SHEMAROONSE12 February 2020

Shemaroo Entertainment Limited has informed the Exchange regarding Investor Presentation

Shemaroo Entertainment Limited

Download PDF ↗View SHEMAROO Stock →

Ref No.: SEL/Reg. 30 - LODR/Feb-20

February 11, 2020

The Secretary,

National Stock Exchange of India Limited

Exchange Plaza,

Bandra-Kurla Complex

Bandra (E), Mumbai-400 051.

NSE Symbol: SHEMAROO

Dear Sir / Madam,

The Secretary,

BSE Limited

Phiroze Jeejeebhoy Towers

Dalal Street,

Mumbai-400 023.

Scrip Code: 538685

Re: SHEMAROO ENTERTAINMENT LIMITED -ISIN: INE363M01019

Sub: - Earnings Con. Call Presentation- Intimation under Reg. 30(6) of SEBI (LODR),

Regulations, 2015

Please find enclosed herewith Earnings Presentation of Shemaroo Entertainment Limited for

the Quarter and nine months ended December 31, 2019

This is for your information and records.

The same is also di sseminated on the website of the Company i.e. www.shemarooent.com

Thanking you, Yours faithfully, For Shemaroo Entertainment Limited

,:yn'~~ ~~..

Dlpesti Gosar Company Secretary & Compliance Officer Membership No.: A23755

Ene/.: As above

SHEMAROO ENTERTAINMENT LIMITED Shem aroo House, Plot No. 18, Maral Go - Op. Industrial Estate. Off Andh er i Kurla Road. Andheri (E), Mumbai - 400059 . Tel. : +91 - 22 40 31 9911 I Fax: +91 - 22 2851 9770 I Email : shem aro o@shemaroo.com s hemaraoenl. com I GIN: L67190MH 200 5PLG 158288

Shemaroo Entertainment Limited | 9M / Q3‐FY20

At a Glance

Over 55 years experience as a Household Media Brand

One of the largest content houses with 3,900+ content library

Offering content to most Bollywood services across leading platforms

Offering content across Bollywood, Devotional, Regional, Comedy, Kids, Health & Lifestyle, etc.

Strong understanding of Consumer's Entertainment Needs

Strong content offerings in multiple countries across the globe

REVENUE FY19 INR 5,678 Mn

EBITDA FY19 INR 1,578 Mn

PAT FY19 INR 830 Mn

NETWORTH FY19 INR 5,717 Mn

5 Year CAGR 16.50%

5 Year CAGR 19.67%

5 Year CAGR 25.00%

5 Year CAGR 26.79%

Overview

• Founded in 1962 as a book circulating library, today Shemaroo Entertainment Limited (Shemaroo) is a leading Indian content power house with a global

reach, headquartered out of Mumbai and employs over 750 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

organised players in a fragmented industry.

• The company’s digital business contribution has grown from less than 10% in FY14 to over 30% in FY19.

Operational Revenue (INR Mn) and EBITDA Margin (%)

FY19 Revenue Distribution (INR Mn)

26.86%

24.30%

28.71%

29.96%

29.16%

1,305

923

635

373

27.79%

1,718

246

2,387

2,861

3,113

3,332

3,586

3,960

20.46%

1,520

2,384

FY14

FY15

FY16

FY17

FY18

FY19

9M‐FY20

Traditional (INR)

Digital (INR)

EBITDA Margin (%)

Digital media 30%

Traditional Media 70%

9M / Q3‐FY20 HIGHLIGHTS

5 9M / Q3‐FY20 Key Financial Highlights

Q3‐FY20 performance (Consolidated):

9M‐FY20 performance (Consolidated):

• • • • • •

Revenue from Operations: INR 970 Mn EBITDA: INR 195 Mn EBITDA Margin: 20.07% Net Profit: INR 85 Mn Net Profit Margin: 8.76% EPS: INR 3.13

Profit and Loss includes expenses on new initiatives (net of revenue) ‐ INR 70.19 Mn

