Shemaroo Entertainment Limited has informed the Exchange about Investor Presentation
1
Shemaroo Entertainment Limited | Investor Presentation March 2022
2
ABOUT SHEMAROO
3 At a Glance
Offering content across Bollywood, Devotional, Regional, Comedy, Kids, Health and Lifestyle and more to leading platforms
Strong content offerings in multiple countries across the globe
One of the largest content houses with 4,000+ content library
Over 55 years of experience as a Household Media Brand
In-depth understanding of consumers’ entertainment needs
Building B2C presence with multiple businesses launched in recent years
Revenue FY21 INR 3,111 Mn
EBITDA FY21 INR 126 Mn
PAT FY21 INR (215) Mn
Net Worth FY21 INR 5,763 Mn
4 Overview
• Founded in 1962 as a book circulating library, today Shemaroo Entertainment Limited (Shemaroo) is a leading Indian content powerhouse with a global
reach, headquartered out of Mumbai and employs 550+ people.
• Shemaroo is a pioneer in content aggregation and distribution in India and globally with offerings spread across Television, Mobile, Internet, OTT, Preloaded
devices, etc.
•
Identifying that movies have the longest shelf life for television and other media content, Shemaroo pioneered the movie library syndication business by acquiring movie titles from producers and distributing it to broadcasters and other media platforms.
• Shemaroo has grown multifold over the years, developing excellent relationships across the media industry value chain, to become one of the largest
organized players in a fragmented industry.
• The company’s digital business contribution has grown from less than 10% in FY14 to 47% in 9M-FY22.
Operational Revenue (INR Mn) and EBITDA Margin (%)
9M-FY22 Revenue Distribution
29.16%
1,305
27.79%
1,718
3,586
3,960
1,978
14.97%
3,153
FY18
FY19
FY20
1,494
4.04%
1,617
FY21
1,350
1,528
9.42%
9M-FY22
Traditional (INR Mn)
Digital (INR Mn)
EBITDA Margin
Traditional Media, 53%
Digital Media, 47%
5 Key Milestones
Home Video distribution started
Digital post production started
Evolved into a content house by acquiring perpetual rights
Commenced distributing content over digital media platforms like
YouTube
Refreshed the brand identity after 55 years
Launched pre-loaded devotional content devices
1962
1987
1993
2001
2003
2005
2008
2009
2014
2018
2019
2019
2020
Started book circulating library in Mumbai
One of the first to enter broadcast syndication
Entered overseas markets for distribution
Started content aggregation and distribution for MVAS platforms
Got listed on BSE and NSE
Launched ‘ShemarooMe’ OTT application
Launched 2 FTA television broadcasting channels – ‘Shemaroo MarathiBana’ and ‘Shemaroo TV’
6
Awards & Accolades
Amazing OTT Newcomer Award at OTTV Mumbai 2019
ShemarooMe
NASSCOM Awards, 2019 for Shrimad Bhagavad Gita Audio Book
YouTube Diamond play button for YouTube channel
Shemaroo Filmi Gaane
YouTube Diamond play button for YouTube channel
Best Marketing Strategy in OTT at BCS Ratna Award 2019
Shemaroo Entertainment
ShemarooMe
Best Brand Campaign for an OTT Platform- ScreenXX 2019
ShemarooMe
7 Experienced Leadership
Raman Maroo – Chairman and Managing Director - He has an experience of approximately 46 years, out of which he has spent around 37 years in the Media and Entertainment Industry. He has been instrumental in the Group‘s expansion into television rights syndication as well as transformation of Shemaroo into an established filmed entertainment content house. He has always remained the driving force in the Company, taking it into new directions
Atul Maru - Joint Managing Director - He has around 40 years of experience in the Media and Entertainment industry. He has managed the transition of the Company from VHS days to today’s multi-platform operations. He has been actively involved in the operations of the Company and has spearheaded various initiatives including the home video division for the Company
Hiren Gada – CEO & CFO - He has been at the helm of driving the corporate & financial growth, digital direction, strategy, and the transformation of the Company from a family run business to a professional corporate firm. He has approximately 24 years of work experience, out of which, he has around 17 years of experience in the Media and Entertainment Industry. He is an industry thought leader and brings a fresh perspective to the M&E space in India
Jai Maroo – Executive Director - He has experience in the technology industry in USA and Singapore and approximately 17 years of experience in the Media and Entertainment industry. Given his strong technical background, he has catalyzed Shemaroo’s expansion on digital distribution platforms such as Mobile, Internet, OTT etc. Currently, he is steering the Organization Transformation & Excellence portfolio for the Company
