4th Quarter & Full Year FY18 Results
28th March 2018
4 th Quarter & Full Year FY18 Results 28 th March 2018 - - PowerPoint PPT Presentation
4 th Quarter & Full Year FY18 Results 28 th March 2018 Disclaimer This document contains certain forward-looking statements with respect to Astro Malaysia Holdings Berhads (Astro) financial condition, results of operations and
28th March 2018
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
1 | 4QFY18 results
to digital assets
individuals
RM5.61bn→ RM5.53bn
177% of PATAMI
RM705mn→ RM722mn
GROW MONETISE LEAD INVEST
RM624mn→ RM771mn
vernacular content
RM1.82bn→ RM1.82bn
2 | 4QFY18 results
Highlights FY17 FY18 Growth TV households (000s)(1) 7,207 7,321 2% TV household penetration(2) 71% 75% 4pp TV customer base (000s) 5,121 5,489 7% ARPU (RM) 100.4 99.9
Astro TV viewership share(3) 77% 77% +0.2pp Radio listenership (mn) (4) 15.6 16.5 6% Average monthly unique visitors (mn)(5) 5.5 6.9 25% Connected STBs(000s) (8) 507 804 59% Revenue (RM mn) 5,613 5,531
EBITDA (RM mn) 1,817 1,820 +0.2% EBITDA margin 32% 33% 1pp PATAMI (RM mn) 624 771 24% FCF (RM mn) 1,317 1,364 4% EPS (RM sen) 12.0 14.8 23%
NB (1) TV household data sourced from the Department of Statistics Malaysia and Media Partners Asia (2) Household penetration comprises residential Pay-TV customers and NJOI customers (3) Viewership share is based on DTAM deployed by Kantar Media. (4) Audience measurement is provided by
estimates (5) Average monthly unique visitors to Astro’s digital assets as sourced from comScore (6) Data presented are for full year FY18 (7) Numbers may not add up due to rounding differences (8) Connected set-top boxes (STBs) are connected to the internet and have access to Astro’s On Demand library of content
3 | 4QFY18 results
5,121 5,489 FY17 FY18
Connected STBs (1) (000s)
507 804 FY17 FY18
Households (000s) ARPU (RM)
100.4 99.9 FY17 FY18
75% 71%
Household Penetration
NB (1) Connected set-top boxes (STBs) are connected to the internet and have access to Astro’s On Demand library of content (2) Monthly averages of unique visitors to Astro’s digital assets as sourced from ComScore for FY18 and FY17
Average Monthly Unique Visitors (2) (mn)
5.5 6.9 FY17 FY18
0.5% +59% 4 | 4QFY18 results +25%
23% 77%
TV Viewership Share
3:55 3:49 2:01 2:06
FY17 FY18
13.9 13.3 8.1 7.2
FY17 FY18
Astro FTA
channels
Astro-branded channels
channels
NB (1) Number of channels as at 31 January 2018 (2) Target Audience: Kantar Media, Dynamic TV Audience Measurement (DTAM). All Astro Pay-TV viewers.
+4.1%
Pay-TV NJOI
5 | 4QFY18 results +0.2pp
1,148 1,168 1,174 1,155 1,121 1,140 1,149 1,107 150 186 188 181 143 208 175 196 64 74 62 61 62 70 73 85
1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 Go Shop Adex Subscription/Others
11% 2% (3%) (RM mn) Total revenue YoY growth
(2)
NB (1) Disclosed as Subscription revenue and Other revenue in our financial statements, includes revenue streams such as TV subscription, licensing income, programme sales, NJOI revenue and theatrical revenue (2) YoY refers to FY18 vs. FY17 (3) Numbers may not add up due to rounding differences
(1%)
(1)
1,424 1,428 1,397 1,326 1,420 1,397
6 | 4QFY18 results
1,363 1,388
78 99 105 95 71 120 96 112
72 87 83 86 72 89 79 84
1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18
TV Radio
FY17 FY18
Advertising income (RM mn) YoY growth
(2)
(1%) 6%
(1)
Total Malaysia gross ADEX YoY growth OVERALL ADEX (8%) RADIO (5%) TV (12%)
(2)(5)
73% 74%
FY17 FY18
Share of Radex Share of TV adex Radio listeners (mn) (3) 77% 77%
FY17 FY18
Astro TV viewership share (4)
