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Tag: HSBC

  • HSBC raises Hathway’s target price to Rs 432

    HSBC raises Hathway’s target price to Rs 432

    MUMBAI: HSBC Securities and Capital Markets’ latest report on multi system operator (MSO) Hathway Cable & Datacom has improved its rating from ‘normal’ to ‘overweight’.

     

    While it continues to value Hathway using a DCF based approach, it has raised the target price from Rs 276 to Rs 432. This is on the assumption of 12.5 per cent WACC, cost of equity of 13.5 per cent and cost of debt of 11 per cent.

     

    One of the main reasons for this is the expectation of increase in Average Revenue Per User (ARPU). HSBC expects gross billing to increase in phase I markets by around 15 per cent and phase II by around 10 per cent over the next two quarters. Gross ARPU is estimated to grow at 16 per cent CAGR from its earlier 8 per cent.

     

    Increase in ARPU would mean a near 10 to 20 per cent rise in cost, despite the incentives that are being offered by Star’s new RIO deals. The report also says that moving to prepaid would be necessary, even if it is restricted to Star  channels for now as in the long run it would allow MSOs to scale up to full prepaid gradually over the next 18-24 months.

     

    “LMOs will need to move to a prepay backend. Both these factors are positive for the sector and in our view build a long-term case for ARPU improvement, fewer bad debts, reducing friction between MSO and LMO relations, improving the industry structure and allowing the industry to benefit from sector consolidation,” it states.

     

    The report also highlights that if Star is successful in reaping benefits out of its new RIO policy, other big networks may follow suit, though not in the immediate 12 months.

     

    This apart, HSBC also sees broadband ARPUs increasing with a more robust DOCSIS 3.0 platform but with a slight concern on the slow pace of subscriber net addition. The delay in digitisation is positive for cable TV industry to consolidate market share in the first two phases. Side by side, issues such as revenue share and prepaid billing can be sorted and easily applied in phases III and IV.

     

    HSBC has raised its medium- term EBITDA estimates by 11 per cent (FY16e-21e CAGR of 13.5 per cent), cable TV ARPU assumptions by 12 per cent (FY16e-21e CAGR of 11 per cent) and broadband ARPU by 8 per cent for the same period.

     

  • 900 MHz spectrum expected to sell for four times the reserve price: HSBC Research

    900 MHz spectrum expected to sell for four times the reserve price: HSBC Research

    NEW DELHI: Government proceeds are expected to be $ 9 billion from the upcoming spectrum auctions, 20 per cent higher than the government’s own estimates, according to a study by HSBC Telecom and Media Global Research.

     

    The research also says that it is possible that in a few markets the cost for 5 MHz of 900 band may exceed the 3G prices as well.  

     

    The estimates are 1.4 times higher than the reserve price recommended by the Telecom Regulatory Authority of India (TRAI) for 900 MHz spectrum band. For 1,800 MHz band, the estimates are 1.2 times of the reserve price suggested by TRAI, the report adds.

                                          

    Demand for data spectrum is likely to be a key driver in the upcoming spectrum auctions, if one goes by earlier auctions. At present, the two top players who are better placed to add more spectrums – Idea and RCOM – are likely to be more defensive, according to the study.

    It further noted that there is uncertainty for both investors and operators whenever there is talk of spectrum auction.

     

    The spectrum auction earlier this year saw an unexpected contest for 1,800 MHz spectrum as the entry of pure 4G players forced incumbent operators to add 4G spectrum selectively, stated the research paper.

     

    Moreover, it added that the most interesting trend has been robust data revenue growth (data revenue growth in FY14 was 90 per cent year on year for the top three players).

     

    “While this is positive, it raises the need for additional capacity spectrum (incumbent telcos are already talking about congestion particularly in metro markets with 20 per cent to 30 per cent of their BTS). Operators have so far been highlighting the need to add data footprint but in the markets where they have 5MHz of spectrum, and it will be important for them to get to 10MHz sooner than later (over the next couple of years) to accommodate data growth,” the research revealed.

