NSE and BSE
2004 2005 2012
12.9 million
Rs 27,816 million
Rs 7,331 million (26.4%)
2013
First full year of
Positive FCF
2014
- Full year of Positive FCF
- Launch of “Zing”
Key Milestones and Performance
28
2015
First full year of
PAT Positive
Thank You
29
