Astro Malaysia Holdings Bhd. · MYX:ASTRO
Astro Malaysia Holdings Bhd — Q4 FY2018 Earnings Presentation
28 slides from Astro Malaysia Holdings Bhd's earnings presentation, Mar 28, 2018
Slide 1: 4th Quarter & Full Year FY18 Results
4th Quarter & Full Year FY18 Results 28th March 2018
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: 4Q FY18 key performance highlights
4Q FY18 key performance highlights • 5.1mn to 5.5mn households • 71% to 75% household penetration Revenue -1% RM5.61bn→ RM5.53bn • 1.6mn Astro GO registered users GROW • 1.3mn Go Shop registered customers • • 3.1mn Tribe total installs 6.9mn average monthly unique visitors Adex +2% RM705mn→ RM722mn
Slide 4: FY18 year-on-year overview
FY18 year-on-year overview NB Highlights FY17 FY18 Growth (1) TV household data sourced from the TV households (000s)(1) 7,207 7,321 2% Department of Statistics Malaysia and Media Partners Asia TV household penetration(2) 71% 75% 4pp (2) Household penetration comprises TV customer base (000s) 5,121
Slide 5: Growing our household and digital reach
Growing our household and digital reach Average Monthly Households (000s) Connected STBs (1) (000s) ARPU (RM) Unique Visitors (2) (mn) Household Penetration 71% 75% +59% +25% 0.5% 804 5,489 6.9 5,121 507 100.4 99.9 5.5 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 NB (1) Connected set-top boxes (STBs) are
Slide 6: Maintaining our TV viewership share
Maintaining our TV viewership share Pay-TV NJOI 190 73 30 channels Astro-branded channels channels TV Viewership Share Avg. Daily Viewers (mn) Avg. Time Spent/Day -4.3% -2.6% 13.9 13.3 +0.2pp 23% -11.1% +4.1% 77% 8.1 7.2 3:55 3:49 2:01 2:06 FY17 FY18 FY17 FY18 Astro FTA NB (1) Number of channels as
Slide 7: Revenue resilient underpinned by growth drivers
Revenue resilient underpinned by growth drivers (2) Total revenue (RM mn) YoY growth 1,428 1,424 1,420 1,363 1,397 1,397 1,388 (1%) 74 62 1,326 70 61 73 85 64 11% 62 186 188 181 208 150 175 143 196 2% Go Shop Adex Subscription/Others (1) 1,148 1,168 1,174 1,155 1,140 1,149 1,121 1,107 (3%) 1QFY17 2Q
Slide 8: Adex growth amid industry contraction
Adex growth amid industry contraction (1) (2) Advertising income (RM mn) YoY growth Share of Radex Radio listeners (mn) (3) Total Malaysia TV Radio 208 196 gross ADEX YoY 73% 74% 186 188 growth (2)(5) 181 15.6 16.5 175 2% 150 89 OVERALL ADEX 143 84 87 83 (8%) 86 79 (1%) FY17 FY18 FY17 FY18 72 72 RAD
Slide 9: Cost optimisation remains a key focus
Cost optimisation remains a key focus Total operating expenditure (RM mn) Content cost as % of TV 33% 39% 37% 35% 34% 28% 36% 33% revenues 1,184 1,186 1,136 1,129 1,153 1,085 1,029 1,043 687 665 695 706 778 676 624 690 497 471 434 447 409 405 353 408 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18
Slide 10: Applying ROI discipline in capex spend
Applying ROI discipline in capex spend Capex (RM mn) STBs (RM mn) as % of 4% 4% as % of 3% 4% revenue revenue 246 237 200 163 FY17 FY18 FY17 FY18 Key capex investments in FY18 include: ▪ STBs/ODUs are owned by Astro, and are capitalised ▪ Technology infrastructure ▪ STBs/ODUs are conservatively amor
Slide 11: Strong and stable cash generation capabilities
Strong and stable cash generation capabilities Free cash flow (RM mn) as % of PATAMI 211% 177% 572 2,016 652 1,888 1,317 1,364 (2) (3) (2) (3) Cash from Cash from Free cash flow Cash from Cash from Free cash flow operations investing operations investing FY17 FY18 …enabling significant flexibility o
Slide 12: Quarterly dividend announcement
Quarterly dividend announcement ▪ 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 upcomi
Slide 13: Strong growth momentum through continuous innovation
Strong growth momentum through Expansion: Targeting continuous innovation… individuals & going ASEAN Innovation: IP creation, build content brands, VAS & smart bundling Localisation: Vernacular content and self-packaged channels 1st 3D broadcast Aggregation: International channels 1st HD broadcast V
Slide 14: ASEAN's content & consumer company
ASEAN’s content & consumer company TV DIGITAL RADIO COMMERCE 190 channels OTT (Over-The-Top) Service 11 radio brands Digital Assets • Largest Pay-TV operator • 6.9m average monthly • 11 radio brands • 24/7 shopping in Southeast Asia unique viewers across • 16.5m weekly audience experience Malaysia &