NB (1) Advertising income is net of commissions and discounts. Digital adex is included in TV and Radio adex. (2) YoY refers to FY18 vs. FY17 (3) Audience measurement is provided by GfK. Share of radex is based on internal estimates (4) Viewership share is based on DTAM deployed by Kantar Media. Share of TV adex is based on Astro and Group M’s estimates (5) Malaysia gross adex figures are based on Nielsen and Group M’s data (6) Numbers may not add up due to rounding differences
15.6 2% 16.5
186 188 181 143
38% 44%
FY17 FY18
208 175
7 | 4QFY18 results
196 150
409 497 471 434 405 353 447 408 676 687 665 695 624 690 706 778
1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18
Content costs Other expenses
(RM mn) Total operating expenditure 35%
NB (1) Content costs are disclosed as part of cost of sales in our financial statements (2) Other expenses include marketing and distribution costs, administrative expenses, STB installation and smartcard costs, depreciation and amortisation, as well as maintenance costs (3) Numbers may not add up due to rounding differences
34% 39% 37%
Content cost as % of TV revenues
1,136 1,129 1,029 1,043
28%
1,184 1,153
36%
8 | 4QFY18 results
1,186 1,085
33% 33%
NB (1) Data presented are for the financial year ended 31 Jan (2) Numbers may not add up due to rounding differences
4% 4% as % of revenue (RM mn)
163 200
FY17 FY18 3% 4% as % of revenue (RM mn) Key capex investments in FY18 include: ▪ Technology infrastructure ▪ Customer experience ▪ Product and service upgrading Capex STBs ▪ 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 ▪ RM710mn of vendor financing recorded in payables, of which RM321mn is current and RM389mn is non- current
9 | 4QFY18 results
246 237
FY17 FY18
1,888 2,016 572 652 1,317 1,364 Cash from
Cash from investing Free cash flow Cash from
Cash from investing Free cash flow
(2) (3) (3) (2)
211% 177% as % of PATAMI (RM mn) FY17 FY18
Free cash flow
…enabling significant flexibility on capital management and dividend policy
NB (1) Data presented are for the financial year ended 31 Jan (2) Excludes investments, disposals and maturities of unit trust and money market funds (3) Excludes repayments of vendor financing and payments of finance leases, which are categorised as cash from financing for consistency with Bursa disclosure (4) Numbers may not add up due to rounding differences
10 | 4QFY18 results
▪ Leveraging on invested capital, AMH continues to be highly cash generative ▪ The Board of Directors of AMH has declared a quarterly dividend of 3.00 sen per share for 4Q FY18 and a final dividend of 0.50 sen per share, subject to shareholders’ approval at the upcoming AGM in June 2018 ▪ Quarterly dividend entitlement and payment dates: 12 April 2018 and 27 April 2018, respectively
11 | 4QFY18 results
12 | 4QFY18 results
1997 1999 2000 2001 2002 2003 2004 2005 2006 Fiscal year ending 31 January 1998 2007 Innovation & Initiatives 2008 Residential customers (000s)
35 183 297 541 778 984 1,283 1,566 1,798 135 2,016 N.A 84 80 81 81 80 79 N.A 78 81 83 80 44.95 49.95 44.95 49.95 80 54.95 54.95 54.95 49.95 2,272 82 37.95
2009
2,646 2,931 37.95 37.95 82 82
2010
37.95* 85 2,930 3,067
2011
37.95* 89 49.95
Basic Entry Price Pay-TV entry price 2012
3,485 37.95* 93
2013
3,884 39.95* 96
2014
4,429 39.95* 99
2015
1st HD broadcast 1st 3D broadcast Vernacular EPG
VA VALUEPACK PACKS
Entry price Basic Entry Price ARPU^
Aggregation: International channels Localisation: Vernacular content and self-packaged channels Innovation: IP creation, build content brands, VAS & smart bundling
2016
4,818 39.95* 99
2017
5,121 39.95* 100
2018
5,489 39.95* 99
Expansion: Targeting individuals & going ASEAN
NB: * Excluding 6% Government Service Tax / Goods and Services Tax ^ MAT ARPU started from FY2011
Digital Assets 190 channels
in Southeast Asia
across Pay-TV & NJOI
unique viewers across
regional OTT play with 3.1m total installs
experience Malaysia & Singapore
customers
across 4 key languages
