Shemaroo Entertainment Limited has informed the Exchange about Investor Presentation
Ref No.: SEL / Reg. 30 – LODR /Mar-23
March 16, 2023
The Secretary, National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla Complex Bandra (E), Mumbai-400 051. NSE Symbol: SHEMAROO
The Secretary, BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai - 400 023. Scrip Code : 538685
Dear Sir/Madam,
Re: SHEMAROO ENTERTAINMENT LIMITED - ISIN: INE363M01019
Sub: Investor Presentation
Please find enclosed herewith Investor Presentation of Shemaroo Entertainment Limited for your information and records.
The same is also disseminated on the website of the Company i.e. www.shemarooent.com
Thanking you,
Yours faithfully, For Shemaroo Entertainment Limited
…………………………. Hetal Vichhi Company Secretary & Compliance Officer ICSI Membership No. A42806
SHEMAROO ENTERTAINMENT LIMITED Shemaroo House, Plot No. 18, Marol Co - Op. Industrial Estate, Off Andheri Kurla Road, Andheri (E), Mumbai - 400 059. Tel.: +91 - 22 4031 9911 | Fax: +91 - 22 2851 9770 | Email: shemaroo@shemaroo.com shemarooent.com | CIN: L67190MH2005PLC158288
Shemaroo Entertainment Limited
INVESTOR PRESENTATION – MARCH 2023
Evolution of Shemaroo
TV Syndication Telco
YouTube
DTH
Pre-1995 The Genesis
B2C
1995 -2018 Adding Value to Platforms
B2B
2018onwards Re-connecting with the Consumers
B2C
Book Circulating Library
Home Video Distribution
Brand Refresh
ShemarooMe
Broadcasting
2
Building stronger consumer businesses
Shemaroo (Pre 2018)
Shemaroo Today (FY23)
B2B DIGITAL SYNDICATION
B2B2C YOUTUBE
B2B2C DTH
DIGITAL
20%
TRADITIONAL
80%
DIGITAL
50%
TRADITIONAL
50%
B2B DIGITAL SYNDICATION
B2B2C YOUTUBE AND FACEBOOK
B2C SHEMAROOME
ME
B2C
BROADCASTING
B2B2C DTH
B2B TV SYNDICATION IN-FLIGHT
B2B
TV SYNDICATION IN-FLIGHT
3
Large presence in the digital AVOD space through YouTube and Facebook
1
BOLLYWOOD MOVIES
2
BOLLYWOOD MUSIC
3
REGIONAL
4
DEVOTIONAL
5
OTHERS
• Shemaroo • Shemaroo Movies • Shemaroo Comedy
• Shemaroo Filmi Gaane • Musical Maestro
• Shemaroo Gujarati • Shemaroo MarathiBana • Shemaroo Punjabi
• Shemaroo Bhakti • Shemaroo Bhakti Darshan
• Shemaroo Kids • Shemaroo GoodHealth 24x7
B2B2C
50+
CHANNELS
Diversified Presence
>100
MILLION
200+
MILLION
21st
MOST SUBSCRIBED
Views per day garnered
Cumulative Subscriber Base
Channel in the world ‘Shemaroo Filmi Gaane’
4
ShemarooMe is the leading OTT for Gujarati entertainment
Launched ShemarooMe's Gujarati proposition in 2021,
positioning it as a premier Gujarati-focused OTT service
CONTENT: • Has an exciting mix of webseries, nataks and movies
including direct-to-OTT releases
• Offers one new fresh content piece every week
• Has more than 5 million downloads on Google Play
Store
ADDRESSABLE MARKET:
• 13-15 million Gujarati-speaking* internet households
App Available on:
*Gujarat, Mumbai, Rest of India and Rest of World
TV
B2C
5
Successfully forayed into TV broadcasting, the largest Media and Entertainment segment
B2C
Shemaroo TV is a Hindi GEC channel that
Shemaroo Umang, a Hindi GEC channel, offers a
Shemaroo MarathiBana is the first
offers a broad spectrum of shows of
line up of light-hearted stories targeting the
regional channel under the Shemaroo
multiple genres
masses, specifically women
umbrella
Hindi GEC Genre
Marathi Genre
Addressable advertising market for Hindi general entertainment channels (GEC) genre is INR 7,000-7,500 crore
Addressable advertising market for Marathi genre is INR 1,200-1,500 crore
Within three years of launch, our GECs have increased their viewership share from 2% to over 10% in the Hindi GEC genre*
Our Marathi channel has achieved a viewership share of ~4% in the Marathi genre*
