Mobile Value Added Services – India November 2014
Executive Summary
Market Overview
Drivers & Challenges
Mobile Value Added Services market size in India was valued at around INR x1 bn in 20- Around x2% of the total revenue from p3 come from p4 as per 20-- - - Product1 and Product2 usage are expected to grow side-by-side, helping each other mutually Drivers:
Challenges:
Rising Mobile Device Adoption and Colossal Wireless Subscriber Base Increase in Disposable Income and Economic Advancement Introduction and Availability of Next Generation Cellular Networks Growing Demand for Rich Digital Contents Soaring Demand in Enterprises Extensive Usage of Plastic Money
Low Smartphone and Tablet Penetration in Rural Areas Low Average Revenue Per User
Key Players
Competitive Landscape
Geodesic Ltd.
OnMobile Global Ltd.
ACL Mobile Ltd.
Altruist Technologies Pvt. Ltd.
Comviva Technologies Ltd.
Spice Digital Ltd.
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•Macroeconomic Indicators •Introduction •Market Overview •Drivers and Challenges •Competitive Landscape
•Market Opportunities •Strategic Recommendations •Appendix
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Economic Indicators (-/-) GDP at Factor Cost: Quarterly
INR tn c4 b4 a4
15
13
d1 c1 b1
12
a1
14
c3 b3 a3
d2 c2 b2 a2
11
Q1
Q2
Q3
Q4
Inflation Rate: Monthly % 2.0
p
1.5
s
q
1.0
t r
0.5 0.0 Jun 2013 - Jul 2013
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
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Oct 2013 - Nov 2013 4
Introduction Mobile Value Added Services (MVAS) – Overview • Mobile Value Added Services (MVAS) are the services provided by telecom operators directly or indirectly, beyond standard voice calls • Majority of the MVAS products have the following common characteristics, It is not a form of basic service, rather adds value to total service offering Stands alone in terms of profitability Stimulates incremental demand for core service(s) It may stand alone operationally It does not cannibalize basic service(s) It may provide operational or administrative synergy among other services and it is not merely for diversification
Fundamental MVAS Value Chain Content Owner/ Service Provider
Solution Developer
Technology Enabler
Network Operator
Consumer
• The basic content of the MVAS product which will be served to consumers, are provided by content owner or service providers • Solution developers create the core MVAS solution using software and technology tools • Technology enabler provides the technology platform for the MVAS solution to be developed • Network operators host the MVAS solution on their networks and offer the product to their customers MOBILE VAS MARKET IN INDIA 2014.PPT
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Product1 and Product2 usage are expected to grow side-byside, helping each other mutually Market Overview – India • Mobile Value Added Services market size in India was valued at around INR x1 bn in 20-• P1 and p2 prices have forced telecom companies in India to depend on revenues from other services such as MVAS for higher profitability Around x2% of the total revenue from p3 come from p4 as per 20-- - - Telecom operators, investing heavily on p5 and p6, is looking to leveraging p7 to generate returns and overcome aspect1
• P8 in India is at a growth phase currently wherein adoption has slowly started picking up along with p9 consumption, mutually benefiting each other to grow significantly Considerable adoption is expected between 20-- and 20-- and p10 will attain maturity phase afterwards P11, on the other hand, is in its initiation phase with a number of S1 yet to launch p12
Mobile VAS – Market Size & Growth INR bn a6
+y% a1
20--
a2
20--
a3
20--
a4
20--
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a5
20--
20-6
Drivers & Challenges – Summary
Drivers Rising Mobile Device Adoption and Colossal Wireless Subscriber Base Increase in Disposable Income and Economic Advancement
Challenges
Introduction and Availability of Next Generation Cellular Networks
Low Penetration in Rural Areas
Growing Demand for Rich Mobile Contents
Low Average Revenue Per User
Soaring Enterprise Demand Extensive Usage of Plastic Money
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Porter’s Five Forces Analysis
SAMPLE
Threat of New Entrants • Text text text text text text text text text text text text text text text text text text text text text text text text text Impact Medium Bargaining Power of Suppliers • Text text text text text text text text text text text text text text text text text text text text text text text text text
Impact Medium
Impact Medium
Competitive Rivalry • Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Threat of Substitutes • Text text text text text text text text text text text text text text text text text text text text text text text text text
MOBILE VAS MARKET IN INDIA 2014.PPT
Impact High Bargaining Power of Buyers • Text text text text text text text text text text text text text text text text text text text text text text text text text
Impact Low
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Competitive Benchmarking (-/-) Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3)
Operating Margin
% b1
SAMPLE Net Margin d1
c1 c2
a1 a2
d2
b2
0 company1
company2
company3
company4
• Company1 recorded operating margin of -%, higher than that of company2, company3 and company4 which recorded operating margin of -%, - and -% respectively • Thermax however recorded the highest net margin of -% higher than that of Ion Exchange, SPML and Va Tech Wabag which recorded net margins of -%, -% and -% respectively
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Public: Domestic Company – Company 1 (1/4) Company Information
SAMPLE Offices and Centres – India
Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange
Head Office
Products and Services Category Sectors (EPC)
Products/Services
Key People Name
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Designation
10
Public: Domestic Company – Company 1 (2/4)
SAMPLE
