HT MEDIA LIMITED Investor Presentation
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HT MEDIA LIMITED
Investor Presentation
1
Cautionary Statements
Certain statements in this presentation may be forward-looking statements.
Such forward looking statements are subject to risks and uncertainties like regulatory
changes, local political and economic developments, technological risks and many other
factors that could cause our actual results to differ materially from those contained in the
relevant forward-looking statements.
HT Media Group will not, in any way, be responsible for any action taken based on such
statements and undertakes no obligation to publicly update these forward-looking
statements to reflect subsequent events or circumstances.
Disclaimer: All external data used in the report have been taken from publicly available
sources and discrepancies, if any, are incidental and unintentional.
2Industry
3Growth Potential of Media & Entertainment (M&E) Industry in India
Ad spend (% of GDP)
0.9%
0.7%
0.8%
0.7%
0.8%
0.4%
0.5%
0.7%
0.9%
0.4%
0.3%
US Canada Australia Brazil UK Italy France Germany Japan China India
Print cover price (PPP USD per month)
21
11
33
29
20
29
25
29
20
6
6
US Canada Australia Brazil UK Italy France Germany Japan China India
Source: BCG-CII report, 2015
Huge scope in India backed by low penetration of advertising coupled with lower cover price and higher
GDP growth forecast
4Growth of M&E Industry in India : 2011 ~ 2021
Advertising revenue (Rs ‘000 Cr) Print ad revenue (Rs ‘000 Cr)
CAGR 12.0% CAGR 15.3% CAGR 7.6% CAGR 8.0%
108
30
93 28
25
80 23
22
69 19 20
60 18
53 16
47 14 15
41
36
30 33
2017P
2018P
2019P
2020P
2021P
2017P
2018P
2019P
2020P
2021P
2016
2011
2012
2013
2014
2015
2011
2012
2013
2014
2015
2016
CY CY
Source: KPMG India – FICCI, Indian Media and Entertainment Industry Report, 2017
The growth trajectory of M&E is set to accelerate with print forming 27% of the advertising pie
5Radio and Digital Ad Revenue Growth Projections : 2016 - 2021
Lowered Internet usage costs leading to Digital Ad revenue (Rs ‘000 Cr)
more frequent consumption
Digital
29
Developing digital infrastructure 8
CY 2016 CY 2021P
Operationalization of new stations in Radio Ad revenue (Rs ‘000 Cr)
existing and new cities
Radio
2016
5
2
Introduction of new genres
CY2016 CY 2021P
Source: KPMG India – FICCI, Indian Media and Entertainment Industry Report, 2017
Exponential growth expected in Radio and Digital
6Current Environment and Trends
• GDP softened in FY’17 to 7.1% after increasing continuously for 2 years
Macros
• CPI inflation on a downward trajectory from double digits in FY’14 to low single digit
• Gradual decline in interest rates over past 5 years
• Sensex on upward trajectory from ~18k to 31k over last 5 years
• Demonetization • Creation of Monetary Policy committee
Reforms
Recent
• GST (Goods & Service Tax) • Implementation of Insolvency and
• RERA Bankruptcy code
Despite recent hiccups, M&E industry still poised
for long term growth
• Government reforms in the longer term expected to boost the growth
• Lower Interest rate and lower inflation expected to continue
• Favourable demographics favouring higher consumption
• GST beneficial for long term
• Expectations that suppressed spends on advertising in recent times will
release in a big way going forward
• Strong rupee helps maintaining lower input cost
*Source: Bloomberg, BSE
7Overview of HT Media Group
8The HT Story – Enriching and Empowering India
2007
2000 2015
1924
5 new editions Radio license
2010 acquisition in
inaugurated by launched with Business newspaper
localization focus phase 3 spectrum
Mahatma Gandhi launched along with
auction
livemint.com and
foray into
1960 hindustantimes.com
education
2005 business;
Literary magazine HT Mumbai
launched launched HMVL IPO
1924 2005 2013 1992 1996 2000 2004 2015 2016
1964 2006 2013
Children’s
magazine
launched 2008 Management
1936 2004 Entry into Radio
school
HT Media business launched
Hindi daily Ltd listed Job and social
launched networking portals
launched
Our evolution is marked by building lasting and trustworthy businesses in print, radio, digital
and education sectors
9Strong Brand Portfolio across Segments
Content
Pan-India content distribution footprint across traditional and new age channels
10Large Consumer Base
4.5mn in India 304k in India 14.7mn in India
250k exclusive readers 8.1mn in UP & Uttarakhand
2.3mn in Delhi NCR
4.4mn in Bihar
1.4mn in Mumbai
1.3mn in Jharkhand
100mn
18mn
50mn
32mn 8.5mn
33mn
Source: IRS 2014, Google Analytics (March 2017), RAM data (Mar 2017) for 4 metros and estimates for 2 metros, radio listenership is excluding UP
11Financial Performance: Consistent Track Record
Consolidated Revenue (Rs Cr)
2,658 2,682
2,363 2,457
2,076 2,142
1,810
1,247 1,380 1,454
1,076
FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17
Consolidated EBITDA (Rs Cr)
528
475 479
422
366 362 376
289
205 214
102
FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17
Note: All figures are reported consolidated financials for HT Media Ltd
12Key Focus: Operational Excellence to Improve Profitability
Total Cost Productivity Zero Based Budgeting
• Activity Based Evaluation • Costs and revenue revisited
• Identification of Cost levers ab intio
• Process Efficiencies • Challenge all existing KPI’s
• Cost savings on Sustainable
basis
Yield Cost Restructuring
• Close monitoring • Complete revamp of cost
• Mix management structure across expense
• Maximise returns on limited heads
inventory • Achievement of the optimal
mix
Operating margin improved by 2.1% from FY’13 (17.6%) to FY’17 (19.7%)
We have delivered margin expansion on the back of continued focus on cost and yield
13Prudent Allocation of Capital
Key Investments in Recent Past
• Integrated Newsroom & Content Management System (CMS)
• Capacity and quality enhancement across Hindi markets
• Continued outlay on investment behind copies into relevant
markets
• Investment in digital assets
• Deepening reach in Radio markets through fresh licences
Convert profitable growth to cash efficiently and prudent allocation of capital to
drive shareholder returns
14Our Businesses
15Our Businesses
1 Print 2 Radio
English
#2 15 #1 #2
Hindi newspaper FM radio in Delhi for
daily of stations 350+ in Delhi #
Business India in all across India weeks*
segments
3 Digital 4 Education
Job
portal
6500+
Digital
Marketing
News
websites 215 MN Education Management Students
associated
pageviews@ tutorials School
with us
Movie
review
Average Issue Readership (IRS 2014)
* RAM data, 2017
# RAM data, Week 14,2017
@ Google Analytics, Mar 2017
161 Market Leadership across Brands
2 53% of
competition 1 2
1 2 3
1 20% ahead of Largest in 2nd largest in India’s no.1
2 competition Delhi Mumbai Trusted
Punjab NCR Punjab & Media
Uttarakhand
Chandigarh 2 83% of leader Chandigarh Brand*
Delhi
Uttar Pradesh Bihar 1 2 3
Jharkhand No.1 in No.1 in India’s no. 1
Mumbai Gangetic Belt Bihar and Trusted
2 1 46% ahead of Jharkhand Media Brand*
competition
1 20% ahead of
67% competition
of leader 1 2 3
51% 250k Ranked no.1
Old markets Readership Exclusive Media Brand#
Source of readership : IRS 2014, New markets from nccs a1 Readers
* Brand Trust Report India Story 2017, A study by TRA Research # Brand-o-meter Survey, pitch
Leadership position is an enabler for yield led growth
171 Print: Focused Segment Specific Strategy
Maintain copy leadership Focused deployment of copies to expand and
consolidate footprint
Higher wallet share in key markets
Persistent investment in copies in UP
Continued superiority on product offerings
Leveraging the #1 position in Bihar and
Customized customer centric solutions Jharkhand
Stature building through large brand Product excellence to drive differentiation
initiatives and salience
#1 in Pan India presence through
Unique product proposition leading to North
OneIndia alliance
strong loyalty with readers #1 in
East Overall readership is 1.5x of
Niche product segmentation targeting #2 in next largest competitor
Mumbai
higher yield from customers Dominant readership across
#1 in
South critical demographics : NCCA
Redesigned to broadsheet to gain better
AB and youth
revenue
Source of readership : IRS 2014
182 Radio: Expanding Reach and Listenership
159
117
93 99
78
• 18mn Listeners in 6 Metros
• Leader in Delhi, Mumbai and Kolkata
FY'13 FY'14 FY'15 FY'16 FY'17
Revenue (Rs Cr)
36.1%
26.3% 24.7% 25.1%
14.8% • 8.5mn listeners in Delhi and Mumbai
• First ‘Cool Retro’ Station of India with
music from 70-90s
FY'13 FY'14 FY'15 FY'16 FY'17
EBITDA Margin (%)
Source: RAM data (Mar 2017) for 4 metros and estimates for 2 metros
193 Digital: Growing Rapidly across Media Content and Internet
140 151
104
76
54
FY'13 FY'14 FY'15 FY'16 FY'17
Revenue (Rs Cr)
Media Content Internet
• Shine is 2nd largest Job Portal in
India
• 22mn candidates
Digital Quotient : Social & Mobile
marketing solutions
20Priorities Going Forward
• Improve leadership position in core markets
• Better monetisation of copies; yield led revenue growth
Print • Maintain cost focus to improve profitability
• Drive profitable growth of newly launched radio stations
• To outperform the industry on the back of innovation, execution, strong brand pull, quality
Radio content and great music
• Continue to strengthen digital capabilities and aim to grow revenue in this space in a
profitable manner
Other • Build education business to scale while maintaining operational profitability
businesses
Drive profitable growth with focus on margin expansion to create stakeholder value
21Thank You
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