*As on Dec 2022 Source: Pitch Madison Advertising Report 2023
6
Built a portfolio of diverse original TV Shows
B2C
7 7
Content syndicated across most global media platforms
TELEVISION SYNDICATION
DIGITAL
SYNDICATION
B2B
8
Taken great strides across multiple fronts on the path set out in 2018
1
2
3
4
DIGITAL BUSINESS RAMP-UP Contribution of digital revenue to our topline increased from 27% in FY18 to 48% in FY22
BUILD TOWARDS A B2C COMPANY
Launched two B2C businesses – television channels and an OTT app
DERISKED BUSINESS MODEL Significantly increased predictable revenue streams
PROFESSIONAL MANAGEMENT
Built a strong leadership team of professionals from the industry
9
Strategy
WAY FORWARD
10
All the building blocks are in place
Long-term Shareholder Value Creation
Strong Cash Flows and Predictable Financials
PILLARS
Digital
Traditional
COMPETITIVE ADVANTAGE
PRINCIPLES
>INR 1.6 trillion CAGR (P) >13%*
Technology and Data
Content IP
Relationships and Partnerships
Brand
Professional Management
Consumer First
Scalable Opportunities
Share of the Ad Market
Content Synergy
Macro Tailwinds
Large and Growing Market
*Source: FICCI- EY
11
MACRO TAILWINDS: GDP growth will drive M&E industry growth
M&E industry grows at ~1.5-2x of GDP growth
GDP Growth vs. M&E Sector Growth
Growth in media spends far exceeded the growth in GDP
During periods of recession, media spends witness a considerable drop compared to the drop in GDP
GDP Growth Rate
M&E Sector Growth
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022 (P)
12
20.00%
15.00%
10.00%
5.00%
0.00%
-5.00%
-10.00%
-15.00%
-20.00%
-25.00%
-30.00%
Source:RBI, FICCI-EY
MACRO TAILWINDS: Growing middle-class will boost both advertising as well as subscription spends
HOUSEHOLDS>
High >$40,000
Upper Mid <$8,500-40,000
Low Mid $4,000-8,500
Low <$4,000
219M
1M (1%)
16M (7%)
51M (23%)
151 (69)
2005
293M
8M (3%)
61M (21%)
97M (33%)
127M (43%)
2018
386M
29M (7%)
168M (44%)
132M (34%)
57M (15%)
2030F
Income per HH inreal terms at 2017-18prices
Source: WorldEconomic Forum
13
LARGE AND GROWING MARKET: Laid the foundation to capitalize on the growth in both television and digital media
2021
2024E
DIGITAL
Subscription
5,600
Advertising
24,600
Subscription
10,700
CAGR (2021-24): 24%
Advertising
43,000
CAGR (2021-24): 20%
TELEVISION
Subscription
40,700
Advertising
31,300
Subscription
43,200
CAGR (2021-24): 2%
Advertising
39,400
CAGR (2021-24): 8%
in INR Crs
Source: FICCI-EY
14
More than 3/4ths of the advertising market in 2024
LARGE AND GROWING MARKET: Digital media will continue to grow on the back of a strong foundation of digital infrastructure and adoption
Affordable smartphones and cheap data prices ….
Smartphone Users and Penetration
57%
346
2018
61%
62%
439
2019
493
2020
66%
550
2021
72%
600
2022
Total Smartphone Users
Smartphone Penetration*
*Smartphone users as a % of total internet population
Average price of 1GB (USD)
12.55
7.37
5.62
4.29
0.04
Israel
0.17
India
0.41
0.57
China
Australia
UAE
United Switzerland South Korea States
….have lead to an explosion in internet usage and given a boost to digital video consumption
Broadband Users and Penetration 54%
48%
56%
59%
38%
27%
18%
236
2016
363
2017
519
2018
662
2019
747
2020
792
2021
832
2022
80%
60%
40%
20%
0%
10%
137
2015
Total Internet Population (in Mn)
Internet Penetration
Digital Video: Hours of Consumption per Day
1.8
2018
3.0
2021
Source: TRAI, Newzoo's Global Mobile Market Report, App Annie, Cable.co.uk
15
LARGE AND GROWING MARKET: Despite being the largest and most mature segment in M&E, television still has headroom for growth
Headroom for Growth
Price Arbitrage vs. Digital
Consumption Remains Strong
TV Dark Houses
Pay TV ARPU p.m.
