FM Radio Broadcasting Market – India October 2014
Executive Summary
Market
SAMPLE
FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated to grow at o1% y-o-y The radio sector consists of 245 private FM radio stations over and above the public service broadcaster All India Radio Government’s recent approval of introducing Phase III auctions has opened avenues for more private channels to operate in this space
Drivers Drivers & Challenges
Trends
Competitive Landscape
Challenges
– Increase in FM penetration – Increase of advertising – Increase in usage of mobile phones – Demographical alterations – Political advertising – Introduction of new performance measurement tool
– Lack of content differentiation – Presence of few channels
FM radio to broadcast news bulletins from AIR Digital radio spreads to India Retail advertising shows healthy growth FM radio forays into feature films Major Players Player 1
Player 2
Player 3
Player 4
Player 5
Player 6
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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•Macroeconomic Indicators •Introduction Parent Industry FM Radio
•Market Overview •Phase III •Rural Scenario •Drivers & Challenges •Government Regulations •Trends •Competitive Landscape •Strategic Recommendations •Appendix FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Macroeconomic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15 14 d1 c1 13 b1 12 a1
c4 b4 a4
c3 b3 a3
d2 c2 b2 a2
11
Q1
Q2 2010-11
2011-12
2012-13
Q3 2013-14
Q4
Inflation Rate: Monthly % 2 1
p
r
s
q
0 -1
-t
-2
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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FM broadcasting is deemed as a highly profitable sector in the …
SAMPLE
FM Radio Broadcasting – Indian Market Overview (1/2)
FM Radio – Market Size & Growth • The radio sector consists of - private FM radio stations over and above the public service broadcaster All India Radio (AIR) • AIR boasts of having the highest network of broadcasting centers with - medium wave (MW), short wave (SW) and - FM transmitters • Embargo on broadcasting news and current affairs has also been lifted • Limit for Foreign Direct Investment has also been raised from the earlier -% to -%
INR bn x7 x4
x1
x2
x3
2013
2014e
2015e
x5
x6
0
FM Radio – Reach (2013)
2016e
2017e
2018e
Private FM Stations – Growth
x14 No
x12 x8
x9
x10
x11
2009
2010
2011
x13 0 2008 FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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‌emergence of localized content that gets transmitted
SAMPLE
Community Radio Stations (2/2) Operati onal Commu nity Radio Station s in India
Operati onal Commu nity Radio Station sSegmen tation
Units No y5 y6 y4 y1
y2
2008
2009
y3
0
g1
g2
2010
2011
2013
y9
g3
y8 y7
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Drivers & Challenges – Summary
Drivers Increase in FM penetration Increase of advertising
Challenges
Increase in usage of mobile phones
Lack of content differentiation
Demographical alterations
Presence of few channels
Political advertising
Introduction of new performance measurement tool
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Government Participation – Summary
Ministry of Information and Broadcasting
Initiatives Telecom Regulatory Authority of India
FM channels are warned against airing vulgar content
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Trends – Summary
FM radio forays into feature films
FM radio to broadcast news bulletins from AIR
Key Trends Retail advertising shows healthy growth
Digital radio spreads to India
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Porter’s Five Forces Analysis
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Threat of New Entrants • Text
Impact Medium
Impact Medium
Bargaining Power of Suppliers • Text
Impact Low
Impact Medium
Competitive Rivalry
Bargaining Power of Buyers • Text
• Text
Impact High Threat of Substitutes • Text
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Competitive Benchmarking (2/5)
SAMPLE
Key Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/3) Gross Margin
%
Operating Margin
Net Margin m8 m9
m2
m3 m5
0
m1 Entertainment Network India Ltd.
m6 m7
m4 HT Media Ltd.
Sun TV Network Ltd.