Kranti Gada Arambhan - Chief Operating Officer - Kranti heads the revenue function of the Company to drive extensive and sustainable growth. She joined Shemaroo in 2006 after a successful stint in the FMCG industry in the field of marketing at PepsiCo. She is instrumental in incubating the Company’s expansion into the DTH segment, digital media and international business verticals. She pioneered and set-up the Company’s mobile business and played a key role in the Company’s early adoption of digital platforms
8
Our Independent Board
Gnanesh Gala - Independent Director - He has around 37 years of experience in the Educational Publishing Industry. He was the President (Finance) of Navneet Publications (India) Limited for more than 23 years and is presently the Managing Director of the said company
Dr. (CA) Reeta Bharat Shah - Independent Director - She has over 32 years of experience in the field of education and administration in various capacities. Dr. CA Reeta is a Ph.D. from IIT Bombay, a member of Institute of Chartered Accountants of India, Masters in Philosophy, Masters in Commerce, Masters in Business Administration (HRM), Bachelors of Law (General) and Bachelors of Commerce (Hons.). She is engaged as Growth strategist, Tedx and International Keynote Speaker. She has worked as Head of Department (Accountancy) at SIES College of Commerce & Economics for 27 years
Vasanji Mamania - Independent Director - He has around 58 years of experience in various industrial sectors including Film Processing, Civil Constructions, Heavy Engineering and Non-ferrous Metals. He was the Co-Founder of Adlabs. Mr. Mamania has handled responsibilities ranging from operations to financial planning and engineering inputs in design and processes
Shashidhar Sinha - Independent Director - He is an alumni of IIT Kanpur and IIM Bangalore. He has over 31 years of experience in media and advertising. He is presently the CEO of IPG Mediabrands India. He is widely recognized for his strategic approach to media solutions across a wide portfolio of over 100 blue chip clients. He is actively involved and drives key industry bodies like the Advertising Standards Council of India, Advertising Agencies Association of India, Audit Bureau of Circulation, Readership Studies Council of India (RSCI), the Broadcast Audience Research Council India (BARC). He is also an honorable member of the prestigious Facebook India Client Council
9 Key Strengths
• Presence across television, digital media and
other media
• Distribution reach is a key advantage, as
company is able to offer “anytime anywhere” entertainment to consumers
06
Diversified Distribution Platforms
Established Brand
Name
• Managed to create, maintain and build goodwill in the industry
05
• Repeated transactions with known
names – STAR, SONY, Viacom 18, R.K. Studios, Tips Industries, Nadiadwala Grandson, etc.
•
Large number of titles
• Width and depth of distribution
platforms
• Multiple genres and types of content
Strong Industry Relation- ships
04
De-risked Business Model
Experienced
Management Team
03
• Brand in existence for over 55 years
01
• The “Shemaroo” brand has high consumer
recall and media visibility
• Most Bollywood services that require content would have at least some content provided by Shemaroo
• Content Library of more than
4,000+ titles spanning Bollywood, Devotional, Regional, Comedy, Kids, Health & Lifestyle, etc.
• Perpetual Rights of 1,300+ films with 40:60 split between Hindi : Other content
Strong management team with experienced industry professionals
In-depth understanding of the film industry, deep insights on technology and market trends
Content Library
02
•
•
10
CONTENT
11
The Business Model
Complete Ownership Rights
In-House Creation
Limited Ownership Rights
Perpetual Rights – Complete ownership rights for distribution across all geographies, platforms, and perpetual period
Aggregate Rights - Rights limited by either period of usage, platforms, geography or a combination thereof
Content Library
Monetisation Platforms
• Hindi Films • Regional • Devotional • Kids
• Comedy • Music • Special Interest Content • Other Content
Traditional Media
Television
Others
Satellite | Terrestrial | Cable | DTH
In-Flight | Devices | Overseas | Others
Digital Media
YouTube | OTT | Others
12 Content Powerhouse
Digital Media ~45% Revenue Contribution
YouTube Shemaroo Filmi Gaane, Shemaroo Ent, Shemaroo Movies, etc.
Syndication Netflix, Amazon Prime, MX Player, Jio, etc.
ShemarooMe Mi TV, Apple TV, Roku, Amazon Fire Stick, Android TV, MX Player, Jio, Tata Sky Binge, etc.