11 radio brands OTT (Over-The-Top) Service
13 | 4QFY18 results
TV DIGITAL RADIO COMMERCE
Connected STBs
(+59% YoY)
spent viewing non- linear content Multiscreen (Connected STBs & Astro Go)
Connected STBs average weekly viewing hours 2x linear homes
Multiscreen average weekly viewing hours
❖ 23mn On Demand downloads (+300% YoY ) ❖ 28,000 hours of content refreshed at 30% rate each month
NB (1) YoY refers to FY18 vs. FY17 (2) Connected set-top boxes (STBs) are connected to the internet and have access to Astro’s On Demand library of content
(1) (1)
14 | 4QFY18 results
Maintaining pole position across all 4 key languages
15 | 4QFY18 results
360-degree engagement
Mobile Digital Social media On-ground events Audio Talents Engaging with 16.5m audience weekly
1.1 1.6 FY17 FY18 3.0 4.4 FY17 FY18 179 247 FY17 FY18
NB (1) Cumulative as at 31 January (2) Data shown relates to Astro Go
Average Weekly Viewing (mins)
App Downloads(1) (mn) Registered Users(1) (mn)
+45% +47% +38% 16 | 4QFY18 results
15 boxsets of free VOD
content with day/date Korean shows
NB (1) Cumulative as at end Jan (2) Monthly average for the quarter
Total installs(1) (mn)
0.76 3.13
+312%
122
mins
mins
Q4FY17 Q4FY18
IP, Gantung premiered this quarter and quickly emerged as a top title on Tribe Indonesia Presence in the ASEAN region
Telkomsel, Indonesia’s leading telecoms to drive penetration and scale FY17 FY18
17 | 4QFY18 results
Monthly average time spent(2)
1.3m downloads
& growing http://www.tamago.live
Dec 2017
Launched in partnership with Huomao
Live streaming
focusing on localised ASEAN user generated content
Interactive features
including virtual gifting and real time interactions
Tamago live streamed the Hatsune Miku Expo 2017 to fans globally
2.5m fans globally
concert of the virtual singer in Kuala Lumpur in Dec 2017
18 | 4QFY18 results
956 1,316 FY17 FY18
NB (1) Cumulative as at financial year ended 31 Jan
19 | 4QFY18 results
Malay (Ch. 118 & Ch. 120) & Chinese language (Ch. 303) home shopping channels
programmes in both Malay & Chinese languages
programs on Astro branded channels
platforms including social media e.g. Facebook live
content concept - multiple products from an anchor brand showcased during the 1 hour live shows
261 290 FY17 FY18
Revenue(1) (RM mn)
11%
38%
Registered Customers (1) (‘000)
TV viewership
4.9mn 4.0mn 2.6mn 3.1mn 2.2mn 1.6mn
Key Malay IPs Key Chinese IPs
321k
Prime Talk Evening Edition Classic Golden Melody Miss Astro Chinese International Pageant Hua Hee Megastar Hua Hee Champion
332k 116k 201k
20 | 4QFY18 results
136k 260k
Digital views
29mn 13mn 5mn 3mn 6mn 241mn
On Demand downloads
120k 52k 270k 10k 384k 18k
TV viewership
2.3mn fans (+15% YoY) 393mn digital views (+23% YoY)
Undercover Selebriti 6mn views The House s4 8mn views Gegar LIVE+ 9mn views AF LIVE+ 9mn views MLM 30mn views Lawak Solo 5mn views Reality Drama 3 Gadis Manis 7mn views Matacinta 10mn views Signature Spinoffs
155k fans (+169% YoY) 36mn digital views (+56% YoY)
MACIP 7.5mn views Call Me Handsome 4.1mn views Signature Spinoffs
#1 Chinese Entertainment Portal in Malaysia #1 Malay Entertainment Portal in Malaysia
21 | 4QFY18 results
Nusantara Kids eSports
Premium Nusantara
Transmedia kids and animation content with Asian values Asian horror original series and movies The next wave of sports for the millennials
Horror
Asian horror original series and movies
Nusantara premium series, Dosa, featuring a star- studded cast from Malaysia, Indonesia and Singapore
territories with more than 2 billion YouTube views
Amazon US
Singapore and airlines for in-flight entertainment
local cinemas and has been sold to 9 countries
Stories has been licensed to Indonesia and Cambodia
countries this year (Singapore, Thailand and Myanmar) bringing the total to 8 countries