Slide 15: Connected STBs drive content consumption and non-linear viewing
Connected STBs drive content consumption and non-linear viewing 804k 50 hrs Connected STBs Connected STBs (+59% YoY) (1) average weekly viewing hours 2x linear homes 25% of customer’s time spent viewing non- linear content 60 hrs 1 in 3 Multiscreen average weekly Multiscreen (1) viewing hours ❖ 23mn
Slide 16: Watching radio
Watching radio 360-degree engagement On-ground events Talents Audio Digital Social Mobile media Engaging with 16.5m audience weekly Maintaining pole position across all 4 key languages 15 | 4QFY18 results
Slide 17: Scaling the individual space
Scaling the individual space • 18 free channels and 15 boxsets of free VOD • Syok Syok Pass (SVOD), >4,000 hours of Korean, Malay and Chinese content with day/date Korean shows Registered Users(1) (mn) App Downloads(1) (mn) Average Weekly Viewing (mins) +47% +38% +45% 247 4.4 179 1.6 1.1 3.0 FY17 FY
Slide 18: Expanding regionally via Tribe
Expanding regionally via Tribe Total installs(1) (mn) Monthly average time spent(2) • Tribe’s 1st original +312% IP, Gantung premiered this 122 139 quarter and mins mins quickly emerged as a top title on Tribe Indonesia Q4FY17 Q4FY18 3.13 Presence in the ASEAN region • Partnering Telkomsel, Indonesi
Slide 19: Tamago: a social platform targeting millennials
Tamago: a social platform targeting millennials 1.3m downloads & growing http://www.tamago.live Dec 2017 Launched in partnership with Huomao Tamago live streamed the Hatsune Miku Expo 2017 to fans globally Live streaming focusing on localised ASEAN user generated content • A cyber celebrity from Jap
Slide 20: Harnessing our talent and reach to grow No.1 home shopping
Harnessing our talent and reach to grow Registered Customers (1) Revenue(1) (RM mn) (‘000) • Live celebrity-hosted programmes in both Malay & Chinese languages 38% • Selected airings of Go Shop 11% programs on Astro branded channels • Simultaneous live streaming on linear and digital platforms inclu
Slide 21: Viewership underpinned by original IPs
Viewership underpinned by original IPs Key Malay IPs TV viewership 4.9mn 4.0mn 3.1mn 2.6mn 2.2mn 1.6mn On Demand 120k 52k 270k 10k 384k 18k downloads Digital views 29mn 13mn 5mn 3mn 6mn 241mn Key Chinese IPs Miss Astro Chinese Prime Talk Classic Golden Melody Evening Edition International Pageant Hu
Slide 22: Digital assets gaining steady traction
Digital assets gaining steady traction #1 Malay #1 Chinese 393mn 2.3mn Entertainment digital views fans Entertainment Portal in Malaysia (+23% YoY) (+15% YoY) Portal in Malaysia Reality Drama 36mn 155k digital views fans (+56% YoY) (+169% YoY) Signature Spinoffs Undercover Selebriti The House s4 Mat
Slide 23: Continuing to champion regional verticals
Continuing to champion regional verticals Nusantara Kids Horror Asian horror original eSports Premium Nusantara Transmedia kids and series Asian and movies horror original The next wave of sports original series animation content with series and movies for the millennials Asian values • Distribution
Slide 24: Appendix
Appendix
Slide 25: PAT reconciliation
PAT reconciliation (RM mn) FY17 FY18 EBITDA 1,817 1,820 Margin % 32% 33% Depreciation and amortisation (1) (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 e
Slide 26: Balance sheet overview
Balance sheet overview (RM mn) FY17 FY18 (RM mn) FY17 FY18 Non-current assets 4,559 4,807 Non-current liabilities 3,356 3,791 Property, plant and equipment 1,818 2,401 Payables 490 390 Other non-current assets 2,741 2,406 Borrowings 2,776 3,319 Other non-current liabilities 90 82 Current assets 1,70
Slide 27: Debt profile
Debt profile ▪ As at 31 January 2018, outstanding principal US dollar term loan stood at US$173.3mn Total borrowings (RM mn) ▪ First drawdown date on 8 June 2011, amortisation schedule with final maturity date on 8 June 2021. Average life: 7 years Finance lease SFCL USD term ▪ Fully hedged via cross
Slide 28: Thank you
Thank you Go Beyond
Astro Malaysia Holdings Berhad — Q4 FY2018 Earnings Presentation on 6ix