Divisional Breakup (Consolidated):

• • • • • •

Revenue from Operations: INR 3,904 Mn EBITDA: INR 799 Mn EBITDA Margin: 20.46% Net Profit: INR 441 Mn Net Profit Margin: 11.31% EPS: INR 16.24

Profit and Loss includes expenses on new initiatives (net of revenue) ‐INR 157.12 Mn

INR Mn

Q3‐FY20

Q3‐FY19

YOY Growth

9M‐FY20

9M‐FY19

YOY Growth

Digital Media

Traditional Media

Income from Operations

482

488

970

426

1,063

1,489

13.2%

(54.1)%

(34.9)%

1,520

2,384

3,904

1,271

3,085

4,356

(19.6)%

(22.7)%

(10.4)%

6 Key Financial Highlights

•

ShemarooMe 1) Launched globally; Now available in 150 countries 2) Signed Strategic partnership with MX Player 3) Made available on Cloudwalker TV, TCL TV, Android TV globally and Roku devices in the US

• Crossed 30 mn subscribers on YouTube channel ‘FilmiGaane’ and 20 mn subscribers on Youtube channel "ShemarooEnt“

•

Launched 2 new pre‐loaded audio speakers ‐ Amrit Bani (Sikh Devotional Speaker) and Sai Bhajan Vaani

Shemaroo signed a content deal with Mubi, a London based VOD streaming service

Launched a new service on DTH: Gujarati Cinema on Tata Sky in Oct 2019

Launched Shemaroo MarathiBana ‐ Free to Air Marathi Movies satellite Channel ‐ Available on DD FreeDish and leading DTH and cable operators

• Weak macro‐economic conditions in India have resulted in an overall slowdown in the country which has impacted consumption and hence advertising spends. Shemaroo has also been steadily investing in new B2C products and services to fuel its growth, which has impacted the margins.

o In order to offset the impact, Shemaroo has undertaken various organization wide cost rationalization measures

7 Key Financial Highlights

YouTube Views (Monthly Views in Lakhs) Graph till December 2019:

Q3‐FY20 Consolidated Income Statement (Ind‐AS)

Particulars (INR Mn)

Revenue from Operations

Total Expenses

EBITDA

EBITDA Margin (%)

Other Income

Depreciation

Finance Cost

PBT

Tax

PAT

Minority Interest & Share of profit/ (loss) in associate company

PAT after adjustments

PAT Margin (%)

Comprehensive Income

Total Profit including Comprehensive Income( Net of tax)

EPS (INR)(not annualised)

Q3‐FY20

Q2‐FY20

Q‐o‐Q

Q3‐FY19

Y‐o‐Y

970

775

195

1,503

1,218

285

20.07%

18.96%

120

(2)

215

194

195

(35.5)%

(36.4)%

(31.6)%

111 Bps

(16.7)%

5.4%

(44.2)%

57.1%

(55.2)%

N/A

(56.4)%

1,489

1,136

353

(34.9)%

(31.8)%

(44.8)%

23.69%

(362) Bps

280

196

(28.6)%

42.9%

(9.2)%

(57.1)%

(60.7)%

(55.6)%

(56.6)%

8.76%

12.97%

(421) Bps

13.14%

(438) Bps

3.13

195

7.17

N/A

(56.4)%

(56.3)%

‐

196

7.20

(56.6)%

(56.5)%

9M‐FY20 Consolidated Income Statement (Ind‐AS)

Particulars (INR Mn)

Revenue from Operations

Total Expenses

EBITDA

EBITDA Margin (%)

Other Income

Depreciation

Finance Cost

PBT

Tax

PAT

Minority Interest & Share of profit/ (loss) in associate company

PAT after adjustments

PAT Margin (%)

Comprehensive Income

Total Profit including Comprehensive Income (Net of tax)

EPS (INR)(not annualised)

9M‐FY20

9M‐FY19

Y‐o‐Y

3,904

3,105

799

4,357

3,189

1,168

(10.4)%

(2.6)%

(31.6)%

20.46%

26.81%

(635) Bps

173

591

146

445

(4)