Telcos Partnerships: Vi, Jio, Airtel, etc.
Shemaroo is one of the largest Indian Content Houses
INR 3,111 Mn Revenues (FY21)
4,000+ Content Titles
1,300+
Perpetual Titles
2,800+
Aggregate Titles
Traditional Media ~55% Revenue Contribution
Broadcasters: Zee, Sony, Star, Viacom18, etc.
Cable Operators: Hathway, InCable, GTPL, etc.
D2H Operators: Tata Sky, Airtel TV, Dish TV, D2h
Broadcasting Channels: Shemaroo TV and Shemaroo Marathi Bana
In-Flight Entertainment Emirates, Qatar, Singapore Airlines, Etihad, etc.
Preloaded Devices Shrimad Bhagavad Gita, Bhajan Vani, etc.
13
Shemaroo’s Role In The Value Chain
Fragmented Production Houses
• Multiple
production houses / content owners in India with smaller content lot
•
•
Smaller difficult to unbundle
content
lot
is
This fragmented market necessitates the need for a content aggregator and distributor
One of the Largest Content Houses
•
•
•
•
•
Creates Value: Increasing the life of the movie and creating value for all the stakeholders
Convenient and Hassle Free: For both Producers and Platforms, it is convenient to deal with one aggregator rather than multiple players
Large Content Ownership: Large content ownership gives Shemaroo an advantage for unbundling and re-bundling of content
Premium Quality: Offers quality content to platforms by adhering to robust selection criteria
Legally Clean Titles: Offering undisputed titles
• Quality Content: High quality source material with in-house
upgradation and restoration facility
Monetization Platforms
•
Require unbundled and re-bundled content with customization
• Need a consistent flow of
content
•
Require litigation free titles
clean
and
• High volume of content for diversified platforms to monetize
14
Shemaroo’s Role In A Movie Lifecycle
• Shemaroo typically participates in the second and subsequent cycles of film monetisation • These subsequent cycles of film monetisation have been typically growing due to various factors like increasing advertisement
spends, digitization, etc.
• There is a lower risk in these cycles due to visibility of performance of movie during first cycle of launch • Shemaroo decides on the cost of the content after it is confident of achieving the desired ROI at portfolio level • Shemaroo then distributes this content over different platforms like broadcasting channels and digital media platforms
e u n e v e R
Theatrical, Television, Digital and overseas release generate over 95% of the revenues in the first cycle of movie launch, not Shemaroo where typically present.
is
Shemaroo is present in the ancillary revenue streams like DTH and in-flight movie distribution
First Cycle
Second Cycle
Third Cycle
Subsequent Cycles
15
Content Selection Criteria
Shemaroo uses proprietary tools and considers various other factors for content valuation as shown below. The company purchases forward rights to movies and decides on the cost of the content after it is sure to achieve a desired return on investment at a portfolio level.
Sr. No.
Content Selection Criteria
Sr. No.
Content Selection Criteria
1.
2.
3.
Viewership Rating
Box Office Records
Cast
4.
Music
ROMANCE ACTION COMEDY DRAMA
5.
6.
7.
8.
Production House Track Record
Genres
Reviews and Awards
Comparable Movie Valuation
16 Content IPs - Best of Bollywood
Ownership of over 2,000 Hindi Film Content Titles
Bollywood Classics
2000’s
1990’s
2010’s
17 Content IPs - Regional & Special Other Content
S E L T I T L A N O G E R
I
I
H T A R A M
I T A R A J U G
I
B A J N U P
T N E T N O C T S E R E T N
I
I
L A C E P S
Y D E M O C
S D K
I
L A N O I T O V E D
1,780+
Number of Titles
370+
Content titles
18
DIGITAL MEDIA
19 Digital Media Industry
Digital Advertising revenues in India remained flat in 2020, despite a fall in the April to June quarter. It is expected to grow at a 21% CAGR over the period FY20-FY22 to reach INR 340 Bn
Digital Subscriptions (audio and video) revenues in India grew by almost 50% to reach INR 44 Bn in 2020 and are expected to reach INR 85 Bn by 2023. The video subscription ecosystem has evolved over the past few years and now has over 40 OTT players in India
Digital Industry Revenues (INR Bn)
340
234
Highlights
192
192
✓ Digital advertising stayed stable,
led by increased allocation from traditional advertisers who accelerated their investments in digital sales channels.
