4th quarter and FY14 results
31st March 2014
4 th quarter and FY14 results 31 st March 2014 Disclaimer This - - PowerPoint PPT Presentation
4 th quarter and FY14 results 31 st March 2014 Disclaimer This document contains certain forward-looking statements with respect to Astro Malaysia Holdings Berhads (Astro) financial condition, results of operations and business, and
31st March 2014
1 | This document contains certain forward-looking statements with respect to Astro Malaysia Holdings Berhad’s (“Astro”) financial condition, results of operations and business, and management’s strategy, plans and objectives for Astro. These statements include, without limitation, those that express forecasts, expectations and projections such as forecasts, expectations and projections in relation to new products and services, revenue, profit, cash flow, operational metrics etc. These statements (and all other forward-looking statements contained in this document) are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond Astro’s control, are difficult to predict and could cause actual results to differ materially from those expressed or implied or forecast in the forward-looking statements. These factors include, but are not limited to, the fact that Astro operates in a competitive environment that is subject to rapid change, the effects of laws and government regulation upon Astro’s activities, its reliance on technology which is subject to risk of failure, change and development, the fact that Astro is reliant on encryption and other technologies to restrict unauthorised access to its services, failure of key suppliers, risks inherent in the implementation of large-scale capital expenditure projects, and the fact that Astro relies on intellectual property and proprietary rights which may not be adequately protected under current laws or which may be subject to unauthorised use. All forward-looking statements in this presentation are based on information known to Astro on the date hereof. Astro undertakes no
This presentation has been prepared by Astro. The information in this presentation, including forward-looking statements, has not been independently verified. Without limiting any of the foregoing in this disclaimer, no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of such information. Astro and its subsidiaries, affiliates, representatives and advisers shall have no liability whatsoever (whether in negligence or otherwise) for any loss, damage, costs or expenses howsoever arising out of or in connection with this presentation.
4QFY14 results
84% on B.yond STBs, 3 out of 5 on HD Watch, Listen, Read, Play Rollout of new multi-lingual UI STBs Transponder capacity Operational efficiencies
2 |
RM4.27bn → RM4.79bn
RM791mn | 177% of PAT
RM504mn → RM582mn
4QFY14 results
RM1.39bn → RM1.62bn
RM420mn → RM448mn
3 |
Highlights FY13 FY14 Growth TV households (000s)(1) 6,747 6,885 2% TV household penetration(2) 52% 56% 4pp TV household penetration (000s) 3,485 3,884 11% Pay TV households (000s) 3,276 3,442 5% NJOI households (000s) 209 442 111% Pay TV gross adds (000s) 456 499 9% MAT churn (3) 8% 10% 2pp Net adds (000s) 418 400 (4)% Pay TV households (000s) 209 167 (20%) NJOI households (000s) 209 233 11% B.yond STB swapout (000s) 770 802 4% ARPU (RM) (3) 93.2 96.0 3% Astro TV viewership share 43% 47% 4pp Radio listenership (000s) 12,344 12,193 (1%) Adex (RM mn) 504 582 15% Revenue (RM mn) 4,265 4,791 12% EBITDA (RM mn) 1,388 1,616 16% EBITDA margin 33% 34% 1pp FCF (RM mn) 627 791 26%
NB (1) TV household data sourced from Value Partners Management Consulting, the Independent Market Research consultant to the company during the IPO (2) Household penetration includes both residential pay-TV customers and NJOI customers (3) 12-month moving averages
4QFY14 results
4QFY14 results 4 |
3,213 3,276 3,316 3,359 3,402 3,442 132 209 264 314 382 442 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 Pay-TV NJOI 92.3 93.2 94.2 94.9 95.6 96.0 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 8.0% 7.8% 7.9% 8.5% 9.3% 9.9% 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1,773 1,966 2,182 2,472 2,707 2,883 1,440 1,310 1,134 887 695 559 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 With B.yond STBs Legacy Customers with B.yond STBs Penetration 80% 66% 60% 55% 74% Residential customers
(000s) (000s) ARPU (RM) Churn (%) 84%
5 |
1,151 1,264 1,397 1,518 1,611 1,675 3QFY134QFY131QFY142QFY143QFY144QFY14 (000s) 227 299 343 414 468 532 3QFY134QFY131QFY142QFY143QFY144QFY14 (000s) Penetration 60% 64% 64% 65% 61% Multiroom 175 218 245 268 289 312 3QFY134QFY131QFY142QFY143QFY144QFY14 (000s) 650 727 784 823 857 880 35 107 152 196 3QFY134QFY131QFY142QFY143QFY144QFY14 Superpack Valuepack (000s) & VALUEPACK 8 11 13 16 20 26 3QFY134QFY131QFY142QFY143QFY144QFY14 (000s) 252 398 510 629 733 847 3QFY134QFY131QFY142QFY143QFY144QFY14 (000s) downloads