441

183

953

332

621

11.31%

14.25%

441

16.24

(6)

615

22.83

111.1%

31.0%

(5.5)%

(38.0)%

(56.0)%

(28.3)%

(29.0)%

(294) Bps

(28.3)%

(28.9)%

10 H1‐FY20 Consolidated Balance Sheet (Ind‐As)

Equity and Liabilities (INR Mn) Shareholders Fund

Share Capital

Other Equity

Non Controlling Interest

Total Equity

Non Current Liabilities

Long Term borrowings

Lease liability

Deferred tax liabilities (Net)

Long tem provisions

Total Non‐Current Liabilities

Current Liabilities

Short Term Borrowings

Trades payables

Other Financial Liabilities

Other Current Liabilities

Short Term Provisions

Current Tax Liabilities (Net)

Total Current Liabilities

Total

H1‐FY20

FY19

272

5,747

(41)

5,978

2,136

490

185

116

2,949

9,018

272

5,445

(42)

5,675

‐

1,969

298

151

2,557

8,302

Assets (INR Mn) Non Current Assets

Fixed Assets

Property, Plant & Equipment

Intangible assets

Intangible assets under development

Right of use Assets

Investments

Long Term Loan and Advances

Other Financial Assets

Other Non Current Assets

Total Non‐Current Assets

Current Assets

Inventories

Trade Receivables

Cash and cash equivalents

Short Term loan and advances

Other Financial Assets

Other Current Assets

Total Current Assets

Total

H1‐FY20

FY19

324

495

6,794

1,410

‐

286

8,523

9,018

306

‐

443

6,027

1,590

212

7,859

8,302 10

11 Shemaroo In Digital Media

Q3‐FY20 Digital Media Performance (INR Mn)

Shemaroo was one of the early Indian media companies to syndicate its library in the high growth digital media platforms, thereby gaining early mover advantage

426

482

•

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

Q3‐FY19

Q3‐FY20

9M‐FY20 Digital Media Performance (INR Mn)

Internet and OTT

• Shemaroo has agreements with various internet video YouTube, like platforms Hotstar, Reliance Jio, Apple iTunes, Google Play etc.

Digital Media Presence

Mobile Value Added services (MVAS) / Mobile Internet

ShemarooMe

1,520

• The company has agreements

• ShemarooMe is the OTT

with major telecom operators, namely Airtel, Vodafone, Idea to distribute videos, full songs, live streaming etc. under MVAS

platform launched in Feb’19 – offering vast content library across Bollywood, Gujarati, Marathi, Kids, Punjabi, Devotional etc.

1,271

9M‐FY19

9M‐FY20

12 Shemaroo in Traditional Media

Television Syndication • Shemaroo has a diverse content library which it syndicates rights to various Satellite

Channels, Cable & 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

Q3‐FY20 Traditional Media Performance (INR Mn)

1,063

488

Q3‐FY19

Q3‐FY20

9M‐FY20 Traditional Media Performance (INR Mn)

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

3,085

2,384

Advertisement led Satellite Channel • Shemaroo launched a satellite FTA channel named as ‘Shemaroo MarathiBana’ in Dec’19,

targeted to be a prominent leader in the Marathi movie genre

• The company has over the years built a strong library in the regional space through which

it plans to strategically capture a vacuum in the Marathi movie genre

9M‐FY19

9M‐FY20

13 Consolidated Income Statement (Ind‐As)

Particulars (INR Mn) Revenue from Operations

Total Expenses

EBITDA

EBITDA Margin (%)

Other Income

Depreciation

Finance Cost

PBT

Tax

PAT

Minority Interest & Share of profit/ (loss) in associate company

PAT after adjustments

PAT Margin (%)

Comprehensive Income

Total Profit including Comprehensive Income (Net of tax)

EPS (INR) (not annualised)

