INVESTOR UPDATE
THE ESSEL GROUP P2
ABOUT ZEE MEDIA INDIA'S LARGEST BOUQUET OF 14 NEWS CHANNELS. 11 DIGITAL PROPERTIES, 11 LANGUAGES 220+ million 60 million+ 45 million+ viewers monthly unique monthly unique P3 visitors visitors
OUR ASSETS 100,000+ Hours 540 Correspondents 43 News Bureaus 31 High-End Studios of Video Content & Stringers PAN India 27 DSNG Vans, 66 Backpack 300 ENG Cameras Units, 28 MOJO Kits P4
ZEE MEDIA SYNERGIES WITH ESSEL GROUP • Distribution Advantage • ZMCL channels are offered as a part of the Zee distribution bouquet of channels by Zee Entertainment Enterprises Limited to MSOs & DTH Operators • Access to Domestic Advertisers • Engaged in ad sales across TV, Print, DTH, Cable, and Digital platforms. • Benefits ZMCL with increased advertisement sales clientele due to cross / combined selling across media • 1,000+ Advertisers • International Sales • ZEEL’s international teams sell advertising spaces on behalf of ZMCL on its television and digital platforms • Digital Content Synergies • Diversity of news publishing platforms provides huge content repository • Access to 42 Million Households • Joint curation of events and programmes P5
WHAT DOES TV MEAN TO INDIA? TV continues to remain the most popular form of entertainment across all age groups P6 Source: Daily Time spent and Daily tune in on TV: BARC; Daily time spent per day with major media: eMarketer
TV SEGMENT PERFORMANCE: IMPROVING SHARE AND STICKINESS Highest time spent during Only channel other than Aaj Highest ATSV in the genre Highest ATSV in the genre 4 of last 6 quarters Tak to be No. 1 by share for for 8 consecutive quarters for 8 consecutive quarters 100 consecutive weeks 14 13 ATSV (in mins) Strong No. 2 channel by No. 1 by market share in Highest ATSV in the genre 12 market share for 3 years 11 Urdu news genre since for 5 consecutive quarters 10 launch in Jul’17 9 8 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Increasing stickiness P7 Source: BARC
STICKINESS OF CONTENT REFLECTED IN EARNING RATES Improving market shares and increasing stickiness of the channels (as highlighted in prior slide) resulting into changing trends of Earning Rates (ERs) of respective channels a. 7 out of 14 channels witnessed over 15% growth in ER in Q1 FY19 over corresponding quarter last year • 6 channels maintained the above trend during Q2 FY19 as well b. 4 out of above channels were Regional channels, reflecting the potential in regional markets c. Zee Salaam , that was launched last year achieved operational break even in last financial year itself d. Regional channels contributed positively to the EBIDTA, except for new launches last year with double digit growth observed in ERs in first half of the year for all these regional channels P8
HOW INTERNET WILL LOOK IN INDIA IN 2020? MORE INTERNET USERS FASTER BROADBAND SPEED 2015 327 M 5.1 MBPS 25% of India online 2020 603 M 12.9 MBPS 43% of India online MORE ‘SMART’ MOBILE MORE VIDEO TRAFFIC ON MOBILE CONNECTIONS 2015 61% 11% 54% 2020 83% Source: Cisco Visual Networking Index 2015-2020 P9
ZEE DIGITAL NEWS PUBLISHING HUB: DERIVING CONTENT SYNERGIES STRIVING TO MAKE THE WORLD A MORE INFORMED PLACE ZEEBIZ.COM WIONEWS.COM DNAINDIA.COM ZEENEWS.COM Investment guide and India’s Largest News India’s Global Voice on the News that builds perspective business advisor for mass Platform in Multi internet markets Languages THEHEALTHSITE.COM CRICKETCOUNTRY.COM BOLLYWOODLIFE.COM BGR.IN INDIA.COM Complete Health India’s #1 source of One stop shop for News and Brings out expertise Portal on Health, exclusive gadgets and everything Information and opinions of fans Fitness, Nutrition, gaming news and ENTERTAINMENT Gateway to India Lifestyle views P10
