Hathway Cable & Datacom Ltd. · NSE:HATHWAY
Hathway Cable & Datacom — Investor Presentation (September 2018)
40 slides from Hathway Cable & Datacom's investor presentation, Sep 6, 2018
Slide 1: Intimation of Investor Presentation to stock exchanges
hathw@y Date: September 6, 2018 To, To, BSE Limited National Stock Exchange of India Limited The Corporate Relationship Department, Listing Department P J Towers, Dalal Street, “Exchange Plaza” Mumbai - 400 001. Bandra Kurla Complex BSE Security Code: 533162 Bandra (E), Mumbai — 400 051 NSE Trading
Slide 2: Hathway Cable and Datacom Limited Investor Presentation – August 2018
Hathway Cable and Datacom Limited Investor Presentation – August 2018 1
Slide 3: Company Overview
Company Overview 2
Slide 4: Company Overview
Company Overview • Hathway Cable & Datacom Limited (Hathway) promoted by Raheja Group, is one Consolidated Revenue* (INR Mn) & of the largest Multi System Operator (MSO) & Cable Broadband service providers in EBITDA Margin (%) India today. 20,000 30.0% 22.3% 15,000 16.2% • The company’s vision is to
Slide 5: Group Structure
Group Structure Broadband Business • Parent Company Hathway Cable & Datacom Limited CATV Business* • Hathway Digital Private Limited^ (100% Subsidiary) (HCDL) Strategic Investment • GTPL Hathway Limited# (37.32% Equity Holding) * CATV Business includes JVs/Associates/Subsidiaries * 5 subsidiaries co
Slide 6: Growth Strategy
Growth Strategy Leverage Trendsetter in broadband and Differentiated broadband industry Cable Television Objective customer on speed, GBs, Price presence to give experience & Value For Money differentiated Build Value for all equation content, services and stakeholders in the applications Value chai
Slide 7: Consolidated Financial Trends
Consolidated Financial Trends FY18 performance (Consolidated) • Total Comprehensive Income (PAT) : INR (1,052) Mn; Losses reduced by 880 Mn Y-o-Y(+46% Y-o-Y) • Total Income: INR 15,444 Mn; Increase by 1,762 Mn Y-o-Y; Y-o-Y Growth: (+13%) • Operating EBITDA : INR 3,360 Mn ; Increase by 1,393 Mn Y-o
Slide 8: Financial Trends – HCDL + HDPL
Financial Trends – HCDL + HDPL Comparable Revenue (INR in Mn) Comparable EBITDA (INR Mn) 961 1,040 3,923 4,002 867 916 3,759 3,845 765 3,487 3,656 645 3,405 598 3,234 471 3,045 389 Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 Q1-FY18 Q2-FY18 Q3-FY18 Q4-FY18 Q1-FY19 Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 Q1-FY18 Q2-FY18
Slide 9: Hathway at a Glance
Hathway at a Glance Broadband 30% 42% 34% 5.5 Mn 200 MBPS Upto 1 TB 3 Year CAGR in Operating 3 Year CAGR in Broadband homes Maximum speed Data offered Broadband EBITDA Margins Broadband passed and offered to its with average Revenue Subscribers presence in 16 cities consumption of customers (4 metro
Slide 10: Leadership
Leadership Board members Experienced management team with strong track record Rajan Gupta – Managing Director – IIM Bangalore alumni with over 20 years of experience in blue chip Sridhar Gorthi companies. Worked with Asian Paints, Coca Cola and Tata Tele Services in leadership role. Chairman & Indep
Slide 11: Geographical Presence
Geographical Presence Strong market share in important regional cable markets in India Haryana Faridabad |Gurgaon | Panjpat Uttar Pradesh Delhi NCR Allahabad | Ghaziabad | Noida And 3 other cities Madhya Pradesh Bhopal City | Gwalior | Indore City Sikkim And 11 other cities Gangtok West Bengal Rajas
Slide 12: High Quality Infrastructure
High Quality Infrastructure Advanced technology and equipment provided by Leading Technology Vendors leading technology vendors STBs (SD & • Overground: 35,000 Kms HD) • Underground: 500 Kms Head-ends/ • Leased: 4,000 Kms Compression Optic Fibre Cable Network Modems • 6 Primary Headends and 7 Second
Slide 13: GTPL Hathway Limited