✓ SME advertisers continued to increase their spends on digital advertising and experimented more with online sales platforms like Amazon and Flipkart.
✓ Advancements in digital infrastructure, increasing penetration from non- urban areas, cheaper data and high adoption of mobile phones has contributed to growth in digital advertising
✓ 45% of India’s population over 15 years of age had access to a
smartphone by December 2020
Source: EY
29
44
57
85
2019
2020
2021P
2023P
Advertising
Subscription
20
Strategic Drivers for Growth in Digital Media
Broadband Infrastructure
• Increasing reach of in data 4G and fall prices to enhance the consumption of videos
• The
India’ ‘Digital initiative from the Government
Technology
• Growing availability of sub INR 5,000 smart phones
• Increased penetration of Hybrid connected TV STBs, Smart TVs etc.
Rise of OTT
• Increase number destinations online watching
in the of OTT for video
• Surge in the width and of depth content offered for Indian consumers
Rapid digital adoption in non-metros
• Next wave of internet video users will come from the video non-metros driving local consumption languages
in
21 Digital Potential
Rising Internet Users (Mn)
Increasing Share of Regional Language Video Consumption
Internet users are rising because of the following factors:
•
•
•
•
Low-cost smart phones
Improved rural internet connectivity
Rising regional language popularity
Voice enabled utilization of internet
831
795
719
2019
2020
2021
7%
37%
56%
5%
50%
45%
2019 Hindi
Regional
2025E
English
YouTube Users in India (Mn)
Smartphone Users in India (Mn)
373
459
265
600 500 400 300 200 100 -
439
493
550
2019
2020
2021
2019
2020
2021
Source: KPMG, EY, TRAI
22
Shemaroo In Digital Media
Shemaroo was one of the early Indian media companies to syndicate its library to the high growth digital media platforms, thereby gaining early mover advantage
Digital Media Revenue (INR Mn) Digital Media Revenue (INR Mn)
1,978
1,718
1,305
1,494
1,350
923
635
•
•
The company caters to all types of revenue models like subscription, pay per transaction, advertisement supported (free to consumer), etc. Due to its large library ownership, Shemaroo has the ability to slice and dice content and package it in different ways that are more suited for the digital media platforms
Digital Media Presence
FY16
FY17
FY18
FY19
FY20
FY21
9M FY22
ShemarooMe
Internet and OTT
Mobile Value-Added services (MVAS) / Mobile Internet
• ShemarooMe is the OTT platform launched in Feb’19 – offering vast content library across Bollywood, Gujarati, Marathi, Kids, Punjabi, Comedy, Devotional, etc.
• Has partnerships with all leading Indian Telcos
• Shemaroo has agreements with various internet video platforms like YouTube, Netflix, Amazon Prime, Disney+Hotstar, Jio, Apple iTunes, Google Play, etc.
• The company has agreements with major
telecom operators, namely Airtel, Vodafone Idea to distribute videos, full songs, live streaming etc. under MVAS
23 ShemarooMe
• Over 5,000 Hours+ content across Bollywood, Devotional, Regional and Kids
• Relaunched ShemarooMe's Gujarati proposition in April 2021, positioning it as a premier Gujarati-focused OTT service
• Aims to make every Gujarati fall in love with Gujarati Entertainment once again
• Content:
• Has an exciting mix of webseries, nataks and movies including direct-to-OTT releases
• Offers one new fresh content piece every week
YouTube Views Growth
24
YouTube
Shemaroo’s content on YouTube gets over 3 Bn views a month at an average of more than 100 Mn views per day
•
•
The company’s flagship channels ‘ShemarooEnt‘ crossed 35 Mn subscribers and ‘FilmiGaane’ crossed 58 Mn subscribers on YouTube High viewership, content connect and viewer stickiness has translated into higher revenues for Shemaroo over the years
Revenue Model for YouTube •
Shemaroo gets revenue from the advertisements shown on its channels on YouTube, in many ways, for example: • Banner Ads • Pre roll ads • Mid roll ads, etc.