22 | 4QFY18 results
(RM mn) FY17 FY18 EBITDA 1,817 1,820 Margin % 32% 33% Depreciation and amortisation (721) (680) EBIT 1,095 1,140 Margin % 20% 21% Finance income 35 172 Finance cost (272) (237) Share of post tax results from investments 2 (2) Impairment of investments accounted for using the equity method (15)
846 1,073 Tax expense (229) (309) Tax rate % 27% 29% PAT 617 764 PATAMI 624 771 Margin % 11% 14% Normalised PATAMI 648 678 Margin % 12% 12%
NB (1) Depreciation and amortisation excludes the amortisation
film library and programme rights which is expensed as part of content costs (cost
(2) Normalised PATAMI excludes post-tax impact of unrealised forex gain/(loss) (YTD FY18: RM93m, FY17: (RM24m) (3) Numbers may not add up due to rounding differences
(2) (1)
24 | 4QFY18 results
(RM mn) FY17 FY18 Non-current assets 4,559 4,807 Property, plant and equipment 1,818 2,401 Other non-current assets 2,741 2,406 Current assets 1,707 2,041 Receivables and prepayments 859 1,012 Cash and bank balances(1) 647 962 Other current assets 202 67 6,266 6,848 (RM mn) FY17 FY18 Non-current liabilities 3,356 3,791 Payables 490 390 Borrowings 2,776 3,319 Other non-current liabilities 90 82 Current liabilities 2,280 2,404 Payables 1,627 1,653 Borrowings 629 646 Other current liabilities 24 105 Shareholders’ equity 630 653 6,266 6,848
Net debt / LTM EBITDA: 1.7x
NB (1) Includes money market unit trusts (2) Numbers may not add up due to rounding differences
25 | 4QFY18 results
1,619 308 308 1,060 678 4QFY18 Finance lease SFCL Unrated MTN RM term loan USD term loan
(RM mn)
Total borrowings
Total borrowings of RM3,965mn is net
USD term loan RM term loan Finance lease (primarily satellite transponders)
▪ As at 31 January 2018, outstanding principal US dollar term loan stood at US$173.3mn ▪ First drawdown date on 8 June 2011, amortisation schedule with final maturity date on 8 June 2021. Average life: 7 years ▪ Fully hedged via cross currency interest rate swap at an exchange rate of USD/RM3.0189 and an all-in interest rate of 4.19% p.a. ▪ The tenth principal repayment of USD24.75mn (RM74.72mn) is scheduled to be paid on 8 June 2018 ▪ As at 31 January 2018, total outstanding principal RM term loan stood at RM1,050mn. ▪ First drawdown date on 19 May 2011, amortisation schedule with final maturity date on 19 May 2021. Average life: 7 years ▪ All-in interest rate (post-hedging) for the hedged portion of RM787.5mn is 5.47% p.a. while balance unhedged of RM262.5mn stood at 4.89% p.a. (variable floating rate based on cost of funds) ▪ The tenth principal repayment of RM150mn is scheduled to be paid on 19 May 2018 ▪ Finance lease related to lease of Ku-band transponders on MEASAT-3, MEASAT-3A and MEASAT-3B. Payment arrangement for the remaining contractual years for M3 and M3A have been redenominated into Ringgit at USD/RM3.0445 w.e.f. 21 May 2013. The unhedged portion of the finance lease related to M3B is USD291mn ▪ Effective interest rate: 6.2%, 4.6%, 12.5% and 5.6% p.a. for M3, M3-T11, M3A and M3B respectively, average life: 15 years
Unrated MTN
▪ The first series of notes under the unrated medium term notes (MTN) programme of up to RM3.0bn in nominal value for up to 15-year tenor was issued on 10 August 2017. The issuance was for RM300mn with a 5-year tenor at fixed rate of 5.30% p.a. with semi-annual coupon payment ▪ Bullet repayment on 10 August 2022
26 | 4QFY18 results Synthetic Foreign Currency Loan (SFCL)
▪ The USD150 mn SFCL facility of 4 years 11 months tenor amounted to RM612.8mn upon conversion at the agreed exchange rate of USD/RM4.0850 ▪ Drawn down in 2 tranches of RM306.4mn each on 29 December 2017 and 28 February 2018 respectively, at a fixed rate of 4.80% p.a. with quarterly interest payment ▪ Bullet repayment on 29 November 2022