Financial Snapshot
Key Ratios
Total Income
Net Profit/Loss
Particulars
INR bn
INR bn s1
t1
s2 t2
s4 s3 t3 t4
0 2010
2011
2012
2013
Financial Summary
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 • The company incurred a net loss of INR - bn in FY 2013, as compared to net profit of INR - bn in FY 2012 • The company reported total income of INR - bn in FY 2013, registering a decrease of -% over FY 2012 • The company earned an operating margin of -% in FY 2013, a decrease of percentage points over FY 2012 • The company reported debt to equity ratio of - in FY 2013, an increase of % over FY 2012
Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Key Financial Performance Indicators Indicators
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Value (17/01/2014)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
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Decline
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Public: Domestic Company – Company 1 (3/4)
SAMPLE
Key Business Segments
Key Geographic Segments
Construction and Engineering
India
e1
e2
e3
e4
f1
f2
f3
f4
2010
2011
2012
2013
g1 0%
0% 2013
Overseas
Business Highlights
Description
News • Text text text text text text text text text text text text text text text text text text text text text text text
Overview
text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Extensive Product Portfolio
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
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SAMPLE
Public: Domestic Company – Company 1 (4/4)
S
W
O
T
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SAMPLE
Private: Domestic Company – Company 2 (1/5) Company Information
Offices and Centres – India
Corporate Address
Tel No. Fax No. Website Ahmedabad
Year of Incorporation
Head Office Products and Services Category Products
Products/Services Key People Name
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Designation
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SAMPLE
Private: Domestic Company – Company 2 (2/5) Shareholders of the Company as on 28.09.2012
Name
Ownership Structure
No. of Shares held
Corporate Bodies
Foreign holdings
X X
30% Total
70%
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SAMPLE
Private: Domestic Company – Company 2 (3/5) Financial Snapshot
Key Ratios
Total Income
Particulars
Net Profit/Loss
INR mn
INR mn u4 u2 u1
v4
v1
v2
u3 v3
2010
2011
2012
0
2013
Financial Summary
2011
2010
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
• The company reported total income of INR - mn in FY 2013, registering an increase of -% over FY 2012
Leverage Ratios
• The company reported debt to equity ratio of - in FY 2013, a decrease of -% over FY 2012
2012
Profitability Ratios
• The company earned a net profit of INR - mn in FY 2013, as compared to net loss of INR - mn in FY 2012
• The company earned an operating margin of -% in FY 2013, an increase of - percentage points over FY 2012
y-o-y change 2013 (2013-12)
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
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Decline
16
SAMPLE
Private: Domestic Company – Company 2 (4/5) Business Highlights
Description
News • Text text text text text text text text text text text text text text text text text text text text text text text
Overview
text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Extensive Product Portfolio
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
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Private: Domestic Company – Company 2 – SWOT Analysis (5/5)
SAMPLE
S
W
O
T
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Market Opportunity - Potential Verticals (1/2)
Education
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text text text text text text text
Financial Services
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text text text text text text text
Media & Entertainment
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text text text text text text text
Retail
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text • text text text text text text text text text text text text text text text text text text text text text text text text text MOBILE VAS MARKET IN INDIA 2014.PPT
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Strategic Recommendations (-/-) •Companies need to focus on specific1 and specific2 early to leverage on specific3
Recommendation1
Recommendation2
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Appendix Ratio
Calculations
Ratio
Calculations
Operating Margin
(Operating Income/Revenues)*100
Current Ratio
Current Assets / Current Liabilities
Net Margin
(Net Profit / Revenues) *100
Cash Ratio
Profit Before Tax Margin
(Income Before Tax / Revenues *100
{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Debt to Equity
Total Liabilities / Shareholders Equity
Debt to Capital Ratio
{Total Debt / (Shareholders Equity + Total Debt)}
Interest Coverage Ratio
EBIT / Interest Expense
Fixed Asset Turnover
Sales / Fixed Assets
Asset Turnover
Sales / Total Assets
Return on Equity (ROE) Return on Capital (ROCE) Return on Working Capital
(Net Income / Shareholders Equity)*100 EBIT / (Total Assets – Current Liabilities)*100 (EBIT / Working Capital) *100
Return on Assets
(EBIT / Total Assets)*100
Return on Fixed Assets
(EBIT / Fixed Assets) *100
Operating Costs (% of Sales)
(Operating Expenses / Sales) *100
Current Asset Turnover
Sales / Current Assets
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Working Capital Turnover
Sales / Working Capital
Interest Costs (% of Sales)
(Interest Expenses / Sales) *100
Capital Employed Turnover
Sales / (Shareholders Equity + Total Debt)
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Sources of Information
PRIMARY RESEARCH Interviews Leading Industry Experts
SECONDARY RESEARCH Print Media
Electronic Media
Leading Newspapers
Regulatory Websites
Magazines and Journals
Telecommunication & Technology Magazines
Annual Reports of Companies
Company Websites Premium Databases Open Sources
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