GTPL Hathway Limited Advanced technology and equipment provided Strong Market Share in regional cable markets in India by leading technology vendors Key Highlights Q1-FY19 • Overground: 20,000 KMs #1 67% Present in 500+ towns across 11 states • Underground: 1,500 KMs MSO in Gujarat Market Share • GU
Slide 14: Broadband Business
Broadband Business 13
Slide 15: Broadband Business Overview
Broadband Business Overview • Hathway holds a “Category-A” PAN India ISP license and was the Consolidated Broadband Revenue (INR Mn) first cable television services provider to offer broadband Internet 4,955 5,445 services. 3,234 1,298 • The company is India’s largest cable broadband services provid
Slide 16: Broadband – Value Chain
Broadband – Value Chain Bandwidth Backbone Hathway NOC / Data Centre Content Peering / Caching Local Loops and Fibre Optic ring Routing and switching BSS and OSS Engine infrastructure from Tata, Bharti, engine for Bandwidth and Billing / Customer provisional Vodafone and / or Hathway to connect to P
Slide 17: Broadband – Competitive Advantage
Broadband – Competitive Advantage Final Output Technology / Customer / Service Infrastructure Maximum speed is up to • DOCSIS 3.0 and 3.1 – pioneers in • R Madhavan as brand ambassador 300 Mbps launching high-speed 100 Mbps • Partnering with various content broadband. providers, education portals an
Slide 18: Customer Segmentation
Customer Segmentation • In last 12 months 0-20 GB consumers have gone down from 23% to 6% of customer base, This is both due to increase in data consumption as well as loss of this low usage segment to low price plans of mobility. On the other hand >80 GB consumers have increased from 24% to 54% of
Slide 19: Broadband Unit Economics
Broadband Unit Economics Revenue (INR) Cost (INR) Investment per Subscriber (INR) Particulars INR / Unit % Particulars INR / Unit % Particulars INR / Unit Consumer Price 826 118% Break-up of Cost Cost per Home Pass 600 GST 126 18% Bandwidth and 63 9% Penetration 20% leaseline cost NET REVENUE 700 10
Slide 20: Quarterly HCDL Income Statement
Quarterly HCDL Income Statement Income statement (INR Mn) Q1-FY19 Q4-FY18 Q-o-Q Growth Q1-FY18 Y-o-Y Growth FY18 Subscription Broadband 1,298 1,457 (11)% 1,290 1% 5,445 Total Income 1,298 1,457 (11)% 1,290 1% 5,445 Employee Cost 120 111 8% 89 35% 419 Other Expenses 625 707 (12)% 708 (12)% 2,755 Tota
Slide 21: HCDL Balance Sheet
HCDL Balance Sheet Statement of Assets and Liabilities (INR Mn) Standalone As on 31.03.18 As on 30.09.17 As on 31.03.17 1.Shareholder’s Funds a. Equity Share Capital 1,661 1,661 1,661 b. Other Equity 8,878 8,528 8,089 Sub Total – Shareholder’s funds 10,539 10,189 9,750 2. Non-current liabilities a.
Slide 22: Cable Television
Cable Television 21 21
Slide 23: Cable Television Business Overview
Cable Television Business Overview • Hathway offers its cable television services across 350+ cities and major Consolidated Total Cable television Revenue (INR Mn) towns, operating in geographical regions which constitute important markets for advertisers and broadcasters. • Hathway is one of India’
Slide 24: Cable TV – Overview
Cable TV – Overview Cable television STBs (Mn) Cable television Exit ARPU (INR) Phase I Phase II 1.6 Phase I Phase II Phase III Phase IV 2.4 105 108 102 108 102 95 70 75 55 58 50 Phase IV 0.9 Phase III 2.3 FY17 FY18 Q1-FY19 Dominant Market Share in Key Geographies HD Subscribers (‘000) Hathway Other
Slide 25: Cable TV – Value Chain
Cable TV – Value Chain Broadcast Processing & Transmission Consumption Consumption MSO – Major Digital Headend Satellite signal receiver + encoders Downlink SDI IRD Encoder SDI IRD Encoder IP IRD Encoder Primary Secondary Subscribers Subscribers Uplink from IRD IP Encoder Broadcasters CAS • NDS Mult
Slide 26: Cable TV – Competitive Advantage
Cable TV – Competitive Advantage Final Output Customer / Technology / Infrastructure Service Digital subscribers at • Hathway Connect enables LCOs to manage • Offering innovative packages as their network independently & transparently. per regions served. 7.2 Mn in 2017 • Subscribers can access thei