     

    The study has found that ‘doubling of spectrum will more than double the throughput for telcos and in turn allow them to benefit from lower per unit costs as well with doubling of spectrum.’ 

    The need for capacity spectrum, the study said, is likely to drive prices up for spectrum in the upcoming auctions.  

     

    While both Bharti and Idea face auctions in some of their key markets, the latter has more exposure in the upcoming auctions versus Bharti. The study says this implies that telco Idea is likely to focus more in retaining spectrum in existing markets.

     

    On the other hand, the top two players Bharti and Vodafone could look at adding more spectrum in the 900 band, according to the report. HSBC was positive on Bharti with a target price (TP) of Rs 481 and Neutral on Idea Cellular with a TP of Rs 172. The key downside risk for Bharti will be losing spectrum in the 900 MHz band.  The key upside risk for Idea will be the release of additional data spectrum and the key downside risk will be losing spectrum in the 900 band. The study is somewhat negative on RCOM with TP of Rs 100 and the key upside risk for them will be ability to benefit from spectrum trading. 

  • Quikr gets a new CMO in Vineet Sehgal

    Quikr gets a new CMO in Vineet Sehgal

    MUMBAI: After receiving Rs 365 crore funding earlier this month, the online classified company Quikr announced the appointment of Vineet Sehgal as the company’s chief marketing officer. He will be responsible for marketing strategy and plan across all areas including brand building, performance marketing, partnership and alliances at the portal.

     

    Quikr founder and CEO Pranay Chulet said, “We are delighted to welcome Vineet to Quikr. Quikr is made in India and for India, and Vineet has built his career scaling consumer businesses in the country so there was natural chemistry here.”

     

    “Vineet also knows the Indian consumer and he knows the Indian consumer on mobile. His arrival was particularly well timed with our own plans, as the fun is just beginning,” he added.

     

    Beginning his career in consumer marketing with Nestle, Sehgal headed Nokia’s programs and planning portfolio before joining Quikr. He also founded the Nokia Money start up team and drove its growth from conception to market roll out and held large scale launches of some of the most used mobile devices in India.

     

    With more than 18 years in marketing and business strategy, Sehgal has worked across diverse industries such as telecommunication, FMCG, banking and management consulting. He has been associated with brands including Nokia, Nestle, Accenture, Cadburys and HSBC.

     

    Sehgal said, “It is a pleasure to have the opportunity to join Quikr which is writing such an interesting chapter of the Indian internet story.  Quikr’s business is growing exponentially and its super exciting for me to be a part of this growth curve. I look forward to further building the company as the Indian internet becomes more and more synonymous with mobile internet.”

     

    Quikr records 30 million users a month across 940 cities in India and so far has received funding of around Rs 1,300 crore since its inception in 2008.

  • HSBC appoints L&K Saatchi & Saatchi as its communication partner

    HSBC appoints L&K Saatchi & Saatchi as its communication partner

    MUMBAI: HSBC has awarded its communication mandate to L&K Saatchi & Saatchi for the re-launch of its premier offering in India. HSBC Premier is the group’s premium financial services product, offering exclusive banking services to high net worth individuals.

     

    The agency will be taking forward the globally integrated campaign for the re-launch of Premier. The agency’s Mumbai office will handle the account.

     

    The new positioning for HSBC premier is ‘Personal support, for your Personal Economy’. 

     

    L&K Saatchi & Saatchi CEO and managing partner Anil Nair said, “We are extremely pleased to work with HSBC in India. HSBC has given us the mandate on the ‘premier’ business which is very challenging and exciting. We look forward to creating interesting work in collaboration with the HSBC team in India.”

     

    The campaign took an inside-out approach for the re-launch, starting with HSBC’s own relationship managers to better understand the real challenges that their clients face. 

     

    Extensive research, consultation and interviews with both relationship managers and clients revealed the insight that high net worth individuals across the world have one major characteristic in common: they each have their own individual, highly personal economy.