•
Shemaroo gets a revenue share from the advertisement revenue that YouTube makes from Shemaroo channels
Shemaroo is among the most viewed channel partners for YouTube in India and has more than 40 channels of its own on YouTube
58 Mn subscribers 5th most subscribed Indian channel on Youtube
35 Mn subscribers
25
TRADITIONAL MEDIA
26 Television Industry
Industry Dynamics • Television syndication is the sale of content rights to broadcasters • The Indian television broadcasting segment has multiple genres and movies as a genre is
second in terms of viewership after GEC
• The standard practice of the Indian television industry is to purchase forward rights for a
period of 5 to 7 years
• There is a one-time fixed fee payment made at the network level for exclusive license to
broadcast the content for multiple telecasts
On any given day, an average of 8 movies are shown on a Movie channel. Even considering the repeat telecast of these movies, the broadcaster would need access to a significantly large movie library
Under Penetrated Rural India (TV) (Mn Homes)
No. of Households
Penetration
200
100
91%
60%
Urban
Rural
Although the number of households with TV viewership in rural area is 31% more than urban area, the penetration is as low as 60%
300 Mn HHs in India
210 Mn TV HHs in India
90 Mn i.e. 30% of Indian Households don’t have TV!
TV as a medium is the largest platform for video consumption
Source: BARC and Census 2011
27
TV - Choice of MASSES & Headroom for Growth
TV will continue to be one of the most popular media consuming platforms
Segment (INR Bn)
2019
2020
2021P
2023P
CAGR (2020-23P)
TV
Digital media
Films
Animations & VFX
Gaming
Live Events
Out of Home
Radio
Music
Total
Source : EY
787
221
296
191
95
65
83
39
31
15
685
235
190
72
53
76
27
16
14
15
760
291
237
153
74
99
53
22
23
18
847
425
258
244
129
155
95
32
27
23
1,823
1,383
1,730
2,235
7%
22%
11%
50%
35%
27%
52%
26%
24%
15%
17%
28 TV Industry Performance and Projection
TV Industry Performance (INR Bn)
India’s Pay TV ARPU is one of the lowest globally
787
467
320
2019
685
434
251
2020
Advertisement
760
456
304
847
502
345
2021E Subscription
2023E
Total
✓ Television advertising declined by 21.5% in 2020, though ad volumes
fell just 3%
✓ Subscription de-growth of 7% was mainly due to reduction in ARPU and
a reduction of two million pay TV homes
✓ While television households will continue to grow at over 5% till 2025, the growth is expected to be driven by connected TVs which could cross 40 million by 2025 and free television which could cross 50 million, thereby making core television a more massified product
Source: EY, KPMG and Secondary Research
Countries Pay TV ARPU pm Digital ARPU pm
US
UK
Africa
Middle East
Thailand
India
$40-80
$8-12
$25-40
$6-12
$15-20
$5-8
$15-20
$6-12
$30-70
$6-12
$2-5
$3-8
29
Shemaroo in Traditional Media
Television Syndication • Shemaroo has a diverse content library which it syndicates to various satellite Channels,
cable and terrestrial networks
• Considering the vast and diverse library of Shemaroo, it can be easily assumed that most broadcasting channels would have some content syndicated from Shemaroo at sometime or the other
TV Syndication Platforms
Satellite Television
Terrestrial Television
• Predominantly consists of Hindi films • This includes Movie Channels, Kids Channels, Music Channels, News
Channels etc.
• Enter into exclusive agreements for a film or package of films with a
particular group of movie channels for a specified period of time
• The company also licenses content for broadcasting on terrestrial
television network
Traditional Media Revenue (INR Mn)
3,332
3,113
3,960
3,586
3,153
1,617
1,528
FY16
FY17
FY18
FY19
FY20
FY21
9M-FY22
Subscription Based Services • In partnership with major DTH and Cable operators, Shemaroo operates subscription-based, ad-free content services across various genres like Movies,
Devotion, Comedy and Regional
Advertisement led Satellite Channel • Shemaroo launched a satellite FTA channel named ‘Shemaroo MarathiBana’ in Dec’19, targeted to be a prominent leader in the Marathi movie genre • It launched a satellite FTA GEC channel named ‘Shemaroo TV’ in May’20, targeted towards HSM market and serving daily entertainment needs of
consumers
30 Digging deeper into the Regional markets
•
•
Shemaroo launched its first satellite FTA channel in Dec’19 ‘Shemaroo MarathiBana’ named as targeting to be a prominent leader in the Marathi movie genre
The company has over the years built a strong library in the regional space and with the launch of this new channel, it plans to strategically capture a vacuum in the Marathi movie genre
• Aims to be a one-stop destination for Marathi movies
and theatre plays
•
Focuses on Marathi audiences across Maharashtra and Goa
• Became the No. 4 channel
in the Marathi genre within 3 months of launch and has been in the Top 6 consistently since then
Available on DD Freedish and other leading cable and DTH operators
31 Reaching out to the Hindi Speaking Markets
•
•
•
•
Shemaroo launched its second satellite FTA channel named “Shemaroo TV” in May 2020
Targeted to be a prominent leader in the Hindi GEC genre
Shemaroo TV will showcase a perfect mix of originals and iconic shows, which can be consumed for the first-time by a large set of Free-To-Air (FTA) audience
Streaming live on OTT apps such as Tata Sky Mobile, MX Player, ShemarooMe, amongst others
Available on DD Freedish and other leading cable and DTH operators
31
32 Preloaded Audio Devices
•
Launched in FY2020 with seven preloaded devices with devotional content; namely Srimad Bhagavad Gita, Bhakti Bhajan Vani, Amrit Bani, Ibaadat, Ganesh Vani, Krishna Bhajan Vani and Sai Bhajan Vani
• Available on major online retail platforms like Amazon, Flipkart, Nykaa, etc. as well as offline stores like Croma, Crossword, WHSmith,
Reliance Digital, etc.
