UTV Software Communications Limited Antique Media and Entertainment Conference, Mumbai
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Movies Interactive Television Broadcasting New Media UTV Software Communications Limited Antique Media and Entertainment Conference, Mumbai January 6, 2009 UTV business segments TV Content Movies Broadcasting Gaming New Media Own TV Content Hindi Network of the Console Internet Production future Digital Regional movies Mobile 3 strong segments Mobile Content Production Hollywood Joint Ventures Youth Online Segments Animation Music Sponsored Blocks Movies Publisher +IP Creators Entertainment Slate of over 45 Business movies Worldwide Business Web/Mobile Worldwide integral part market Technology distribution Portals Own distribution Full Studio Model network UTVi.com Worldwide Bindass.com Syndication utvatplay.com Strategy Stay consolidated to have value creation across all 5 verticals in one Company for aligned shareholder interest… 2 A quick look at this fiscal… 9 Months FY09 revenue of Rs. 4,681 mn, up by 86% yoy Positioned as one of leading and fastest growing Media and Entertainment company in India – One of the top 5 companies in terms of scale Growth possible due to diversified yet synergistic business model Unique positioning as compared with most of the diversified Companies focused on Broadcasting model - Content + Distribution + IP + Platform A Unique play in this part of the world Promoter interests fully aligned in media to this one listed vehicle only 3 UTV Team Board of Directors Disney - 3 Promoters - 3 Independent - 6 CEO Group CFO TV Content Motion Pictures Broadcasting Interactive New Media CEO ED/CEO CEO COO CEO COO, MD, Ignition CEO Bindass Spotboy COO, COO, Movie MD, Indiagames Development channels CEO, True Games COO, Development Employee strength of 1,000 across all five verticals 4 Result Summary Rs. Millions FY2008 9M FY2009 Revenues 4,342 4,251 - TV 1,006 1,013 Achieved almost - Movies 2,424 1,887 100% of - Games Content 956 707 FY08 revenues - New Media - 143 - Broadcasting - 548 in 9M FY2009 Less: Inter segment (44) (47) EBITDA Margins FY08 9M FY09 Segment Result 829 312 19% 7% - TV 180 45 18% 4% - Movies 556 543 23% 29% - Games Content 93 (48) 10% -7% - New Media - (27) 0% -19% - Broadcasting - (200) 0% -37% PAT 777 878 Net Margins 18% 21% Capital Employed 7,270 16,514 - TV 342 401 - Movies 4,465 8,248 - Games Content 1,093 2,712 - New Media - 349 - Broadcasting - 3,135 - Unallocable 1,369 1,669 * FY2008 numbers are audited 5 Results Comparison FY2008 FY2009 1,947 2000 1,786 1800 1,622 1600 1,452 1400 1,244 1200 1000 735 800 Rs.Million 571 600 328 400 231 271 251 299 176 200 91 0 1Q08 2Q08 3Q08 4Q08 1Q09 Q209 Q309 Revenue PAT Consistent growth reported Y-o-Y 6 What sets us apart Non replicable Combination of our 5 verticals & its positioning and model partners gives us a 5 year head start for anyone to replicate at this scale over 5 verticals. Content Focus Most of the Multi play models are either “Platform” or “Distribution” OR “Infrastructure” focused; While UTV’s origin and focus is “Content” first and then owning or controlling distribution platforms for the Content we Create or Aggregate. Intellectual Property IP being created and retained in all our verticals. Strong value creator for the future and a robust annuity model. Top end of the value Except for TV Content, all our businesses have a direct chain connect with the consumer. 7 What sets us apart Global Footprint In Gaming - World is our market In Movies - 26 to 30 countries day & date release In Broadcasting – Migrant Population & Platforms like IPTV and DTH spread worldwide In Web & Digital – The world Leadership Position In all our businesses Already there OR will be there soon Growth through We understand and have a track record which very few M&A’s others have and have proven integration and growth of the same Global Partner like Disney Committed to high growth and value addition in all Disney 5 verticals. 8 Disney Connect Total investment of Rs 10 billion over a period of 2 years into the company – largest investment in part of the world Not just a financial investment – Disney committed to drive growth, synergies and significant value addition in all 5 business verticals Its evident by ABC News exclusive alliance with UTV News in just 10 days after announcement Disney distributed Tare Zameen Par home video in International markets for UTV UTV to exclusively distribute all Disney releases in India … and this is just the beginning 9 Disney Connect Some more identified areas of synergies in short term Indian Movie co-productions Worldwide DVD distribution & TV Syndication of Indian Movies Disney/ABC: Best TV Formats; JV for Indian market International distribution for our channels Combining Disney channels