• Player 1 recorded gross margin of -%, higher than both player 2 and player 3 which recorded gross margin of -% and % respectively • Player 1 recorded operating margin of -%, higher than both player 2 and player 3 which recorded operating margin of % and -% respectively • Player 1 recorded net margin of -%, higher than both player 2 and player 3 which recorded net margin of -% and -% respectively
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Public: Player 1 (1/5) Company Information
SAMPLE Offices and Centres – India
Corporate Address
Tel No. Website Year of Incorporation Ticker Symbol
Mumbai
Stock Exchange
Head Office
Products and Services Category
Products/Services
Products & Services
FM Radio Broadcasting, Advertising Services
Key People Name
Designation
P1
D1
P2
D2
P3
D3
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Public: Player 1 (2/5)
SAMPLE
Financial Snapshot
Key Ratios
Total Income
Revenue INR mn
Profit INR mn
Net Profit/Loss g2
g4
g1
g3
g8
g6
g7
g5
0
0 2011
2012
Financial Summary
2013
2014
• The company incurred a net profit of INR u1mn in FY 2014 and INR u2 mn in FY 2013 • The company reported total income of INR u3 mn in FY 2014, registering an increase of u4% over FY 2013 • The company earned an operating margin of u5% in FY 2014, an increase of u6 percentage points over FY 2013
• The company reported debt to current ratio of u7 in FY 2014, a decrease of u8% over FY 2013
Key Financial Performance Indicators Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
Value (17/09/2014)
Particulars
y-o-y change (2014-13)
2014
2013
2012
2011
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
Decline
13
Public: Player 1 (3/5)
SAMPLE
Key Business Segments p10
Key Geographic Segments
p11
q7
p12
q8 p3
p2
p5 p6 p7
p8
q5
p9
q6
2011
2012
2013
p4
q1
p1
2014
2011
q2
q3
q4
2012
2013
2014
Business Highlights (1/2) Description
Details
Overview
• Text • Text • Text
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Public: Player 1 (4/5) Business Highlights (2/2) Description
SAMPLE News
Services
• Text • Text
Recent Update
• Text • Text
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Public: Player 1 – SWOT Analysis (5/5)
SAMPLE
• Text
• Text
• Text
S
W
O
T • Text
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Private: Player 2 (1/5) Company Information
SAMPLE Offices and Centres – India
Registered Address
Tel No. Kolkata
Website Year of Incorporation
Head Office
Products and Services Category Services
Products/Services FM Broadcasting
Key People Name
Designation
P1
D1
P2
D2
P3
D3
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Private: Player 2 – Shareholding Pattern (2/5)
SAMPLE
Shareholders of the Company Name
S1
Ownership Structure No. of Shares held
s8
s9
N1 s7
S2
N2
S3
N3
S4
N4
S5
N5
Total
s6
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Private: Player 2 (3/5)
SAMPLE
Financial Snapshot
Key Ratios
Total Income
Profit / Loss
INR mn
Particulars
INR mn
y1
y2
y3
y4
y5
y6
y7 y8
0
y-o-y change (2013-12)
2013
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios 2010
2011
2012
2013
Financial Summary
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
• Company incurred a net loss of INR x1 mn in FY 2013, as compared to net loss of INR x2 mn in FY 2012
Liquidity Ratios
• It reported total income of INR x3 mn in FY 2013, registering a decrease of x4% over FY 2012
Leverage Ratios
• Earned an operating margin of x5% in FY 2013, a decrease of x5 percentage points over FY 2012 • The company reported a debt to equity ratio of x6 in FY 2013, a decrease of x7% over FY 2012
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
Decline
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Private: Player 2 (4/5) Business Highlights Description
Overview
SAMPLE News
• Text • Text
Financials
• Text
Recent Update
• Text • Text
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Private: Player 2 – SWOT Analysis (5/5)
SAMPLE
• Text
• Text
• Text
S
W
O
T • Text
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Regional Players (1/4)
SAMPLE
Player 3 Corporate Information
Key People Name
Registered Address Tel No. Website
Designation
P1
D1
P2
D2
P3
D3
Year of Incorporation
Business Highlights • Text • Text
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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Strategic Recommendations (1/3)
SAMPLE
Text
• Text • Text • Text • Text
FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT
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