• Currently one of the fastest selling devotional content speakers on Amazon
Device type
Shrimad Bhagavad Gita
Bhajan Vaani
Bhakti Anand 2.0
Shri Ganesha Bhajan Vaani
Bhakti Maalai
Amrit Bani
Shri Sai Bhajan Vaani
Content Hours
Content Offering
80+
80+
20+
16+
80+
210+
18+
Designed to replicate the sacred scripture Shrimad Bhagavad Gita in three languages - Hindi, Sanskrit, and English
Shemaroo Bhajan Vaani offers collection of 1008 Bhajans, Aartis, Jaaps, Mantras, and Stotras
Bhakti Anand 2.0 offers collection of 151 Bhajans, Aartis, Jaaps, Stotras and Mantras
Ganesha Bhajan Vaani offers Lord Ganesha’s Bhajans, Aartis, Chants, Mantras & Stotras in two languages – Hindi & Marathi
Bhakti Maalai offers collection of 1008 Tamil devotional songs in high quality sound
Amrit Bani offers more than 700 tracks covering Shri Guru Granth Sahib ji, Sahaj Paath, Kathas, Kirtans, Dharmik Geet and Simrans
Sai Bhajan Vaani offers Sai Baba’s devotional songs in two languages – Hindi & Marathi
33
STRATEGY
34
India’s M&E sector will be one of the fastest growing globally in terms of both consumer and advertising spends, reaching ~INR 3 trillion by 2025
India M&E Sector Revenue (in INR Bn)
+15% p.a.
2,980
• The Indian M&E sector is expected to increase at a 15% CAGR to reach
2,570
INR 2.98 trillion by 2025
-24%
+25%
2,234
1,822
1,966
1,730
1,383
• Share of advertising in the total pie
will be INR 1.15 trillion
• Television will continue to be the largest segment, accounting for a
32% share, followed by Digital at
21%
• Digital ad spends will overtake Television ad spends by 2023
2019
2020
2021E
2022E
2023E
2024E
2025E
Source: FICCI-EY, Company Estimates
34
35
Shemaroo’ strategy will be to focus on the fastest growing segments within the two largest verticals of M&E i.e., Television and Digital
2021E
2025E
TELEVISION
DIGITAL
Subscription
INR 45,600 Crs
+
Advertising
Subscription
Advertising
INR 30,400 Crs
INR 55,200 Crs CAGR (2021-25): 5%
+
INR 39,200 Crs CAGR (2021-25): 7%
+
More than 3/4ths of the advertising market in 2025
Subscription
INR 5,700 Crs
+
Advertising
Subscription
Advertising
INR 23,400 Crs
INR 12,500 Crs CAGR (2021-25): 22%
+
INR 49,500 Crs CAGR (2021-25): 21%
Source: FICCI-EY, Company Estimates
35
36
India is establishing itself as a major force in the digital economy on the back of a strong foundation of digital infrastructure and adoption
Internet Users and Penetration
54%
46%
59%
61%
31%
34%
26%
332
392
446
604
719
795
831
1,000
800
600
400
200
-
600
500
400
300
200
100
-
70%
60%
50%
40%
30%
20%
10%
0%
57%
346
2018
Smartphone Users and Penetration
61%
62%
66%
439
2019
493
2020
550
2021E
2015
2016
2017
2018
2019
2020
2021
Total Internet Population (in Mn)
Internet Penetration
Total Smartphone Users * Smartphone users as a % of total internet population
Smartphone Penetration*
70%
65%
60%
55%
50%
45%
40%
5.0
4.0
3.0
2.0
1.0
-
Time Spent on the Phone
3.0
2017
3.7
2019 Time Spent on Mobile (hrs/day/user)
4.7
2021
Source: TRAI, Newzoo's Global Mobile Market Report, App Annie, National Payments Corporation of India
5,000
4,500
4,000
3,500
3,000
2,500
2,000
Growth in UPI Volumes
4,566 4,617
4,219 4,187
3,556 3,654
3,248
2,732 2,641 2,540
2,808
2,303 2,293
1 2 - n a J
1 2 - b e F
1 2 - r a M
1 2 - r p A
1 2 - y a M
1 2 - n u J
1 2 - l u J
1 2 - g u A
1 2 - p e S
1 2 - t c O
1 2 - v o N
1 2 - c e D
2 2 - n a J
No. of UPI Transactions (in Mn)
36
37 Digital media is expected to continue to close the gap with television
