Scaling our Digital Engines for Growth - Singtel Investor Day 2019 Samba Natarajan CEO, Group Digital Life
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Singtel Investor Day 2019 Scaling our Digital Engines for Growth Samba Natarajan CEO, Group Digital Life Jun 11, 2019
What will it take for Group Digital Life to achieve
profitability, and when will this happen?
Key Questions What is the plan to crystallize the value of the
Group’s digital businesses?
on your mind
What is Singtel’s appetite for future investments
in the digital businesses?
What is the plan for Amobee and HOOQ? Is
Singtel investing more, and how does that
impact profitability?
2
Successful companies are breaking out of traditional
industries to build ecosystems
Expanded from software to cloud
services, hardware, gaming, and business
social networks
Moving from financial services into B2C
commerce, housing, gaming, and others
Growing out of publishing into education,
advertising and others
2013
Value of top 10
Telcos was
Participating in 70%
of Top 10 Internet
the digital Companies
economy is a
non-negotiable
2018
strategy
Value of top 10
Telcos was only
20%
of Top 10 Internet
Companies
4
Digital Health Financial Services
Singtel Group
Particularly Data Assets
when we have a
differentiating Gaming Advertising
Network
data Web
Intent Location
proposition CRM
Demographics
Entertainment Communication
5
Singtel’s Digital Transformation Strategy
Partnerships
to build the
digital
ecosystem
Digitizing and enhance Building new
the core the core standalone
operating digital
model businesses
where we
have a right to
play
6
We invest in digital business that are
In fast growing markets … where our assets can add significant value
>690M Subscribers Customer touch points
Carrier billing capabilities Rich telco dataset
… and that will eventually move
the needle for the Singtel Group
7
GDL Financials
Revenue (S$ millions) EBITDA (S$ millions)
1,289
1,162
626
511 -51
369 -92
-104
-122
184 -137
111
-170
-180
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY13 FY14 FY15 FY16 FY17 FY18 FY19
8
Our Vision
One of the independent top 3 global digital marketing
players, leading at the convergence of TV and digital
The leading over the top video platform in SEA and India,
creating a million stories for a billion people
Software capability that realizes value of our Data, internally
for telcos and externally for monetising mobility intelligence
New Growth Growth equity investments in emerging areas, such as digital
health and fintech, adding strategic value with our core assets
Engines
9
10
Amobee at a Glance
The Business
> 2,000
Advertisers Omni-channel platform to automate planning
and buying across TV, digital and social
> 150 Proprietary audience data for more precise
targeting, available even for TV
Integrated Partners
Powerful, in-depth analytics capabilities to
> 900 turn insights into real-world impact
Employees globally
Our Clients
> $1B
Gross Revenue
EBITDA positive for
2 consecutive years
Invested
> US$1B
since 2012Amobee Financials
Revenue (S$ millions) EBITDA (S$ millions)
1,250 31
1,139
1
-16
602
501 -32
-34
348 -45
128
57
-78
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Guidance on FY20:
Amobee is expecting to grow its operating revenue by high single digit and improve its EBITDADerive majority of revenues
Amobee
1 Completing the shift
to programmatic
from a scalable programmatic
business
has
Leading the Drive double-digit topline
ambitious
plans for 2 convergence of
Digital and TV
CAGR over the next three
years
the next
3 years Leverage our preferential
Improving margins
3 through data
monetization
access to data to provide the
best marketing outcomes for
our clients1 Rebalancing towards programmatic
US Digital Ad Spend (US$ billions)
Programmatic Digital Display Ad Spend CAGR
Non-Programmatic Digital Display Ad Spend
172 19%
151
129 26%
81
109 70
88 59
72 49
36
25
81 91 14%
59 70
46 53
2016 2017 2018 2019 2020 2021
Source: eMarketer
14The Trade Desk’s (“TTD”) Historical Valuation
TEV in US$ millions
11,000 10,723 40x
Total Enterprise Value (TEV)
10,000
Total Enterprise Value (TEV) / Net revenue 35x
9,000
8,000 30x
7,000 25x
20.9x
6,000
20x
5,000
4,000 15x
3,000 8.2x 10x
2,000
5x
1,000
1,262
0 0x
September June
2016 2018
15Few Scaled Players Left
beyond GFA
2013 2019
74 New Companies
122 Acquired
GFA refers to Google, Facebook, Amazon 162 Leading the convergence of Digital and TV
Premium Content
Brand Relationships
TV and Digital Convergence is
Integrated
workflow
Inevitable
$70B $36B
TAM for Linear TV Programmatic Platforms TAM for Digital
Targeting technology Video, Addressable
Attribution / Analytics TV, OTT 17US Digital Ad Spend1
Others US Converged TV and Digital Ad Spend1
37%
63%
Others
2018: $107b
2020: $170b 46%
US TV Ad Spend2 54%
5%
Others 95%
2020: $238b
2018: $69b
2020: $68b 1 Digital Ad Spend includes Video ad spend (in-banner, in-stream, and in-text across desktop, laptop, mobile and tablets)