4QFY14 results
58%
6 | 4QFY14 results
total channels
HD channels
Astro-branded channels
6 |
Since FY13, we… …launched 12 new channels …had 15 shows exceeding 1mn viewership, tripling FY13 record, and… …increased our viewership across all key metrics 7
HD
5
SD 6.8 7.2 11.3 10.4 FY13 FY14
4:01 4:07 3:15 3:08 FY13 FY14
47% (43%) 53% (57%)
Viewership Share
Astro FTA
↑ 6min ↓ 7min
NB: (1) TV viewership data sourced from Nielsen TV audience measurement (target audience: all 6+ TV viewers) (2) Astroawani.com page views & unique visitors data sourced from Google Analytics Nielsen as of 25th Mar 2014
7 | 4QFY14 results 7 |
Malaysia’s highest-grossing local movie of all time with RM17mn GBO and growing
#1 local movie: The Journey Malaysians turned to Astro Awani for MH370 updates
0.4% 5.7% 8.4% 9.5% 5.3% 1 Mar 6 Mar 11 Mar 16 Mar 21 Mar
Channel share grew 10x
2.8 3.2 22.7
0.8 0.9 3.8
Jan-14 Feb-14 Mar-14 Page Views Unique Visitors
Online traffic spiked to over 22mn UVs
Home of Sports
Podcasts on Astro Listen Sports related mobile games 10 channels to broadcast 64 LIVE WC matches Full-on WC curated experience
8 | 4QFY14 results
3 4 4 5 5 6 9 9 12 15 3 4 5 5 6 6 8 8 10 14 2 2 2 4 6 6 7 8 9 16
Wave 2 Wave 3 Wave 4
Astro’s Brand Health Tracker (2011-2013) Top mention amongst Malaysians Astro continues to remain the most salient of all
9 | 4QFY14 results
10 | 4QFY14 results
Game-changer – 6 titles now fully digital and interactive, of which 5 made available for free to Astro customers Potential market reach and readership in the millions Astro Digital Publications now the largest distributed digital platform in Malaysia
11 | 4QFY14 results
JV committed to delivering a world-class shopping experience to all Malaysians New revenue stream Leverage on Astro’s call centre, channels platform and video production capabilities Build customer satisfaction and loyalty with special offers and shopping convenience Direct reach to customers with high purchasing power
12 | 4QFY14 results
Lifelong Learning Community Development Sports and Wellness Environment Astro employee volunteers have contributed over 79,000 hours through 800 activities under Astro’s 4 CSR pillars
Astro Hostel
Sabah and Sarawak
SK Magandai emerged as the best school in the district
Astro Kasih EkoVillage
skills needed to effect change and create active and sustainable communities
NJOI
NJOI decoders to low income households across the country
Astro Kem BOLA
Cardiff City
in football selection camps for the opportunity to train with Cardiff City Football Club
Kem Badminton Astro
participated in tryout sessions
Coaches at the Japan National Training Centre, participants were housed at Japan Olympic Village
Beautiful Malaysia Longest Underwater Clean Up
Records title for the ‘Longest Underwater Clean-up’ for more than 168-consecutive hours surrounding Tunku Abdul Rahman Park, Kota Kinabalu, Sabah and collected over 3 tonnes of marine debris
ISO14001 Environment Management Systems
standard to reduce our impact on the environment
Kampus Astro Bersama Komuniti Sekolah
schools and teacher activity centres, benefiting 5.3mn students and 400,000 teachers
learning TV programmes
Astro Kasih Bersama Wad Pediatrik
to learn interactively during hospitalisation
Astro Scholarship
disbursed to 56 scholars
13 |
919 960 972 991 996 1,032 68 81 64 87 88 86 55 59 49 66 64 68 36 32 41 44 69 74 1,078 1,132 1,126 1,188 1,217 1,260 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 Other Radio TV adex TV subscription (RM mn)
92% 15% 16% 9% 12%
Total revenue YoY growth
(2)
4QFY14 results
NB (1) Other revenue includes licensing income, publications adex, programme sales, NJOI revenue and theatrical revenue (2) YoY refers to YTD 4QFY14 vs. YTD 4QFY13 (3) Publications adex is aggregated with TV adex for financial reporting purpose
68 81 64 87 88 86 55 59 49 66 64 68 3 3 2 2 3 3 126 143 115 155 155 157 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 TV Radio Others
14 |
Adex revenue 53% 54% FY13 FY14 Share of Radex 28% 31% FY13 FY14 Share of TV adex 12.3 12.2 FY13 FY14 Radio listeners (mn) 43% 47% FY13 FY14 Astro TV viewership share (RM mn)
4QFY14 results
YoY growth
(2) NB (1) Listenership and viewership shares, as well as share of Radex are sourced from Nielsen. Share of TV adex is based on GroupM’s estimates (2) YoY refers to YTD 4QFY14 vs. YTD 4QFY13 (3) Others comprises largely of Publications adex, which is aggregated with TV adex for financial reporting purpose
1% 14% 16% 15%
(3)