ZEE DIGITAL: AIMING TO ENGAGE AUDIENCE AT MULTIPLE TOUCH-POINTS MULTIPLE SEGMENTS AND MULTIPLE PLATFORMS ZeeNews.com Entertainment 1 10 • Multi-language content • Events / Movies Bookings • Memorabilia (Zee Studios) Travel 9 2 Ad Aggregation • Flights • Hotels • Bus / Car 8 3 Sports Zee Business • Memorabilia • Mutual Funds • Tickets • Insurance Internet users BGR.in 7 4 India.com • Gadgets/Mobiles • Art & Craft • Product Comparison Engine Hyperlocal Health • News 6 5 • Fitness Apps • Utility Payments / Recharges • Drug Recommendation • Wellness & Healthcare • Pharmacies • Education (Z Learn) • Patient Data • Services / Food P11
ZEE DIGITAL: HIGH GROWTH, STRONG POSITION AMONGST TOP 4 NEWS PUBLISHING GROUPS IN INDIA News/Information Sep-17 Sep-18 Growth% The Times Of India Sites 77.9 111.7 43% The Indian Express Group 55.9 77.8 39% NDTV 51.5 76.2 48% Zee Digital 49.1 69.1 41% India Today Group 63.0 67.3 7% Network 18 Sites 49.4 60.6 23% HT Media Group 47.2 57.3 21% ONEINDIA.COM Sites 36.7 43.0 17% Jagran Sites 36.5 38.1 4% Bhaskar Group Sites 41.8 32.8 -21% P12
ZEENEWS.COM: CHARTING EXPONENTIAL GROWTH TRAJECTORY Unique Users (millions) 40 35 34 35 32 31 31 29 28 30 25 25 24 23 25 22 22 22 21 20 19 20 16 13 15 10 9 10 5 0 P13 Source: comScore, Mobile + Desktop Users
ZMCL: INCREASINGLY DELIVERING EYE-BALLS TO ADVERTISERS Monthly Average Page Views Social Media Followers Q2 FY19 500 Million p.m. 45 Million Q2 FY18 350 Million p.m. Facebook Video Views Youtube Video Views 200 250 Million Million p.m. p.m. P14
FINANCIAL HIGHLIGHTS P15
BEATING THE INDUSTRY ADVERTISING REVENUE GROWTH ZMCL Advertising Revenues Television Advertising Revenues 9,000 400 8,250-8,500 368 8,000 350 335 304 7,000 6,500 300 267 6,000 243 250 5,106 Rs million Rs billion 5,000 200 3,952 4,000 3,300 150 3,000 100 2,000 50 1,000 0 - 2016 2017 2018P 2019P 2020P FY16 FY17 FY18 FY19-P FY20-P P16 Source: FICCI – EY Re-imagining India’s M&E sector Report, March 2018
IMPROVING PROFITABILITY TV Business - KPIs 7,000 24% 25% 23% 21% 6,000 20% 18% 5,735 5,000 14% 15% 4,498 4,000 4,405 4,346 4,221 3,626 3,566 3,543 3,000 3,352 3,234 10% 3,097 8% 2,466 2,000 5% 1,000 1,330 955 780 255 596 768 - 0% 2014 2015 2016 2017 2018 H1FY19 Operating Income 3,352 4,221 4,346 4,498 5,735 3,234 Operating Expenditure 3,097 3,626 3,566 3,543 4,405 2,466 Operating Profit 255 596 780 955 1,330 768 EBITDA Margin 8% 14% 18% 21% 23% 24% Operating Income Operating Expenditure Operating Profit EBITDA Margin EBITDA margin has improved from 8% in FY14 to 24% in H1FY19 P17 All figures in Rs. Mn.
WHOLISTIC GROWTH IMPROVED PROFITABILITY IN NATIONAL AS WELL AS REGIONAL CHANNELS National Channels Regional Channels 4,000 2,500 3,580 2,155 3,500 2,000 2,959 2,942 2,869 3,000 1,657 2,758 1,538 1,539 1,527 1,477 1,500 2,338 1,334 2,500 1,279 1,285 2,209 1,197 2,098 2,027 1,948 1,900 1,013 2,000 958 1,000 1,508 1,500 498 500 327 844 841 1,000 822 750 205 439 440 500 - 2014 2015 2016 2017 2018 H1FY19 - (184) (61) (248) 2014 2015 2016 2017 2018 H1FY19 (500) Operating Income Operating Expenditure Operating Profit Operating Income Operating Expenditure Operating Profit National Channels – Zee News, Zee Business, Zee Hindustan, WION (Q4FY17 onwards) Regional Channels also include new launches Zee Salaam, Zee 24 Kalak and Zee Uttar Pradesh Uttarakhand P18 All figures in Rs. Mn.
WHOLISTIC GROWTH REDUCING RELIANCE ON NATIONAL CHANNELS; UNLOCKING POTENTIAL OF REGIONAL PORTFOLIO 80% 70% 70% 70% 66% 66% 62% 60% 60% 50% 40% 38% 40% 34% 34% 30% 30% 30% 20% 10% 0% 2014 2015 2016 2017 2018 H1FY19 National Regional P19 National / Regional revenues as a percentage of total revenues
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