DSIJ.in JULY 22 - AUG 4, 2019 I DALAL STREET INVESTMENT JOURNAL (^73)
Print media industry is the second largest contributor to the
M&E industry. The print media has seen significant growth as
rising income levels and growing lifestyles have driven growth
in magazine segment. With increasing use of internet, coupled
with easy availability of 3G and 4G, OOH segment has
witnessed a massive growth. Animation & gaming segment has
seen growth of more than 20 per cent on account of HD
animated movies, kids genre TV channels and mobile gaming.
For the radio industry, the Union cabinet has granted
permission to 135 FM channels under Phase III. The Indian
film industry has grown considerably led by digitisation.
Online video platforms like YouTube would capitalise on the
massive shift in consumer behaviour.
To analyse the overall performance in FY19, we have
considered a set of top 32 media and entertainment companies
by market capitalisation. During FY19, the aggregate sales of
these companies grew by 32 per cent YoY. The aggregate
operating profit of these companies grew by 15 per cent YoY.
However, aggregate PAT de-grew by 31 per cent YoY. Zee
Entertainment Enterprises Limited (ZEEL) reported 19 per
cent YoY growth in terms of its revenue and 24 per cent YoY
growth in operating profit in FY19. PAT also grew by 6 per cent
YoY. The ESSEL group (promoters of ZEEL) are in advance
stage to divest their 50 per cent stake to a strategic partner. We
see the company management looking for an investor to drive
growth to the next level in digital space and deleverage balance
sheet.
Sun TV Networks has reported robust growth in terms of
revenue, operating profit and PAT by 28 per cent, 30 per cent and
27 per cent, respectively during FY19. PVR delivered blockbuster
numbers in FY19 with jump in terms of revenue, operating
profit and PAT by 32 per cent, 46 per cent and 53 per cent,
respectively during FY19. Dish TV revenue has grown by 33 per
cent and operating profit has increased by 55 per cent. However,
the net loss has widened in FY19. TV18 Broadcast also posted
robust numbers with growth in revenue and operating profit by
244 per cent and 432 per cent, respectively, on a YoY basis. Also,
the bottomline has turned positive in FY19.
We expect M&E industry to grow at a healthy pace led by
government initiatives like Make in India, Skill India and
Digital India. Further, we expect the increasing digitisation and
rising usage of internet over the last couple of years to augur
well for the industry. Furthermore, increased spending on
advertising is likely to lead to significant growth in overall
advertising revenue in the coming years. Also, the rapidly
growing demand for HD and rolling out of 5G data would
further aid growth of the industry. Overall, we see the prospects
of M&E industry to remain bright for the long term.
16.32 15.41 23.14 18.67 24.07 5.98 5.94 18.98 20.72 38.64 96.05 96.05 96.04
28.80 26.14 23.39 27.66 30.09 27.48 10.17 25.53 26.71 26.13 197.04 197.04 197.04
39.29 26.68 20.49 32.19 45.91 52.72 47.26 16.53 12.25 10.75 46.74 46.74 46.74
-0.41 0.86 6.50 33.06 55.34 NA NA -2.37 20.92 2056.79 184.13 184.13 106.59
0.05 0.11 1.13 243.72 431.68 NA -54.80 -1.84 -0.79 2.89 342.87 342.87 342.87
17.60 20.38 15.90 6.56 -10.56 -15.47 -13.61 18.49 25.19 21.86 174.91 184.03 183.90
11.92 3.18 8.43 25.52 48.71 16.42 274.43 17.84 5.36 12.82 102.61 96.16 96.16
9.63 10.63 9.39 2.55 -8.47 -11.97 -9.42 14.83 18.45 22.19 59.28 62.28 65.38
-1.76 -10.76 -24.28 -6.15 -34.35 NA NA -2.10 -21.00 -31.85 476.77 195.32 193.57
-1.49 -2.25 0.25 186.04 NA NA NA -14.65 -16.01 0.55 517.68 517.68 517.68
6.68 5.45 7.31 20.02 21.75 15.46 22.45 19.09 17.64 28.36 45.77 46.71 46.71
7.48 11.57 22.77 15.59 19.35 51.23 -35.40 4.09 6.62 14.63 47.67 47.67 47.67
19.94 17.13 10.62 2.96 -3.88 10.51 16.36 19.14 19.08 13.40 29.83 29.83 29.83
-1.78 2.79 -9.48 12.53 -13.94 NA NA -9.85 21.85 -42.86 29.92 29.92 29.89
40.84 37.71 37.83 35.77 7.24 8.29 8.30 17.09 18.32 22.45 18.62 18.62 18.62
31.08 16.38 4.83 52.76 5.27 91.98 89.77 18.02 11.00 4.55 17.41 17.41 17.40
26.18 22.72 19.18 16.09 10.69 16.03 15.24 15.49 15.15 15.25 27.18 27.18 27.18
0.98 0.15 0.52 7.89 34.51 55.02 548.09 4.21 0.67 2.43 10.03 10.03 10.03
13.32 7.39 7.53 -4.59 NA NA 80.38 15.03 11.16 11.73 46.55 46.55 46.55
-118.95 -27.54 -39.51 -17.78 NA NA NA -92.84 -37.75 -12.96 20.56 20.56 20.56
23.33 26.38 24.35 -1.62 -72.08 -58.01 -11.56 13.68 18.60 21.67 73.39 73.39 73.39
14.38 -0.25 -8.76 33.47 233.00 43.85 NA 9.00 -0.16 -5.04 11.50 11.50 10.90
5.43 4.10 0.77 14.16 7.69 -57.32 32.62 11.17 7.86 1.02 112.46 112.46 98.35
0.42 -0.42 -0.19 19.78 30.61 -74.37 NA 5.46 -2.47 -1.01 47.08 47.08 47.08
-4.46 -3.71 -0.47 3.48 NA NA NA -6.81 -5.71 -0.79 20.23 20.23 15.19
-0.31 0.09 -0.22 119.99 NA NA NA -110.94 37.56 -78.70 113.27 113.27 113.27
23.47 22.17 21.93 3.00 -3.96 13.65 5.85 13.32 12.58 11.58 28.35 28.35 27.60
109.44 96.18 105.55 11.03 -26.26 -20.84 13.79 12.81 12.30 20.74 7.57 7.57 7.57
30.62 19.50 2309.56 -34.29 NA NA 56.98 13.09 10.45 9.94 17.49 17.49 14.92
-2.22 -2.16 -0.60 2.25 4.88 NA NA -38.92 -34.19 -11.82 87.21 87.21 87.21
-12.41 -12.47 -8.50 -6.38 NA NA NA -377.17 -120.85 -101.25 25.79 25.79 25.79
24.15 27.43 25.50 7.41 -9.90 15.25 -11.97 10.98 13.11 15.13 95.51 94.97 93.85
EPS () YoY Growth FY19 (%) RoNW (%) Equity ( in Cr.)
FY19 FY18 FY17 Sales Operating Profit PAT EPS FY19 FY18 FY17 FY19 FY18 FY17
martin jones
(Martin Jones)
#1