Astro Malaysia Holdings Bhd. · MYX:ASTRO
Astro Malaysia Holdings Bhd — Q4 FY2013 Earnings Presentation
22 slides from Astro Malaysia Holdings Bhd's earnings presentation, Mar 14, 2013
Slide 1: 4th quarter and unaudited full year results
4th quarter and unaudited full year results 14th March 2013
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Key strategic imperatives adopted in FY13 already generating strong returns
Key strategic imperatives adopted in FY13 already generating strong returns Extend Market Drive ARPU through Differentiate on Deliver sustainable Leadership Innovation Content returns for shareholders Double digit revenue growth in FY13, underpinned by high take-up of value-added products and servic
Slide 4: FY13 snapshot — executing on growth strategy
FY13 snapshot — executing on growth strategy Highlights FY12 (PF) FY13 Growth TV households (000s)(1) 6,568 6,747 3% TV household penetration(2) 47% 52% 5pp TV household penetration (000s) 3,067 3,485 14% Pay TV households (000s) 3,067 3,276 7% NJOI households (000s) N/A 209 N/A Pay TV gross adds (0
Slide 5: Proven execution strength delivers stellar growth underpinned by net adds and ARPU
Proven execution strength delivers stellar growth underpinned by growth in net adds and ARPU… Residential customers (000s) ARPU (RM) Pay-TV NJOI 209 93.2 91.8 92.3 132 14 91 90.3 89.0 3,213 3,276 3,108 3,166 3,067 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 Customers with B
Slide 6: Higher take-up of value-added products and services from the B.yond swapout
…driven by higher take-up of value-added products and services, especially as a result of the B.yond swapout 64% 260% 244% 1,264 299 11 772 83 3 FY12 FY13 FY12 FY13 FY12 FY13 Multiroom downloads 88% 109% 218 399 727 116 Launched May 348 2012 FY12 FY13 FY12 FY13 FY12 FY13 …securing a greater share of
Slide 7: Fibre broadband ranging from 10-30 Mbps; bundled with HD, PVR, and other products
Fibre broadband ranging from 10-30 Mbps; bundled with HD, PVR, and other products 11k subscribers from 100k FttH homes Additional 1.3 mn homes passed passed, all multiple-dwelling units Highly compelling value proposition for Launched in Q1’FY12—went beyond DTH customers with significant sav
Slide 8: NJOI: Discretionary business model expands Astro target market
Launched in Feb’12, with prepaid packages offered in Jul’12 “Discretionary” business model greatly expands Astro target market Mass reach to gain larger share of TV adex Providing multi-channel TV to all Malaysians, and develops relationship with potential future subscribers Rapidly evolvi
Slide 9: Astro On-the-Go is now available to all Malaysians, at home and worldwide
MALAYSIA Commercial launch was on 3 March 2013 RM25 for Astro customers, value extension for SuperPack and Multiroom customers Non-TV subscribers get access to Pack 1 or Pack 2 for RM30 per month, or RM5 per day, a la carte channels from RM10 – 15 each, and PPV content WORLDWIDE Currently on
Slide 10: Content is our unique differentiator
Content is our unique differentiator Continuing to grow our content line-up Now 164 channels—136 SD and 28 HD; 71 Astro-branded Launched Quan Jia HD in 4QFY13 Key renewals done within budget, leveraging off scale; high visibility on content costs going forward Own content is key Hours of pro
Slide 11: Adex outperformed the industry growth rate of 5%
Adex outperformed the industry growth rate of 5% Adex revenue (RM mn) Share of radex Radio listeners (mn) Reconfigured to gain adex TV Radio Others 53% 53% 12.3 9% 503 11.7 461 8 11 FY12 FY13 FY12 FY13 215 Integrated multi-platform 199 solutions Astro TV Cultivating clients across Share of TV ad
Slide 12: Our brand resonates strongly with Malaysians
Our brand resonates strongly with Malaysians Millward Brown Brand Equity Study 2012 Wave 2 Wave 1 46 39 37 34 28 27 27 22 18 17 11 Base: Total Sample (n=1518) [Weighted to reflect Malaysia proportions]
Slide 13: Making a difference in the community and environment
Making a difference in the community and environment 5,000 employee volunteers contributed 61,500 hours through 670 activities Learning Community Environment Sports and wellness Kampus Astro learning 50,000 NJOI decoders and Strict compliance with ISO Professional football system for 5.3m st
Slide 14: Increasing value proposition continues to drive topline acceleration
Increasing value proposition continues to drive topline acceleration Total revenue (RM mn) TV revenue breakdown (RM mn) TV revenue 93% 94% 11% contribution 4,003 3,610 85 86 10% 4,265 11% 251 280 3,273 3,638 11% FY12 (PF) FY13 Subscription revenue Advertising revenue Other revenue (2) 3,889 Radio re
Slide 15: Operational expenses as % of revenue peaks in FY13 and FY14
Operational expenses as % of revenue peaks in FY13 and FY14 as focused on reinvesting for growth Total operating expenditure (RM mn) Content cost as % 32% 33% Continuous investment in content offerings with of TV revenue additional HD and SD channels; additionally impact 3,514 of Euro 2012 and Olymp
Slide 16: Strong cashflows with disciplined growth capex investments
Strong cashflows with disciplined growth capex investments Total capex (RM mn) Free cash flow (RM mn) (2) as % of total 14% 22% as % of EBITDA 38% 45% revenue Significant focus on as % of PAT 85% 149% 932 B.yond STB rollout 627 545 619 538 277 268 313 Completed CRM transformation FY12 (PF) FY13 prog
Slide 17: Dividend announcement
Dividend announcement Leveraging on invested capital, AMH will continue to be highly cash generative enabling adoption of a progressive dividend policy AMH Board of Directors are very pleased to declare a quarterly dividend of 1.5 sen per share and a final dividend of 1 sen per share subject to
Slide 18: Appendix
Appendix
Slide 19: PAT reconciliation
PAT reconciliation Lower EBITDA due to installation, marketing and distribution costs to convert higher number of subscribers onto (RM mn) FY12 (PF) FY13 the B.yond STB, higher gross adds, as well as marginal increase in content costs due EBITDA 1,415 1,388 to Euro 2012 and Olympics D&A (425) (602)
Slide 20: Group balance sheet overview
Group balance sheet overview (RM mn) FY12 FY13 (RM mn) FY12 FY13 Non-current assets 5,108 4,029 Non-current liabilities 4,246 4,426 Property, plant and equipment 1,654 1,915 Payables 323 706 Advances to immediate holding company 1,500 - Borrowings 3,666 3,556 Other non-current assets 1,954 2,114 Oth
Slide 21: Debt profile
Debt profile Details of Borrowings Total Borrowings (RM mn) US dollar term loan of US$330mn swapped into Ringgit (RM1.0bn), fully drawn on 10 June 2011 Finance lease RM term loan USD term loan 10 year tenor, maturing on 8 June 2021 USD term loan Back ended amortization schedule, with average l
Slide 22: Thank you
Thank you Go Beyond
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