2 TV Ad Spend includes broadcast (network, spot, and syndication) and cable TV.
18
SOURCE: eMarketer, LumaAmobee Broadcaster Solutions
Supporting Recurrent,
Differentiated
Broadcasters stable
Inventory
to go Digital fees
193 Leveraging differentiated data and analytics
First Party Unique Making Data
Data Capabilities Easy to Use
Brand
Simplified UI/UX
Intelligence
Telco
DataMine Recommendation
Analytics Engine
Enterprise Preferential
Customer Partnerships
Data
New Data
Products
20Private Market Net Rev Multiple
4.6x
3.3x
And we are
committed
7.9x
to realizing
value
Public Market
20.9x
5.4x
2122
One of 3 independent, at-scale
platforms remaining in SEA
23Driving scale through differentiated distribution and
improved customer engagement
Cumulative
Millions of Total Minutes per
Partner
downloads Active User (SEA)
Integrations *indexed at 100 for 2017
24
115 130
116
90 100
13
6
17
April 2017 April 2018 April 2019 April 2017 April 2018 April 2019 April 2017 April 2018 April 2019
24AVOD/SVOD
Rolled out
freemium layer
across SEA
Completed new
partnership deals and
scaled existing channels
25SEA’s leading India’s leading
Digital Platforms VOD Apps
26Region where
multiple global and
regional players are
seeking partners
in 2020
27has built out products addressing 3 key use cases
Telco Network Out-of-Home Transport Planning &
Capex Optimisation Planning Operations Management
28FY19 in review
8 new investments, 11 follow-on investments, 2 exits New investments Follow-on investments Exits
Enterprise Security (6) Big Data and AI (4) Fintech (2) Smart/Safe Cities (1)
Endpoint threat platform Computer vision
and deep learning
Autonomous mobile robots
Ecommerce (1)
1,098 Startups seen
Purchase intelligence platform
# of startups seen by category
Enterprise authentication End-to-end car marketplace
Data exchange platform Growth
802 73%
Digital assets banking solution
Edtech (1) Engines
(target: 50 – 70%)
Network Security Healthtech (2)
Social learning network
Video analytics platform
Digital Marketing (1) Enablers 112 9%
Security rating platform
(target: 20 – 30%)
Data analytics platform End-to-end healthcare platform Telco data
monetization platform
Advanced app security
Enterprise Solution (1) Next-Gen Network (1) New and
Emerging 184 18%
Services
Employee benefits (target: 10 – 20%)
Digital data rights management Video analytics platform and insurance platform Network acceleration
29New Growth Engines
Digital Health Fintech
An integrated, consumer-centric A mobile-centric
digital health platform financial services platform
30Digital Health ecosystem that
Digital simplifies healthcare access
Health
Employee benefits platform
powered by analytics
31What will it take for Group Digital Life to achieve
profitability, and when will this happen?
Revisiting the What is the plan to crystallize the value of the
Group’s digital businesses?
Key Questions
What is Singtel’s appetite for future investments
in the digital businesses?
What is the plan for Amobee and HOOQ? Is
Singtel investing more, and how does that
impact profitability?
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