012 Joseph Hundah Africa

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012 Joseph Hundah Africa

  1. 1. 11MODERN TIMES GROUPCAPITAL MARKETS DAY 2013BUILDING IN AFRICABUILDING A MEDIA HOUSE IN A FASTGROWING REGIONJoseph HundahEXECUTIVE VICE PRESIDENT OF THEGROUP’S AFRICAN OPERATIONS
  2. 2. 2JOSEPH HUNDAHJOINED MTG IN 2011Born 1972EVP of the African operations in November 2012CEO of MTG’s African operations since joining the Group in 2011.Previously worked for South African pay-TV operator M-Net andSupersportManaging Director of the MultiChoice satellite pay-TV platform inNigeria.Favourite APP: 3D mini-golf challengeBest lap: Marathon des sables in under 2 days
  3. 3. CAGR GDP GROWTH OF 6,4%GDP GROWTH 2011-2018CAGR POPULATION GROWTH OF 2,7%POPULATION GROWTH 2011-20183SUB-SAHARAN AFRICASTRONG UNDERLYING GROWTH IN KEY SSA MARKETS…Source: IMF World Economic Outlook April 2013, Economist Intelligence Unit, GSMA Mobile Observatory 20127 out 10 fastest growing economies 2011-2015 are Sub-SaharanImproved fiscal management on government levelGenerally more favorable investment climateSignificant FDI growthMobile phone penetration at +60%6.4%4.9%1.5% 1.3%0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%SSA BRICS G7 Euro Area2.7%0.8%0.5%0.2%0.0%0.5%1.0%1.5%2.0%2.5%3.0%SSA BRICS G7 Euro Area
  4. 4. INDEXED TV AD MARKET GROWTHINDEX 2007 = 100AD SPEND PER CAPITA (US$)SIGNIFICANT UPSIDE4SUB-SAHARAN AFRICA…AND ADVERTISING MARKETS LOOK EVEN MORE PROMISINGSource: Internal MTG estimatesMarket CAGR will be in the 10-15% interval over the coming yearsTV advertising markets driven primarily by telcos, FMCGs, beverages and banksAd spend per capita significantly lagging behind that of e.g. CEE & RussiaGrowing middle class, growing levels of disposable income and growing urbanization represents a great opportunity for MTG0501001502002503003502007 2008 2009 2010 2011Average (GH, KN, NG, TZ) Western Europé CEE31252.1 0.8 0.7 0.5 0.305101520253035Russia CEE Kenya Nigeria Ghana Uganda Tanzania
  5. 5. -1002003004005002009 2010 2011 2012INDEXED SALES MTG AFRICA CAGR = 41%-600%-400%-200%0%2009 2010 2011 2012INDEXED EBIT MARGIN MTG AFRICAFREE-TV FOOTPRINT5MTG AFRICAOVERVIEW OF CURRENT OPERATIONSSource: Internal MTG estimatesPAY–TV PRODUCTION
  6. 6. 6VIASAT1 GHANAONE OF THE FASTEST GROWING DEPLOYMENTS IN MTG HISTORYSource: Internal MTG estimatesSales = 60% CAGRClear No.2 channel in the Ghanaian market with 24% CSOV (15-49)Raising the standards for TV productions through partnership with MAPApproximately 50% local content currently with aim to increase to 70%Significant upside when Ghana goes digital, due to increased penetration., with opportunity to launch additional channels0%5%10%15%20%25%30%050100150200250300350400450Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13SALES INDEX Q1’10 = 100Indexed Sales Market Share
  7. 7. 7SUB-SAHARAN AFRICA…AND ADVERTISING MARKETS LOOK EVEN MORE PROMISINGTV PRODUCTION MAPs core businessFORMAT DEVELOPMENT 6 new formats created in last 6 months. 5 currently in productionFACILITATION Assist international format owners with execution in SSACALL TV Low cost productions. Multi-country approach likely to yield significant revenueMOBILE TV Target niche markets, e.g. finance, agriculture and jobsTV PRODUCTION ANDFORMAT DEVELOPMENTPRODUCTIONFACILITATIONCALL TV MOBILE CONTENT
  8. 8. Tanzanians watch 163 minutes of TV per day (similar number to Europe)Big 4 constellation similar to Ghana, with ITV being market leaderNews rated most popular program category by far+80% of high income earners consume TV on weekly basisStrong local language affiliation - Swahili8TANZANIA – LAUNCH Q4-2013AMONG TOP 10 GROWTH ECONOMIES 2011-2015 IN THE WORLDTANZANIA KEY FACTS LAUNCH APPROACHDEMOGRAPHICSCapital: Dodoma Economic center: DarGDP/capita PPP: US$ 1,400GDP growth 2012: 7%TV ATT ad market size in 2012 = SEK 120mTV DTT ad market CAGR 2013-2018 = 20%TV DTT ad market size in 2018 = SEK 200mPopulation: 48m0-14yrs: 45%Urban population: 26%Male / female: 51% / 49%30% Christian, 35% MuslimDTT FTA channelMain cities migrated to DTT during H12013 50% penetrationGeneral entertainment channel targetingurban A15-49 – focus on newsFour main players in the market
  9. 9. 9AFRICAN ONLINE MARKETEXPLOSIVE GROWTH DRIVEN BY MOBILE BROADBANDSource: PWC - South African Entertainment and Media Outlook 2012-2016, AT Kearney - GSMA Mobile Observatory 2012An estimated 250m people will have access to broadband in SSA by 2016The roll-out of 3G (and soon 4G/LTE) paired with affordable smartphones and laptops has already provided a viablealternative to fixed broadband, in the form of internet enabled handsets and wireless modems / donglesKenyan data revenues have increased at an impressive 67% CAGR over the last four years , and now represent 26%of total mobile market revenueBROADBAND HHS IN AFRICA (MN)23,4% CAGR 2007-2016MOBILE BROADBAND CONNECTIONS118% CAGR 2006-2015051015202007 2008 2009 2010 2011 2012 2013 2014 2015 2016Fixed Broadband HHs Dial-Up HHs
  10. 10. 10THANK YOU

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