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ABP Circulation Sales Weathering the storm Playing for victory 1 Agenda Context Strategy and initiatives Impact 2 Agenda Context Strategy and initiatives Impact 3 ABP – a leading multimedia group in India Television Channels Dailies Radio Training institute Digital Bengali magazines English magazine Publishing 4 Print has been the mainstay of the group • 2 Bengali Dailies and 1 English Daily • Readership of over 7 million per day • 60% market share 5 Print advertising revenues have been under pressure Print advertising revenues, $ billion 3.1 . Advertising revenue growth 2.1 over the last 5 years: 7.7% CAGR . Inflation: 7-8% 2011-12 2016-17 Source: FICCI, KPMG Media report 2017 6 Circulation sales has remained flat Circulation sales, Million copies per day . Circulation sales 2.5 2.3 CAGR over 5 years: 1-1.5% only . Largely driven by new entrants and duplicated buying . Otherwise marginally declining market 2011 2016 Source: Audit Bureau of Circulation, India 7 Agenda Context Strategy and initiatives Impact 8 4 Strategic initiatives to weather the storm 1. Compress costs by making operations lean 2. Renew and reinvent core print operations 3. Establish leadership position in TV business 4. Invest meaningfully in digital for the future 9 4 Strategic initiatives to weather the storm 1. Compress costs by making operations lean 2. Renew and reinvent core print operations 3. Establish leadership position in TV business 4. Invest meaningfully in digital for the future 10 Lean operations FTE rationalization • Productivity and 3000 25% process improvement 2300 • Senior level restructuring • Role restructuring Before After • Process automation rationalization rationalization 11 Organizational changes 1. Changes in structure and staffing of editorial team 2. Changes in structure and staffing of circulation sales team 3. Modified performance management systems 4. State-of-the-art capability building program 12 Fundamental changes in editorial team structure Before After Chief Editor Chief Editor Anandabazar Editor - Patrika – Editorial Anandabazar section heads Patrika Editorial section heads The Telegraph – Editorial section Editor - The heads Telegraph Editorial section heads Ebela – Editorial section heads Editor - Ebela Editorial section heads 13 4 Strategic initiatives to weather the storm 1. Compress costs by making operations lean 2. Renew and reinvent core print operations 3. Establish leadership position in TV business 4. Invest meaningfully in digital for the future 14 Revamping the mother brand - Anandabazar Patrika Larger masthead Pointers to . Redesigned first page news in inside pages . Sectionalized paper - city, state, national, News in international, sports, brief business, editorial . Large number of snippet news items More front page . Wide variety of news articles supplements every day of the week 15 Hyperlocal reach that TV cannot match . 13 different editions across the state of West Bengal . For readers . Hyperlocal content . For advertisers . Reach into the high growth, non-metro markets at fractional cost . Hyperlocal advertising options 16 Product portfolio to serve the entire consumer lifecycle ABP ABP Anandabazar Patrika School edition Karmakshetra edition Ebela (1922) (2016) (2016) (2012) Students Job seekers Early professionals/ And beyond youth 17 Life development program to build a deep bond with readers Shift from a Transactional to a Relationship-based bond with the reader – addressing the typical issues and pain- points in a consumer’s life to build loyalty Niche content Curated Digital/ Mobile through workshops content supplements Benefits for the subscriber of The Telegraph Access to Print Radio and TV events engagement programs 18 Investment in knowing and developing the audience Proprietary method to develop customer intelligence Multiple routes to develop and engage current and future Exact geographical location of audience customer households • Content + Customer details: Name, Phone number, Address, Pincode • Print combined Vendor details: Name, phone with digital number • Stories from archives • And more 19 Power of alliance – One India . Alliance between 3 of the leading media groups in India – ABP, HT and Hindu . One India = 2 times the reach of the single largest print media group, at a much lower CPT (cost per thousand readers) . 10x growth in revenue in 3 years 20 ABP One . One stop 360-degree marketing solutions for clients . Leveraging the ABP group’s multimedia reach . Customised solutions . Outcome-based, market share linked deals 21 4 Strategic initiatives to weather the storm 1. Compress costs by making operations lean 2. Renew and reinvent core print operations 3. Establish leadership position in TV business 4. Invest meaningfully in digital for the future 22 Bouquet of news channels in 5 languages Punjabi – Punjab Gujarati - Hindi – All Gujarat India Bengali – Weekly West Bengal unique reach Marathi - of 166 mn Maharashtra viewers Source: BARC, All India 23 Leadership position across all channels Viewership market share 17% Hindi 39% Gujarati 14% 28% . Market leader in 2 out of 4 13% markets 10% . Close 2nd in the No. 1 ABP News No. 3 No. 1 ABP No. 3 player player player Asmita player remaining two Bengali Marathi 39% 30% . On an average, 28% 30% 30%+ market share in regional markets 15% 10% ABP No. 2 No. 3 ABP No. 2 No. 3 Ananda player player Majha player player Source: BARC; Punjabi channel yet to be launched 24 4 Strategic initiatives to weather the storm 1. Compress costs by making operations lean 2. Renew and reinvent core print operations 3. Establish leadership position in TV business 4. Invest meaningfully in digital for the future 25 Online matrimony business . Unique proposition – photo ID verified profiles . Strong growth . 200,000 profiles – 4x growth in 1 year . 66,000 KYC verified profiles – 3x growth in 1 year 26 Digital - Customised content for readers Microsites for special Customised landing pages for consumer-related events special news days State elections Festivals and special features Union budget 27 Customised solutions for advertisers - Native Videos Vanilla ads Customised content 28 Websites and social media platforms Unique Visitors, mn 9.9 . 8 times growth in Unique 1.2 Visitors in 2 years 2015 2017 . 5 times growth FB Community, mn in Facebook 5.8 reach in 2 years 1.2 2015 2017 Source: Google Analytics, Facebook Insights 29 Agenda Context Strategy and initiatives Impact 30 Print circulation sales showing signs of growth ABPABP Circulation Circulation sales sales ‘000‘000 copies copies per day 11151116 . 1.5% growth in sales in just 2 10991099 months . Combined effect of product revamp, marketing, and sales approach FebFeb 20172017 (before(Before AprApr 2017 2017 (after (After product productproduct relaunch)relaunch) productrelaunch) relaunch) 31 TV is contributing a third of group revenues Print TV Digital 1% 14% 33% 28% 100% 66% 58% 2002-03 2016-17 2020-21 Projected 32 Matrimony business already reaching leadership Market rank in terms of revenue Bengali Matrimony ABP weddings 1 Shaadi.com 2 3 10 years of 1.5 years of 10 years of operation operation operation 33 Digital matrimony business larger than print matrimony Print and Digital matrimony business revenues Print Matrimony Figures indexed Digital Matrimony 142 107 100 71 2016-17 2017-18 34 Q & A END 36 .
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