FY17

FY18

FY19

4,255

2,980

1,275

29.96%

324

938

342

596

614

14.43%

‐

614

22.60

4,891

3,465

1,426

29.16%

307

1,080

367

713

(1)

712

14.56%

715

26.18

5,678

4,100

1,578

27.79%

256

1,284

457

827

830

14.62%

833

30.52

14 Consolidated Balance Sheet (Ind‐As)

Equity and Liabilities (INR Mn)

FY18

FY19

Assets (INR Mn)

FY18

FY19

Shareholders Fund

Share Capital Other Equity

Total Equity Non controlling interest

Non Current Liabilities

Long Term borrowings

Deferred tax liabilities (Net) Long tem provisions

Total Non‐Current Liabilities Current Liabilities

Short Term Borrowings Trades payables

Other Financial Liabilities Other Current Liabilities

Short Term Provisions Current Tax Liabilities (Net)

Total Current Liabilities Total

272 4,662

4,934 (36)

36 16

1,858 181

135 28

15 125

2,342 7,313

Non Current Assets

Fixed Assets Property, Plant & Equipment

Intangible assets Investments

Long Term Loan and Advances

Other Financial Assets

Other Non Current Assets Total Non‐Current Assets

Current Assets

Inventories Trade Receivables

Cash and cash equivalents Short Term loan and advances

Other Financial Assets Other Current Assets

Total Current Assets Total

272 5,445

5,717 (42)

34 32

1,969 298

63 68

8 151

2,557 8,302

323

10 67

‐

31 434

5,297 1,406

13 4

‐ 159

6,879 7,313

306

10 65

58 443

6,027 1,590

16 6

8 212

7,859 8,302

Historical Consolidated Financial Charts

Operational Revenue* (INR Mn)

EBITDA (INR Mn) and EBITDA Margin (%)

5 Year CAGR 16.50%

5,678

4,891

4,255

3,751

3,234

2,646

5 Year CAGR 19.67%

28.69%

29.96%

29.16%

24.30%

26.84%

1,275

1,426

27.79%

1,578

1,076

868

643

2,000

1,600

1,200

800

400

‐

FY14

FY15

FY16

FY17

FY18

FY19

FY14

FY15

FY16

FY17

FY18

FY19

Net Worth (INR Mn) and ROCE (%)

5 Year CAGR 26.79%

18.60%

19.60%

19.20%

18.10%

3,174

3,649

4,232

1,745

20.31%

19.96%

5,717

4,932

7,000

5,250

3,500

1,750

‐

900

600

300

‐

23.00%

20.00%

17.00%

14.00%

11.00%

8.00%

5.00%

PAT (INR Mn) and EPS (INR)

5 Year CAGR 25.00%

26.18 712

22.60

614

19.18

521

17.35

409

13.68

272

30.52

830

FY14

FY15

FY16

FY17

FY18

FY19

FY14

FY15

FY16

FY17

FY18

FY19

* Note: FY17 to FY19 numbers are as per IND‐As

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

16 Capital Market

20.0%

10.0%

0.0%

‐10.0%

‐20.0%

‐30.0%

‐40.0%

‐50.0%

‐60.0%

‐70.0%

‐80.0%

Jan‐19

Feb‐19

Mar‐19

Apr‐19

May‐19

Jun‐19

Jul‐19

Aug‐19

Sep‐19

Oct‐19

Nov‐19

Dec‐19

Shemaroo

BSE Sensex

Price Data (As of 31st December, 2019)

Face Value

Market Price

52 Week H/L

Market Cap (INR Mn)

Equity Shares Outstanding (Mn)

1 Year Avg. Trading Volume ('000)

INR

10.0

140.4

454.9/131.0

3,817.7

27.2

13.4

Share Holding Pattern as on 31st December, 2019

Public 13.67%

FII 20.24%

DII 0.26%

Promoters 65.83%

17 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

THANK YOU

← All Transcripts SHEMAROO Stock Page →

Shemaroo Entertainment Limited has informed the Exchange regarding Investor Presentation

Market Movers