Digital Media Industry (in INR Bn)
AVOD vs. SVOD (in INR Bn)
621
425
221
235
291
57
234
2021E
125
495
2025E
2019
2020
2021E
2023E
2025E
Advertising
Subscription
•
The digital media industry is estimated to have registered a growth of 24% in 2021 to reach INR 291 Bn; expected to grow at a CAGR of 21% to reach INR 621 Bn by 2025
• Digital advertising and subscription revenues are expected to increase by 21% p.a. and 22% p.a. respectively till 2025
• Digital ad spends are expected to overtake Television ad spends by 2023
Source: FICCI-EY, Company Estimates
37
Covid-19 has brought about a systemic shift in terms of digital userbase and consumption habits
38
YT Users in India (in Mn)
Number of SVOD Subscriptions (in Mn)
265
2019
373
2020
459
2021
20-25
2019
50-55
2020
70-80
2021
Number of Video Streaming Hours (in Bn)
OTT Budgets for Originals
126
2019
177
2020
192
2021
Source: Statista, BCG-CII Big Picture Summit, December 2021, App Annie, Omdia
2021
2025
38
39
Internet base in most states is larger than the entire population of some developed countries, establishing a clear need for content in local languages
Total Internet Subscriber Base (in Mn)
Internet Subscribers
3 Yr Growth
106.38 Mn
61%
57.93 Mn
77%
51.32 Mn
43%
27.85 Mn
32%
719
2019
795
2020
831
2021
Source: TRAI
39
BiharGujaratPunjabUP 40 Shemaroo will follow a three-pronged strategy for growing its digital business
1
Growth in revenue on AVOD platforms
2
Pursue regional and targeted segments on SMe platform
3
Partnering with mainstream digital platforms for their content needs
40
41 Why will Broadcasting continue to thrive in India?
Largest Media Vehicle
Headroom for Growth
Consumption Remains Strong
Price Arbitrage vs. Digital
Most Suitable Vehicle for Brand Creation
32% of Media Industry Revenue in 2025
34% of the Advertising Pie in 2025
66% of the Video Advertising Pie in 2025
300 Mn
210 Mn
90 Mn
~Hours of Consumption Per Day
Pay TV ARPU p.m.
Digital ARPU p.m.
3.6
1.8 0.7 1.3
2018
Radio Digital Video
4.4
3.0
0.7 1.3
2021
Print Television
USA
UK
$40-80
$8-12
$25-40
$6-12
Africa
$15-20
$5-8
Middle East
$15-20
$5-12
India
$2-5
$3-8
• Highest share of screen time
• Better recall
•
Trusted medium
• Maximum reach
•
Easily measured
Rise in rural and middle class income, benefits of village electrifications and drop in TV prices to drive further TV adoption
While, Covid-19 led to a surge in consumption across digital screens and platforms, the TV consumption still remained strong
TV continues to be THE MOST ECONOMICAL source of entertainment with viewers being spoilt for CHOICE at a low price point
Source: FICCI-EY, BCG-CII Big Picture Summit, December 2021
41
42 Broadcasting will continue to be the largest segment within the M&E sector
Broadcasting Industry (in INR Bn)
Ad Volumes (in Mn Secs)
2021
1,824
787
685
760
847
944
2020
1,496
2019
2020
2021E
2023E
2025E
2019
1,542
•
•
The broadcasting industry in 2021 is estimated to be almost at the 2019 levels, growing by 11% to INR 760 Bn; expected to increase at a CAGR of 6% to reach INR 944 Bn by 2025
The Ad volumes in 2021 were way past the 2019 levels, with Q4 2021 registering the highest volumes for a quarter since 2019
Source: FICCI-EY, BARC, Company Estimates
42
43
The migration to FreeDish will continue with more channels and better content offerings
1
Slowdown in Pay TV base and increase in FreeDish base
Subscriber Base (in Mn)
71.0
37.0
46.7
2020
68.9
45.5
42.0
2021 (Est.)
