HT Media Ltd
Indian Media Industry Overview
Sector dynamics 1.6 1.4 1.2 1.0 0.8 0.6 High growth potential 0.55 1.12 1.34 0.95 0.98 0.4 0.34 0.2 0.0 India China Singapore US UK Global Advertising spend as % of GDP in India still very low attractive growth potential Indian media at inflexion point, with ad spend set to rise with economic growth, rising consumerism and higher media penetration Source PWC report/zenith Publication
Growth Rates- Ad revenues CAGR CAGR India 2005 India Global Over 2005-10 2005-09 2004 TV 14% 6% 11% Print 15% 5% 16% Radio 32% 5% 37% Out of Home 14% 5% 17% Internet 50% 14% 50% Total 15% 6% 16% Indian media on growth tracks fueled by robust economic fundamentals Print clocks high growth. grows faster than TV for second consecutive year Source: FICCI and PWC Report
Advertisement Industry - Overview Rs. Crs Ad Industry Amount TV 5,450 Dailies 5,300 Magazines 970 Out of Home 900 Radio 300 Internet 100 Total 13,020
Media Industry 2005 Ad industry Dailies Out of Home 7% Radio 2% Internet 1% Others 23% Magazines 7% TV 42% Biz dailies 8% English 48% Dailies 41% Hindi 21% Industry estimate for 2006 continues to be optimistic Expected to grow faster than 2005; ~ 20% Higher literacy to further boost print penetration Industry estimates compiled from Adex India
HT Media Overview Business paper
Corporate Journey Multiple editions launched Media business demerged; HT Media Ltd incorporated HT Media goes public 2nd largest print media company in India; Reader base of over 13 million HT inaugurated by Mahatma Gandhi Hindustan Times Ltd formed Sales offices 1924 1927 1986 2003 2005 2006 Editions cover 65% of population Pan-India sales presence
Corporate Culture RESPONSIBILITY PEOPLE-CENTRIC COURAGE EMPOWERMENT SELF-RENEWAL
Corporate Snapshot Institutional Investor Henderson Asia Pacific Citicorp Finance FY 06 H1 FY 07 Rs Crs %G Rs Crs %G Financial Revenue 839 +32% 505 +31% EBITDA 136 +62% 116 +108% PAT 37 +36% 58 +214%
Presence & Position Hindustan Times Punjab 1. Hindustan Times 2. Tribune UP 1. Times of India 2. Hindustan Times Bihar/Jhknd 1. Hindustan Times 2. Times Of India Delhi 1. Hindustan Times 2. Times Of India Mumbai 1. Times Of India 2. DNA 3. Hindustan Times West Bengal 1. Telegraph 2. Times Of India 3. Hindustan Times Along with a national footprint HT also has a dominant position in key markets
Presence & Position Hindustan Delhi 1. Navbharat Times 2. Hindustan UP 1. Jagran 2. Amar Ujala 3. Hindustan Covers Delhi/UP Bihar & Jharkhand Expanding footprint Leveraging existing Infrastructure Bihar/Jhknd 1. Hindustan 2. Jagran 2. Prabhat Khabar Printing hubs Agra/Meerut- Delhi Kanpur - Lucknow
Multimedia Presence HT Media Print Internet Events Radio (Virgin) HindustanTimes.com Leadership Delhi Hindustan.com Luxury Mumbai HTCricket.com Youth Bangalore Hindustan Times Hindustan Business (WSJ) Magazines Nexus Kolkata Delhi Mumbai Chandigarh North & East India (UP, Bihar, Delhi Mumbai Nandan Kadambini Others Tabloid JV with BCCL Bhopal Jharkhand, Jaipur Delhi) Lucknow Patna Ranchi Kolkata
Business Strategy - Internet Internet users Q3 06 (Million) Penetration % CAGR % (00-06) USA 201 USA 69 India 51 China 123 Japan 67 China 33 Japan 86 UK 63 Japan 10 India 60 China 9 UK 6 UK 38 India 5 USA 3 India has small internet user base but is the fastest growing market amongst all the leading markets Indian internet users expected to reach 122 Million by 2009 (source : Kaufman Bros) Leverage content to build verticals VAS Alerts/Gaming/Contests/Short code (4242) Source Internetworldstats.com
Business Strategy Business paper Long term segment growth potential is high Indian economy showing robust growths Booming stock market Opportunity exists for a high quality daily Build a comprehensive finance portal Gap exists for a high quality business paper
Business Strategy - Radio Enter Delhi & Mumbai followed by Bangalore & Kolkata Delhi & Mumbai. accounts for + 50% of the radio industry Globally radio revenue accrues from one or two main cities South Africa Jo burg & Capetown +80 % Thailand - Bangkok +80% Australia Melbourne, Sydney & Brisbane + 75%
Radio industry set to grow multifold CAGR of 34% for 5 years (2006-10)
Financial Performance
FY 06 performance 1000 800 600 400 200 0 Revenue EBIDTA + 32% 160 + 62% 140 839 120 136 637 100 552 80 84 60 40 20 20 0 2003-04 2004-05 2005-06 2003-04* 2004-05 2005-06 55 PAT + 55% 35 52 15 34-5 -2 2003-04* 2004-05+ 2005-06+ * 2003-04 for 9 months + All figures before extra-ordinary items
Quarterly performance Total Revenue 300 FY 05 FY 06 FY07 Rs Crs 250 200 150 155 +33% 248 +20% 186 158 +30% 258 +26% 199 165 +37% 226 159 +44% 229 100 50 0 Q1 Q2 Q3 Q4
Quarterly performance EBITDA 70 60 50 +107% 61 FY 05 FY 06 FY07 +109% 55 Rs Crs 40 30 20 22 +32% 29 +74% 26 23 +81% +66% 41 40 24 10 0 15 Q1 Q2 Q3 Q4
Quarterly performance PAT 35 30 25 +188% 31 FY 05 FY 06 FY07 +236% 27 Rs Crs 20 15 +74% 17 +77% 16 10 5 10 +8% 10 5 +52% 8 10 9 0 Q1 Q2 Q3 Q4 + All figures before extra-ordinary items
Thank You