Slide 27: Hathway Offers the largest HD Bouquet
Hathway Offers the largest HD Bouquet Number Of Channels 96 89 60 64 60 54 55 49 28 MSO 4 MSO 3 MSO 2 MSO 1 DTH 1 DTH 3 DTH 2 DTH 4 Distribution Platforms Source : Respective MSO & DTH Websites 26
Slide 28: TRAI’s new tariff order
TRAI’s new tariff order TRAI’s new tariff order • TRAI’s proposed regulatory changes on tariff may drive structural change in the entire value chain (Broadcaster – Distributor – Consumer). • Broadcasters with strong franchise will benefit from higher subscription and ad revenue. • Distributors’ busi
Slide 29: TRAI Tariff Impact Analysis
TRAI Tariff Impact Analysis Key Provisions Particulars Present New Tariff order • Distributors can charge a maximum INR 130 Content, Bundled Price for bouquet of Channels will be offered at a-la- (ex taxes) per sub per month as network Carriage & channels with discount up to 90% on carte price (MRP)
Slide 30: Quarterly HDPL Income Statement
Quarterly HDPL Income Statement Q-o-Q Y-o-Y Income statement (INR Mn) Q1-FY19 Q4-FY18 Q1-FY18 FY18 Growth Growth Subscription CATV 1,576 1,526 3% 1,325 19% 5,734 Placement 752 748 1% 702 7% 2,971 Activation 176 227 (22)% 243 (28)% 964 Other operating income 43 44 (5)% 96 (56)% 225 Total Income 2,547
Slide 31: Financials
Financials 30 30
Slide 32: FY18 Financial Highlights
FY18 Financial Highlights Income statement (INR Mn) FY18 FY17 FY16 Y-o-Y Consolidated CATV Subscription 5,733 4,728 3,804 21% Broadband Revenue 5,445 4,955 3,234 10% Placement 2,977 2,725 3,220 9% Activation 964 825 834 17% Other Operating income 227 211 276 8% Other Non operational income 98 238 18
Slide 33: FY18 Financial Highlights
FY18 Financial Highlights Statement of Assets and Liabilities (INR Mn) Consolidated FY18 FY17 FY16 A. Equity and Liabilities 1.Shareholder’s Funds a. Share Capital 1,661 1,661 1,661 b. Reserves and Surplus 6,263 7,267 9,227 Sub Total – Shareholder’s funds 7,924 8,928 10,888 2. Minority Interest (39)
Slide 34: Historical Financial Charts
Historical Financial Charts Standalone Revenue (INR Mn) Standalone EBITDA & Margins (INR Mn) Consolidated Revenue (INR Mn) iGAAP IND-As iGAAP IND-As iGAAP IND-As 27.3% 24.4% 18,587 15,517 19.4% 17.1% 19.6% 15,934 15,444 13,305 13,682 10,381 11,209 14.8% 9,878 11,482 11,550 6,678 1,822 1,913 1,540 1,
Slide 35: Capital Market Information
Capital Market Information Share Price Performance 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Hathway BSE Sensex Price Data (30th June, 2018) INR Shareholding Pattern (30th June, 2018) Face Value 2.0 Public M
Slide 36: Disclaimer
Disclaimer Hathway Cable and Datacom Ltd Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation tha
Slide 37: Thank You
Thank You 36 36
Slide 38: Abbreviations
Abbreviations APRU Average revenue per user CAS Conditional access system DTH Direct-to-home DVR Digital video recorder DTT Digital terrestrial TV xDSL Digital subscriber lines FTA Free-to-air TV FTTx Fiber-to-the-x, which refers to broadband network architecture that used optical fiber to provide l
Slide 39: Key Milestones
Key Milestones Promoter funding Acquired 2 lakh Providence Preferential allotment of Introduced and launch Cable television Acquired Equity INR 4.5 Bn to GPON FTTH high Primary 50% stake in acquires Capital speed internet subscribers GTPL NewsCorp Research & services stake Cable television Tybourne
Slide 40: Awards and Accolades
Awards and Accolades Year 8 Times 2011 2013 2015 2015 2016 2016 2016 Star News Brand Economic Times Indian Telly Aavishkar Aavishkar LACP Aavishkar Organized by Excellence Euromoney Best Tech Brand Awards Media Group Media Group Vision Awards Media Group Awards Award Most Outstanding Contributing Be
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