Digital ARPU p.m.
~Hours of Consumption Per Day
300 Mn
210 Mn
90 Mn
USA
UK
$40-80
$25-40
$8-12
$6-12
Africa
$15-20
$5-8
Middle East
$15-20
$5-12
India
$2-5
$3-8
3.46 hrs
3.48 hrs
2018
2021
Rise in rural and middle class income, benefits of village electrification and drop in TV prices to drive further TV adoption
Source: FICCI-EY, BCG-CII Big Picture Summit, December 2021
TV continues to be THE MOST ECONOMICAL source of entertainment with viewers being spoilt for CHOICE at a low price point
While Covid-19 led to a surge in consumption across digital screens and platforms, the TV consumption remained strong
16
PRINCIPLES: Foundation for our growth strategy
1
2
3
4
Consumer First
Scalable Opportunities
Share of the Advertising Market
Content Synergies
Consumer behaviour to consumer experiences
Focus on largest and fastest growing opportunities in the M&E industry
Create and grow advertising-led platforms across television and digital
Multiple platforms to monetize
17
COMPETITIVE ADVANTAGE: Leveraging the strengths built over the years
PROFESSIONAL MANAGEMENT Leadership with strong pedigree in the industry
CONTENT IP Large content library across languages and genres
BRAND Built over 60 years
PARTNERSHIPS Built equity with key stakeholders across the value chain
COMPETITIVE ADVANTAGE
18
TECHNOLOGY AND DATA: Investing in strengthening digital capabilities
Digital Transformation at Enterprise Level
Data Analytics
Early Adopters in New-Age Tech
19
DIGITAL: We have a clear three-pronged strategy for growing our digital businesses
Grow SMe with a focus on regional and targeted segments
Scale-up advertising led digital businesses
Syndicate content across mainstream digital platforms
Leading the channels of future
* Projected industry growth
20
TRADITIONAL: While broadcasting will be the growth driver, syndication will drive cash flows
Build a network of channels
Build strong brand equity and consumer connect
Target channel opportunities in the Free and Pay ecosystem
Use our broadcasting channels as a gateway to a stronger and more scalable digital future
ROI focused approach to grow our broadcasting business
BROADCASTING Growth Driver
Aim to reach >15% of viewership share in the Hindi GEC genre by 2026
TV industry growth of 4-5% p.a.*
SYNDICATION Steady Cash Flow
Fortify partnerships in the TV broadcasting industry
Leverage vast and varied library
Focus on generating IRR on the portfolio
* Projected growth
21
STRONG CASH FLOWS AND PREDICTABLE FINANCIALS
Shift in mix towards B2C has led to more predictable revenues
More than 80% of the investment in new initiatives FY2021 onwards has been funded through internal accruals
Operating Revenue (in INR Mn)
EBITDA (in INR Mn)
6,000
5,678
5,131
5,000
4,000
3,000
2,000
1,000
3,814
3,921
3,111
2,878
9M FY22
1,200
1,000
800
600
400
200
701
126
575
+
673
+
529
=
1,031
833
Investment in New Initiatives INR 1,777 Mn
358
30 4
Funded through Debt = INR 342 Mn
Funded through Internal Accruals= INR 1,435 Mn
FY2019
FY2020
FY2021
FY2022
9M FY2023
FY2021
FY2022
9MFY2023
EBITDAw/oNew Initiatives
ReportedEBITDA
22
LEVERS FOR LONG-TERM VALUE CREATION
Synergy Capture
Strong Foundation of People and Processes
Scale-up of B2C Initiatives
TV = Scale Digital = Growth
Macro and Economic Tailwinds
TOMORROW
TODAY
23
THANK YOU