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FM Radio Broadcasting Market – India October 2014

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Page 1: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

FM Radio Broadcasting Market – India

October 2014

Page 2: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

2

SAMPLE

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Executive Summary

Market

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 & Challenges

Competitive Landscape

Drivers – Increase in FM penetration – Increase of advertising – Increase in usage of mobile phones – Demographical alterations – Political advertising – Introduction of new performance

measurement tool

Challenges

– Lack of content differentiation

– Presence of few channels

Trends

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

Page 3: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

3

•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

Page 4: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

4

Macroeconomic Indicators (1/3)

11

12

13

14

15

INR tn

Q4

c4

b4

a4

Q3

c3

b3

a3

Q2

d2

c2

b2

a2

Q1

d1

c1

b1

a1

2013-14 2012-13 2011-12 2010-11

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

Aug 2013 - Sep 2013

q p

%

Nov 2013 - Dec 2013 Sep 2013 - Oct 2013

-t

Oct 2013 - Nov 2013

s

Jul 2013 - Aug 2013

r

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 5: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

5

SAMPLE FM broadcasting is deemed as a highly profitable sector in the …

FM Radio Broadcasting – Indian Market Overview (1/2)

• 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 -%

FM Radio – Reach (2013) Private FM Stations – Growth

0

INR bn

x7

2018e

x6

2017e

x5

2016e

x4

2015e

x3

2014e

x2

2013

x1

FM Radio – Market Size & Growth

x13

0

No x12

2011

x11

2010

x10

2009

x9

2008

x8

x14

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 6: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

6

SAMPLE …emergence of localized content that gets transmitted

Community Radio Stations (2/2)

Operational

Community

Radio Station

s in India

Operational

Community

Radio Station

s - Segmentation

0

y1

y6

Units No

y5

2011

y4

2010

y3

2009

y2

2008 2013

y7

y8

y9 g2 g1 g3

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 7: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

7

Drivers & Challenges – Summary

Drivers

Increase in FM penetration

Increase of advertising

Increase in usage of mobile phones

Demographical alterations

Political advertising

Introduction of new performance measurement tool

Challenges

Lack of content differentiation

Presence of few channels

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 8: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

8

Government Participation – Summary

Initiatives

Ministry of Information and Broadcasting

Telecom Regulatory Authority of India

FM channels are warned against airing vulgar content

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 9: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

9

FM radio forays into feature films FM radio to broadcast news

bulletins from AIR

Retail advertising shows healthy growth Digital radio spreads to India

Key Trends

Trends – Summary

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 10: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

10

SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry • Text

Bargaining Power of Buyers • Text

Threat of New Entrants • Text

Impact Medium

Impact Low

Impact Medium

Bargaining Power of Suppliers • Text

Impact Medium

Threat of Substitutes • Text

Impact High

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 11: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

11

SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/3)

Competitive Benchmarking (2/5)

0

%

Sun TV Network Ltd.

m9

m8

m7

HT Media Ltd.

m6 m5

m4

Entertainment Network India Ltd.

m3 m2

m1

Net Margin Operating Margin Gross Margin

• 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

Page 12: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

12

SAMPLE Public: Player 1 (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

Products & Services FM Radio Broadcasting, Advertising Services

Name Designation

P1 D1

P2 D2

P3 D3

Head Office

Mumbai

Corporate Address

Tel No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 13: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

13

SAMPLE Financial Snapshot Key Ratios

Financial Summary

Key Financial Performance Indicators

Indicators Value (17/09/2014)

Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Absolute)

Improved Decline

Net Profit/Loss

Total Income

0 0

Profit INR mn

Revenue INR mn

2014

g8

g7

2013

g6

g5

2012

g4

g3

2011

g2

g1

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

• 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

Public: Player 1 (2/5)

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 14: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

14

SAMPLE Key Business Segments Key Geographic Segments

Description Details

Overview

• Text

• Text

• Text

Business Highlights (1/2)

Public: Player 1 (3/5)

2014

p4

2013

p3

2012

p2

p9

p8

2011

p1

p7 p6

p5

p11

p12

p10

2014

q4

2013

q3

2012

q2

2011

q1

q6

q5

q8

q7

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 15: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

15

SAMPLE Business Highlights (2/2)

Description News

Services • Text

• Text

Recent Update • Text

• Text

Public: Player 1 (4/5)

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 16: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

16

SAMPLE • Text

• Text

• Text • Text

T O

W S

Public: Player 1 – SWOT Analysis (5/5)

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 17: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

17

SAMPLE

Key People

Products and Services

Company Information Offices and Centres – India

Registered Address

Tel No.

Website

Year of Incorporation

Head Office

Kolkata

Category Products/Services

Services FM Broadcasting

Private: Player 2 (1/5)

Name Designation

P1 D1

P2 D2

P3 D3

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 18: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

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SAMPLE Shareholders of the Company Ownership Structure

Name No. of Shares held

S1 N1

S2 N2

S3 N3

S4 N4

S5 N5

Total

Private: Player 2 – Shareholding Pattern (2/5)

s7

s6

s9 s8

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 19: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

19

SAMPLE Financial Snapshot Key Ratios

Financial Summary

• Company incurred a net loss of INR x1 mn in FY 2013, as compared to net loss of INR x2 mn in FY 2012

• It reported total income of INR x3 mn in FY 2013, registering a decrease of x4% over FY 2012

• 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

Particulars 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 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 Decline

Total Income Profit / Loss

0

INR mn

INR mn

2013

y8

y7

2012

y5

y6

2011

y3

y4

2010

y1

y2

Private: Player 2 (3/5)

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 20: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

20

SAMPLE Business Highlights

Description News

Overview • Text

• Text

Financials • Text

Recent Update • Text

• Text

Private: Player 2 (4/5)

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 21: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

21

SAMPLE • Text

• Text

• Text • Text

T O

W S

Private: Player 2 – SWOT Analysis (5/5)

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 22: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

22

SAMPLE Regional Players (1/4)

Player 3

Corporate Information Key People

Name Designation

P1 D1

P2 D2

P3 D3

Business Highlights

• Text

• Text

Registered Address

Tel No.

Website

Year of Incorporation

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 23: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

23

SAMPLE Strategic Recommendations (1/3)

Text

• Text

• Text

• Text

• Text

FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT

Page 24: FM Radio Broadcasting Market India · FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT Executive Summary Market FM Radio Broadcasting, a sub-set of Media and Entertainment, is slated

24

Thank you for the attention

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FM Radio Broadcasting Market – India report is part of Netscribes’ Retail and Services Series. For any queries or customized research requirements, contact us at:

Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction.

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FM RADIO BROADCASTING MARKET IN INDIA 2014.PPT