Astro Malaysia Holdings Bhd. · MYX:ASTRO

Astro Malaysia Holdings Bhd — Q1 FY2016 Earnings Presentation

20 slides from Astro Malaysia Holdings Bhd's earnings presentation, Jun 16, 2015

  1. Slide 1: 1st quarter FY16 results

    1st quarter FY16 results 16th June 2015

  2. 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

  3. Slide 3: Key highlights of Q1 FY16 performance

    Key highlights of Q1 FY16 performance 4.0mn to 4.5mn customers Revenue +6% GROW 58% to 64% HH penetration RM1.25bn → RM1.33bn 46% to 49% viewership share 91% on B.yond STBs EBITDA +7% NJOI reached > 1mn customers RM441mn → RM472mn LEAD Local content drives viewership Adex +11% RM122mn → RM136mn RM97

  4. Slide 4: Q1 FY16 snapshot

    Q1 FY16 snapshot Highlights 1QFY15 1QFY16 Growth TV households (000s)(1) 6,908 7,020 2% TV household penetration(2) 58% 64% 6pp TV household penetration (000s) 3,996 4,521 13% Pay TV households (000s) 3,470 3,505 1% NJOI households (000s) 526 1,016 93% Pay TV gross adds (000s) 114 97 (15%) MAT churn

  5. Slide 5: Key customer metrics highlight our dual-model premium and freemium market approach

    Key customer metrics highlight our dual-model premium and freemium market approach Residential customers (000s) ARPU (RM) Churn (%) Pay-TV NJOI 920 1,016 9.9% 9.9% 9.9% 10.3% 9.9% 10.3% 678 813 442 526 99.0 99.0 98.5 98.0 97.1 96.0 3,442 3,470 3,486 3,479 3,510 3,505 4QFY14 1QFY15 2QFY15 3QFY15 4QFY

  6. Slide 6: Upselling of value-added products and services remains a priority

    Upselling of value-added products and services remains a priority (000s) (000s) (000s) 58% 60% 61% 62% 61% 60% 715 746 48 636 679 43 Penetration(1) 532 585 37 33 1,877 1,917 1,939 1,915 26 29 1,675 1,780 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Multir

  7. Slide 7: Local content underpins our sustainable market leadership

    Local content underpins our sustainable market leadership… (1) Pay-TV ...highlighted by record viewership and new content releases 184 Maharaja Lawak Anugerah Meletop Suamiku Encik Sotong Vaara Raasipalan Evening Edition channels Mega Akhir Era 73 Astro-branded 2.6mn 1.7mn 1.4mn 257k 253k channels V

  8. Slide 8: Strengthening our content proposition remains a key focus

    Strengthening our content proposition remains a key focus Enhancing our VOD library Latest Series, Movies and Asian content 7 | 1QFY16 results

  9. Slide 9: Enhancing our digital proposition in FY16

    Enhancing our digital proposition in FY16 AOTG continues to evolve Greater engagement through our digital platforms  Deployment of new platform  > 4mn video views  > 2mn unique viewers. Leveraged on videos and articles around signature shows to boost viewership  Raku was launched on 17 April wit

  10. Slide 10: Go Shop's encouraging start

    Go Shop’s encouraging start  Committed to delivering a world-class shopping experience to all Malaysians through a variety of mediums such as TV, phone, e-commerce and m-commerce  Key performance metrics for the period; – Generated RM37mn in revenues in Q1 outperforming the previous quarter by 48%

  11. Slide 11: Year on year revenue growth continues

    Year on year revenue growth continues (2) Total revenue (RM mn) YoY growth 1,349 1,348 1,330 6% 1,260 1,280 89 72 1,254 100 (10%) 74 79 25 37 80 72 69 17% 67 62 68 53 93 77 72 8% 86 67 81 Other Merchandising (3) Radio TV adex 1,054 1,084 1,053 1,088 1,087 3% 1,032 TV subscription 4QFY14 1QFY15 2QFY1

  12. Slide 12: Advertising income outperformance in challenging market conditions

    Advertising income outperformance in challenging market conditions (1) Total Malaysia gross (2) Advertising income (RM mn) YoY growth ADEX (1) Share of Radex Radio listeners (mn) TV Radio Publications 168 OVERALL ADEX 157 2 63% 12.6 12.6 150 1% 3 149 59% 2 3 136 11% 122 2 (12%) 72 68 2 67 69 RADIO 1

  13. Slide 13: Continued cost management to optimise profit growth

    Continued cost management to optimise profit growth Total operating expenditure (RM mn) 32% 31% 38% 33% 32% 32% Content cost as % of TV revenue 1,079 1,138 1,070 1,053 1,075 1,092 111 125 130 137 125 131 Lower marketing costs compared to 4QFY15 123 147 134 124 due to associated promotion spend on 12

  14. Slide 14: Applying ROI discipline in capex spend

    Applying ROI discipline in capex spend Cash capex (RM mn) Capitalised capex (RM mn) as % of 3% 3% as % of 5% 2% revenue revenue 40 45 4 2 4 17 68 19 27 10 18 FY15 FY16 12  Capitalised capex is significantly lower in 1QFY16 in line FY15 FY16 with lower Pay-TV gross adds and optimisation of Revenue g

  15. Slide 15: Consistently strong cash generation significantly exceeds PATAMI

    Consistently strong cash generation significantly exceeds PATAMI… (RM mn) Free cash flow as % of PATAMI 220% 198% 129 144 426 462 282 333 Cash from Cash from Free cash flow(3) Cash from Cash from Free cash flow (3) (2) operations investing operations investing (2) 1QFY15 1QFY16 …enabling significant

  16. Slide 16: Quarterly dividend announcement

    Quarterly dividend announcement  Leveraging on invested capital, AMH continues to be highly cash generative enabling the adoption of a progressive dividend policy  The Board of Directors of AMH is pleased to declare a quarterly dividend of 2.75 sen per share in respect to 1QFY16  This represents

  17. Slide 17: Appendix

    Appendix

  18. Slide 18: PAT reconciliation

    PAT reconciliation (RM mn) FY15 FY16 EBITDA 441 473 Margin % 35.2% 35.5% Depreciation and amortisation(1) (229) (206) EBIT 212 267 Margin % 16.9% 20.0% Finance income 19 20 Finance cost (64) (58) Share of post tax results from investments 1 2 PBT 168 230 Tax expense (39) (64) Tax rate % 23.4% 27.6%

  19. Slide 19: Group balance sheet overview

    Group balance sheet overview (RM mn) FY15 FY16 (RM mn) FY15 FY16 Non-current assets 4,334 4,229 Non-current liabilities 4,603 3,828 Property, plant and equipment 2,053 1,740 Payables 1,149 657 Other non-current assets 2,281 2,489 Borrowings 3,334 3,074 Other non-current liabilities 120 97 Current as

  20. Slide 20: Debt profile

    Debt profile Total borrowings (RM mn) Details of borrowings Finance lease RM term loan USD term loan  As at 30 April 2015, outstanding principal US dollar term loan stood at US$297mn. The fourth principal repayment amounting to USD16.5mn (RM49.8mn) was paid on 8 June 2015 and the next repayment of

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