313 359 335 360 375 397 355 353 360 387 398 410 115 165 128 137 138 147 125 96 118 120 109 125 908 973 941 1,004 1,020 1,079 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14
Content costs Operating expenses Marketing & distribution costs Administrative expenses
15 |
Content cost as % of TV revenue
(RM mn)
32% 34% 31% 33% Increase in operating expenses, particularly STB/ODU depreciation as well as selling, installation, distribution and logistics costs
Total operating expenditure
32% Continuous investment in content offerings to provide an enriching experience for our customers whilst managing content costs within 32 – 35% of TV revenue
NB (1) Operating expenses include STB installation and smartcard costs, depreciation and amortisation, as well as maintenance costs (2) Content costs and operating expenses are jointly disclosed as cost of sales in our financial statements
4QFY14 results
33%
16 |
109 96 85 129 64 128 56 56 314 409 FY13 FY14 7.4% 8.5% as % of revenue (RM mn) 619 703 FY13 FY14 15% 15% as % of revenue (RM mn) Capitalised capex peaks in FY14 as we completed the Astro B.yond swapout exercise STBs/ODUs are owned by Astro, and are capitalised STBs/ODUs are conservatively amortised over 3 years; note that actual useful life is typically greater than 5 years Discretionary 36 month bullet payment vendor financing is available for Astro for STB/ODU purchases RM1,361 mn of vendor financing recorded in payables, of which RM112 mn is current and RM1,249 mn is non-current Key capex investments in FY14 include: Broadcast equipment related to M3-B Hardware for Astro Select on Astro B.yond IPTV Call center efficiency upgrade Product improvements CRM enhancements Capital maintenance Revenue growth Operational efficiencies Expansion Cash capex Capitalised capex
4QFY14 results
17 |
FY12 FY13
…enabling significant flexibility on capital management and adoption of progressive dividend policy
1,165 1,451 538 660 627 791 Cash from
Cash from investing Free cash flow Cash from
Cash from investing Free cash flow
(2)
149% 177% as % of PAT (RM mn)
FY13 FY14
Free cash flow
4QFY14 results
NB (1) Data presented are for the respective full financial years (2) Excludes investments in unit trust cash and money market funds (2)
enabling the adoption of a progressive dividend policy
paid over first three financial quarters
share for 4QFY14, and a final dividend of 1.0 sen, subject to shareholders’ approval at the AGM in June 2014
18 | 4QFY14 results
20 |
(RM mn) FY13 FY14 EBITDA 1,388 1,616 Margin % 32.5% 33.7% Depreciation and amortisation (603) (838) EBIT 785 778 Finance income 62 55 Finance cost (278) (268) Share of post tax results from investments 6 4 PBT 575 569 Tax expense (155) (121) Tax rate % 27% 21% PAT 420 448 Margin % 9.8% 9.4% Normalised PAT 435 471 Margin % 10.2% 9.8% Increase in D&A due to depreciation related to increased cumulative STBs/ODUs capitalised (FY14: RM504mn, FY13: RM306mn)
4QFY14 results NB Depreciation and amortisation excludes the amortisation of film library and programme rights (RM327mn in FY13 and
RM352mn in FY14) which is expensed as part of content costs (cost of sales)
Reduction in tax expense due to reversal of
Normalised for net unrealised forex losses
21 |
(RM mn) FY13 FY14 Non-current assets 4,130 4,437 Property, plant and equipment 1,916 2,157 Other non-current assets 2,214 2,280 Current assets 2,388 2,666 Receivables and prepayments 751 992 Cash and investments in unit trusts 1,608 1,634 Other current assets 29 40 6,518 7,103 (RM mn) FY13 FY14 Non-current liabilities 4,434 4,740 Payables 706 1,249 Borrowings 3,564 3,362 Other non-current liabilities 164 129 Current liabilities 1,568 1,746 Payables 1,389 1,426 Borrowings 139 302 Other current liabilities 40 18 Shareholders’ equity 516 617 6,518 7,103
Net debt / LTM EBITDA: 1.26x
NB Data presented are as at 31 January 2014
4QFY14 results
661 1,968 1,070 FY14 Finance lease RM term loan USD term loan
22 |
USD term loan RM term loan
The first principal repayment amounting to USD8.25mn (RM24.9mn) was paid
USD/RM3.0189 and an all-in interest rate of 4.19% p.a.
maturity date of 8 June 2021
USD8.25mn (RM24.9mn)
The first principal repayment amounting to RM50mn was paid on 19 November 2013
5.4435% while balance unhedged of RM487.5mn stood at 4.5577% (variable floating rate based on cost of funds)
maturity date of 19 May 2021
2014
Finance lease (primarily satellite transponders)
MEASAT-3A. Payment arrangement for the remaining contractual years have been redenominated into Ringgit at USD/RM 3.0445 w.e.f. 21 May 2013
3,664
(RM mn)
Total borrowings Details of borrowings
Total borrowings includes accrued interest (RM20mn) and is net of debt issuance costs (RM35mn) 4QFY14 results