     

    Interconnected to all aspects of their lives – whether home, family, work, experiences or passions – their personal economies are always with them, always changing and needing care and attention in order to grow. 

  • LCOs demand access to SMS from MSOs

    LCOs demand access to SMS from MSOs

    KOLKATA: The process of shifting from analogue to digital feed is not without its share of problems; a key issue being the resultant tug-of-war between local cable operators (LCOs) and multi system operators (MSOs) over access to the subscriber management system (SMS).

    The Digital Addressable Cable TV Systems (DAS) requires MSOs to establish a subscriber management system (SMS), where details of all subscribers, along with their choice of services including channels and bouquets, are maintained.

    While cable and entertainment analysts feel, “This brings in addressability and consequently, complete transparency in the whole system,” LCOs have a different take on the matter. They are of the opinion that once MSOs start billing consumers directly, they may end up losing control over their hard-won subscribers. Hence, they’re now asking MSOs to allow them access to the SMS to avoid such an eventuality.

    Says Rajiv Sharma, lead analyst (telecom and media), HSBC Securities: “LCOs are worried about losing control over their subscribers if MSOs bill directly. They are of the view that MSOs should allow LCOs access to subscriber management systems, which are similar to what is being done for airline ticketing.”

    A city-based cable op told indiantelevision.com, on condition of anonymity, that he had worked very hard for the last 20 years and it would be very unprofessional if his business and database were to go out of his hand and to the MSO whom he would then have to depend on totally.

    Meanwhile, an MSO questioned as to how he could allow LCOs access to the SMS which his company had spent a few crores on. Typically, it’s the MSOs that invest in infrastructure including network, encryption, ERP, call centers and SMS.

    Director Manthan Broadband Services pointed out the benefits of SMS as enabling subscribers exercise their choice of services and budget their bills accordingly. “It also helps us in managing their accounting and billing of the services rendered effectively in the long term,” said he.

    Cable analyst Namit Dave suggested that MSOs and LCOs should work hand-in-hand for mutual benefit. While Sharma pointed out that the battle between MSOs and LCOs was sending out wrong signals to the investor community. “Gross billing remains a deterrent for MSOs and we anticipate some delay as we don’t expect clarity on the entertainment tax issue anytime soon,” he said. News is Hathway has suggested it expects to move to gross billing not before phase I i.e. the fourth quarter of the current fiscal.

  • Genesis Burson-Marsteller Announces Marketing & Talent Leadership Developments

    Genesis Burson-Marsteller Announces Marketing & Talent Leadership Developments

    GURGOAN: Genesis Burson-Marsteller, leader in integrated communications, specializing in public relations, public affairs, corporate responsibility, crisis communications and digital marketing, has announced the appointment of Deepshikha Dharmaraj, in a new leadership role, as Chief Marketing and Growth Initiatives Officer and Kavita Rao, joins the firm as Chief Talent Engagement Officer.

     

    A seasoned communications professional, Deepshikha Dharmaraj, who has been with the firm for 19 years, will focus on Genesis B-M’s Marketing and Growth Initiatives, which include new business development, partnerships, external communication and thought leadership in the industry. She will also continue to oversee the Genesis B-M Learning School, which is a one of its kind in the PR industry.

     

    An alumnus, Kavita Rao returns to Genesis Burson-Marsteller to lead the Talent function. Kavita has over 19 years of experience and until recently, she was the Global Head of Communications at HSBC Technology & Services where she spent close to nine years leading the development and deployment of the Communication strategy across multiple geographies. Kavita played a key role in the integration of the bank focusing on Change and Transformation Communication to support the priorities and achievement of HSBC’s changing business imperatives As Chief Talent Engagement Officer, Kavita will be responsible for developing and driving the People Strategy to attract, develop and maximize potential of the talent across the firm She will also provide strategic counsel to clients on internal communication campaigns, leveraging the experience she has gained in this area over the last decade. Speaking on her return to the firm, Kavita said, “Genesis Burson-Marsteller is a firm that puts its people at the heart of its strategy which is the key reason our people like to stay and grow with us, as well as have Alumni return to us as I have done. It’s wonderful to be back and I’m looking forward to contributing to the future growth of the organization.”

