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Eros
Dependence on theatrical business is reducing even though it commands 30% CAGR
growth
They have adapted to the Studio model followed by Disney and Warner
They enter into exclusive licensing contracts for selling satellite rights to broadcasters
and most of the rights are sold even before the release of the movie.
The company follows a portfolio approach wherein they do a huge bouquet of films
across genres, ~70-75 movies helping them de-risk their portfolio.
They expect to do more than 75 movies a year in the coming years of which 15%
would be bollywood and rest regional. They target to do 8-10 high budget movies
yielding high margins, with 2 being self production.
Hathway Cable
The company expects to roll out 1.2mn boxes in FY13. It currently has an inventory of
0.64mn boxes.
For Phase I and II, the company will incur a capex of ~Rs6bn.
Post some debt raising, its current Debt:Equity of 0.3 may rise to 0.5 by June, 2012.
Hathway has no plans for raising equity in the near term, however if an interesting
acquisition of a cable operator comes up, they may consider.
The company has a contract with Intelenet to set up call centres in Mumbai for its
broadband services, which if works out well, it will extend for its cable services as well.
INCableNet (Hinduja Ventures)
The JVs contribute 10% of the subscription revenues for the company, balance is
contributed through direct points.
The company expects to digitise ~2.5mn customers in Phase I, of which 0.5mn are
already digitised.
60% of their revenue is contributed by carriage fee which may reduce to 20-30% post
digitisation.
In a digitized scenario, the basic tier price would be Rs150 including only FTA channels.
Revenue received for FTA channels through direct points will solely be owned by the
company and not paid to the broadcaster. Will receive 20% of FTA revenues from JVs.
The company expects an ARPU of ~Rs200 in Mumbai and Delhi in Phase I.
INCableNet plans to reach 0.2mn broadband subscribers by 2014 from the current
40,000 broadband homes.
Balaji Telefilms
The company is not into acquisition model for movies because of the cost and risk
associated. They work on a co-production model where the creative risk is shared but
the financial risk remains with Balaji.
The company has 4-6 movies lined up for 2012.
Their content business continues to make losses due to large volumes.
The business has high operating leverage depending on volumes.
DB Corp
Highest ad growth market for the company is MP followed by Rajasthan.
Chhattisgarh is expected to see 17 new power projects leading to increase in advertising
through Print.
The company will launch its 5th Marathi edition in Sholapur in March, 2012. Bihar
edition launch slated for FY13.
DB Corp earns Rs5-6 mn per month from Ujjain edition.
The company is present mainly in markets where the per capita income is above the
national average.
With Phase-III, the company may add 25-30 radio stations with a spend of ~Rs400-
500mn.
Den Networks
The company has started Ad campaigns on TV and Print to make viewers aware of the
digitisation mandate and market its digital STBs.
The company has started offering its STBs at Rs799.
To enable smooth implementation of migrating their analog subscribers to digital in
phase I, the company has placed an order for 2mn STBs with Skyworth and Huawei for
which it needs a capex of ~Rs3bn.
The company will venture into offering broadband services post the digital roll-out.