DTH
Cable (Top 13 Operators)
FreeDish
2
3
4
Further migration to FreeDish and addition of TV dark households (currently at 90 Mn) primarily to FreeDish
Impact of NTO 2.0 likely to increase cable bills for consumers as broadcasters are likely to keep their flagship channels outside of the bouquet
Advertiser interest in the FTA audience
FTA is estimated to contribute ~15-20% to the overall TV Adex pie
• • While FMCG still remains the largest category, more categories like healthcare, education, telecom, etc. have started
spending considerably
Source: TRAI, BCG-CII Big Picture Summit, December 2021
43
44
Shemaroo aims to build a platform for brands to target the growing FTA audience by addressing the current gaps in content offerings
Shemaroo strategy will be to expand its footprint in the Broadcasting space
Rationale
•
•
•
Tap into a large advertising revenue space
Strong brand equity and consumer connect
Television is a gateway to a stronger and more scalable digital future
o Availability of captive media for promotion
o Content synergies across TV and Digital
Principles for Investing
•
•
•
ROI focussed
Look for allied revenue opportunities
Prudent investment approach for managing cash flows
44
45
FINANCIALS
46 Consolidated Income Statement (Ind-As)
47 Consolidated Balance Sheet (Ind-As)
48 Historical Consolidated Financial Charts
Operational Revenue* (INR Mn)
EBITDA (INR Mn) and EBITDA Margin (%)
5,678
5,131
4,891
3,111
2,878
FY18
FY19
FY20
FY21
9M-FY22
Net Worth (INR Mn) and ROCE (%)
20.31%
19.96%
5,717
5,970
5,763
4,932
8.29%
0.63%
25.00%
22.00%
19.00%
16.00%
13.00%
10.00%
7.00%
4.00%
1.00%
-2.00%
-5.00%
FY18
FY19
FY20
FY21
7,000
5,250
3,500
1,750
-
2,000
1,600
1,200
800
400
-
900
600
300
0
-300
29.16%
1,426
27.79%
1,578
14.97%
768
FY18
FY19
FY20
9.42%
271
9M-FY22
4.04%
126
FY21
PAT (INR Mn) and EPS (INR)
30.52
830
26.18
712
11.09
301
FY18
FY19
FY20
32
9M-FY22 1.18
(215)
FY21
(7.90)
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
-5.00
-10.00
49
Rights Accounting Policy – Charge To P&L
Aggregated Rights
(<10 years)
Long Term Rights (>=10 years)
Specific
Rights
Bundled Rights (Satellite + Digital Rights)
First 5 years - 65% in year of sale
Next 5 years – 35% in year of sale
Satellite, overseas, etc. - 100% in year of sale
Digital rights
Satellite rights - 85% in year of sale
Digital rights - 15% over 5 years
Satellite rights - 85% in year of sale
Digital rights - 15% over 5 years
Catalogue –equally over 60 months
New Titles – 70% in first year & balance over 4 years
50 Capital Market Data
140%
120%
100%
80%
60%
40%
20%
0%
-20%
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Shemaroo
Sensex
Price Data (As of 31st December, 2021)
Face Value
Market Price
52 Week H/L
Market Cap (INR Mn)
Equity Shares Outstanding (Mn)
1 Year Avg. Trading Volume ('000)
INR
10.00
126.20
181.00/63.25
3,430.39
27.20
154.80
Shareholding Pattern as on 31st December, 2021
Public 30.80%
FII 3.32%
Promoters 65.88%
51 Disclaimer
Shemaroo Entertainment Limited
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Shemaroo Entertainment Limited (“Company” or “Shemaroo”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.
This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.
Valorem Advisors Disclaimer:
Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.
For further information please contact our Investor Relations Representative:
Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: shemaroo@valoremadvisors.com Investor Kit Link: www.valoremadvisors.com/shemaroo
52
THANK YOU