     

    Speaking on these appointments, Prema Sagar, Principal and Founder, Genesis Burson-Marsteller said, “At Genesis Burson-Marsteller, we are committed to investing in exceptional quality talent and by appointing Deepshikha and Kavita in their new roles, we are strengthening our Marketing and Talent functions. This will further accelerate our continuing growth story. Kavita’s vast experience will bolster our talent-building efforts, while with her experience and understanding of the communications industry in India, I believe Deepshikha is the right person to deliver the marketing and growth strategy for the firm.”

     

    Nikhil Dey, President, Public Relations said “Sheena Sharma, Chief Client Studio and Corporate Responsibility Officer who has spent over 19 years in the firm will focus and lead all executive communication trainings for our clients and the firm while she continues to be Mentor South. Kriti Makhija, Chief Financial and Compliance Officer, who has spent over 10 years at Genesis Burson-Marsteller ensures the financial health, compliance, governance and IT infrastructure of our business. We continue to grow and augment the backbone of the organization to reinforce the clients business.”

  • MSM appoints Neville Bastawalla as SONY PIX marketing head

    MSM appoints Neville Bastawalla as SONY PIX marketing head

    MUMBAI: Multi Screen Media (MSM) today announced the appointment of Neville Bastawalla as its new marketing head for its premium Hollywood movie channel SONY PIX.

    Neville Bastawalla with his experience and understanding of the business will help to consolidate Pix’s position in the genre

     

    A marketing professional with over 14 years of multi-brand experience, Bastawalla’s previous stint was with Star India where he joined in January 2011 as marketing head for its English channels and was most recently head – marketing for STAR’s Hindi movies channels since February 2013.

     

    Prior to joining Star India, Bastawalla was head marketing at Mid-Day Infomedia where he spent about four years. He joined Mid-Day in 2007 after a brief stint with Nickelodeon as senior marketing manager. A management graduate in marketing, Bastawalla also has worked with HSBC, Walt Disney Company, Contract Advertising and Mudra Communications.

     

    Announcing Bastawalla’s appointment SONY PIX EVP & business head Saurabh Yagnik said, “We are delighted to have Neville join the team and we are certain that his experience and understanding of the business and our audience will help us consolidate our position in the genre. We look forward to a long and fruitful working association with him.”

     

    “I am delighted to begin my association with Sony PIX.  The channel has always uniquely positioned itself in the English movie genre, with a strong content library and innovative campaigns for its premieres and other properties. The channel showcases the best of Hollywood movies. I look forward to taking up this role and delivering on the business objectives for the channel,” said Bastawalla.

  • Contract Advertising promotes Rohit Srivastava to chief strategy officer

    Contract Advertising promotes Rohit Srivastava to chief strategy officer

    Mumbai: Rohit Srivastava has been named chief strategy officer at Contract Advertising. He will develop and integrate the strategic planning capabilities.

    Srivastava has been with Contract Advertising for 23 years and is being recognised for his role and responsibility, especially his strategic skills and capabilities.

    He will help deliver on Contract’s creative vision and partner with Contract India COO Rana Barua to create the best value proposition for its clients.

    “Rohit has been one of the biggest strengths Contract has had over two decades. As he takes over the role of the chief strategy officer across all verticals of Contract, he will partner me in fortifying client relationships and ensure the future growth of Contract”, Barua said.

    Srivastava will continue to lead Core Consulting, the marketing and strategic consulting division of Contract. As the head of the strategic planning function Srivastava has worked closely on a wide portfolio of brands including Asian Paints, Crompton Greaves, Dabur, Dominos, Godrej, HSBC, Kraft-Cadbury (Mondelez), NIIT, Shoppers Stop, Edelweiss Tokio Life Insurance, Marico, Aditya Birla Group, Prudential, Franklin Templeton, Honda, Emami, Britannia, Louis Philippe, Hypercity and ICICI Bank.