in India on our distribution platform Access to their retail and franchise chain in India for Bindass Examining synergies in gaming – publishing and distribution of our original IP 10 Revenue distribution among verticals 2008A Movies 55% Gaming 22% TV 23% 2009E 2010E Movies Gaming 47% Gaming 32% Movies 19% 43% Broadcastin g 11% Broadcasting 12% New Media 4% New Media TV TV 3% 10% 19% 11 Best revenue mix among the media companies in India Revenue Streams Contribution 1 Advertising (A&S and Broadcasting) 18% 2 Box Office 18% 3 Home Video & Music sales 8% 4 Broadcasters (TV Content & Movie syndication) 35% 5 Telcos (Gaming) 10% 6 Retail (Gaming) 11% 12 Shareholding Structure Eq. Share – 34.2 million Eq. Share – 38.7 million (Pre Warrants Conversion) (Post Warrants Conversion**) Public Public 16.7% 14.8% Promoters Promoters 23.3% 32.3% Open offer Open Offer 22.7% 20.0% Disney Disney 37.3% 32.9% Notes: 1. Warrants conversion expected by November 2009 2. Open Offer shares are non-voting shares, Promoters have an option to buy back from Disney within 4 year period Key Shareholders The Walt Disney Company DSP Blackrock Reliance Capital Fidelity Alliance Bernstein Templeton Market Cap on expanded equity is around Rs. 9.5 billion 13 Television Air Time Sales We remain largest on the Sun Group Complementing model with our own productions Boost TV content portfolio Content in reality and Comedy genre – achieved significant QoQ growth Preferred programmer on our broadcasting network JVs with well known talent in TV industry A very stable model positioned as one of the Top 2 players in the space 14 UTV Motion Pictures Positioned as # 1 studio in the Industry today Best positioned to ride the downturn with as many as 45 movie pipeline in various stages of production Proven abilities to distribute movies across over 32 countries day and date Multiple movie talent relationships with renowned directors and actors Our core competence: Talent identification and then empower them Content – Cutting edge yet very commercial Marketing – very innovative Scale & consistency 15 Movie release and pipeline Movies released during FY2009 - Kismat Konnection, Aamir, Mumbai Meri Jaan, Wednesday, Welcome to Sajjanpur, Fashion, Oye Lucky Lucky Oye, Dev D Upcoming slate for next 12 months Name of Movies Exp Release Director / Cast Dev D Q4 FY09 Abhay Deol, Introducing Mahi Gill & Kalki Delhi 6 Q4 FY09 Abhishek Bachchan, Sonam Kapoor -dir. by Rakeysh Mehra Dhoondte Reh Jaaoge Q4 FY09 Kunal Khemu, Zayed Khan, Soha Ali Khan, Celina Jaitley, Kissan Q1 FY10 Sohail Khan, Arbaaz Khan, Jackie Shroff, Dia Mirza Main aur Mrs. Khanna Q1 FY10 Salman Khan, Kareena Kapoor, Sohail Khan Kaminay Q1 FY10 Shahid Kapoor, Priyanka Chopra Yahoo Q1 FY10 Shahid Kapoor Ali Baba & the 41 thieves Q1 FY10 Animation film directed by Soumitro Ranade What's your Rashee? Q2 FY10 Priyanka Chopra, Harman Baweja Aage se Right Q2 FY10 Shreyas Talpade, KK Menon Peter Gaya Kaam Se Q2 FY10 Rajeev Khandelwal Rajniti Q3 FY10 Ranbir Kapoor, Ajay Devgan, Katrina Kaif Pan Singh Tomar Q3 FY10 Irrfan Khan Seasons Greetings Q3 FY10 Shreyas Talpade, Tabu, Sohail Khan Delhi Belly Q3 FY10 Co-produced with Aamir Khan with ensemble cast 16 Broadcasting The best “Specialty” and “Genre” segment in India – No 1 Hollywood channel – No 1 Youth channel – Unique positioning – Synergistic with UTV Motion Pictures Only bouquet to have pay channels from day one (excluding established Star, Zee & Sony) Robust syndication model – in Content & taking Channels worldwide 17 Broadcasting – Going forward Focus on Digital & Pay market - 1 channel in ONLY digital mode Re-modeled investment plan Down from Rs. 650-700 crs to Rs 460 crs Rs. 360 crs already invested (UTV – Rs. 240 crs & Disney – Rs. 120 crs) and Additional Rs. 100 crs Loss projection scaled down FY2009 (8 months): From Rs. 50 crs to Rs. 30-32 crs FY2010 (12 months): From Rs. 75 crs to Rs. 30 crs 18 Games Content Presence across all gaming distribution Platforms Console (Ignition) Mobile (Indiagames) Online (True Games) Key markets For consoles: USA/ UK+EU/ Japan For mobile: USA/ India/ APAC For online: USA/ emerging markets (Brazil, Turkey, etc.) Activities Original IP Creation Acquisition and publishing of IP IP creation hubs currently in London, Florida, Mumbai and Tokyo We are multiplatform and have 3 large IP’s under production in console gaming and three in True Games Business growing rapidly despite the current business environment – Indiagames reported a Q-on-Q growth of 20% in Q3FY09 19 New Media – Web/ Mobile Presence across all new media distribution platforms – Web & mobile Strong verticals Business - UTVi.com Technology - ITNation Entertainment (UTV’s broadcast + movie assets) and (Acquisition of 15,000 songs including regional catalogues) – launching shortly