  • Ajay Verma joins Draftfcb Ulka as chief growth officer

    MUMBAI: Ajay Verma has returned to Draftfcb Ulka as the chief growth officer. He will head the business development efforts of Draftfcb Ulka and will work closely with the business heads of the various divisions.

    Verma, who has 16 years of experience, started his career in the erstwhile Ulka Advertising way back in 1993 as a young management trainee. He was part of the agency‘s 23 year long running internship training program, Star One.

    Apart from Ulka Advertising (Draft FCB Ulka), Verma has also worked with Rediffusion and Percept H on brands including Colgate, HSBC, Cadbury, Tata Motors, Rediff.com, Franklin Templeton, Tata Sky, Amul, Godrej and HPCL.

    He has also led the new business efforts at two of his previous positions. Verma also has an entrepreneurial streak in him, having worked as the founding CEO of eBus, India‘s first digital television advertising delivery system.

    Draftfcb Ulka executive director and CEO MG Parameswaran said, “We are delighted to have Ajay Verma back. He was one of our brightest Star One recruits. He brings with him a great amount of energy and excitement that is vitally needed to drive the growth ambitions of the Group. Ajay will work across various verticals helping us leverage our great strengths as well as open new opportunities for the various offerings of the agency. We have been often called a very quiet, shy agency. The addition of Ajay to the senior management team is a step in correcting this impression.”

    Verma said, “I loved the thrill of working in a fast evolving Internet Technology industry, but I was missing the fun and excitement of working in a large agency network. It‘s a special feeling to be entrusted this critical role at Draftfcb Ulka – a company where I not only started my career, but also a place for which I have always had a great amount of respect and regard.”

    Draftfcb Ulka Advertising is a member of the Draftfcb Ulka Group, India‘s third largest marketing communication group with over 200 clients, 850 professionals working across eight offices in seven cities, covering a diverse spectrum of services including advertising, media, digital, direct, analytics, brand consulting, and activation/brand experience.

  • JWT strengthens digital and creative team

    MUMBAI: Prasanna Kulkarni and Nitin Pradhan have joined JWT as executive creative directors. This is a part of the agency‘s plan to invest in talent and build up its digital and creative capabilities.

    Kulkarni has over 14 years of experience in advertising, brand strategy, and digital media. He comes in from OgilvyOne Worldwide where he led a creative team at for over five years. He has worked for clients like Orange, IBM, Diageo, Cadbury, Lenovo, HSBC, Hindustan Unilever Ltd and British Airways.

    At JWT, Kulkarni will partner with Sushobhan Chowdhury (head of digital strategy) and Rahul Kaul (technology/UX head) to lead and mentor digital-specific core teams in New Delhi and Mumbai.

    JWT India digital head Max Hegerman said, “We are very excited about the addition of someone of Prasanna‘s calibre. As a digital native, he brings in an abundance of hands-on digital experience – and a passion for the space. Prasanna will have an immediate impact on our digital creative capabilities. I am excited to have Prasanna as a part of the core leadership team at JWT Digital.”
    Pradhan moves in from McCann Erickson. His experience in the field spans over 12 years during which he has worked with some of the leading brands across agencies like KBC, Tata Sky, Nescafe and Close-up.

    Pradhan will work closely with JWT chief creative officer Bobby Pawa on special projects, besides handling some of the key brands at JWT Delhi.

    JWT Delhi managing partner Sanjeev Bhargava said, “I am delighted to have Nitin Pradhan joining the JWT family. Over the long discussions I have had with Nitin, I have found him to belong to the brand of creative people who do not sacrifice diligence, perseverance and detailing on the altar of creative vehemence. The correct mix of all these wonderful traits is what Nitin brings to the table and I am looking forward to working closely with him.”