Star Media Group Berhad · MYX:STAR
Star Media Group Berhad — The Star Media Group Berhad — 2Q15 Earnings Presentation
37 slides from Star Media Group Berhad's earnings presentation, Aug 24, 2015
Slide 1: Analyst Briefing
Read. Listen. Watch. Think. Be Inspired Analyst Briefing Monday, 24 August 2015 THE STAR MEDIA GROUP 1
Slide 2: Today's Presenters
Today’s Presenters Ragesh Rajendran Datuk Seri Wong Chun Wai Group CFO Group MD/ CEO Calvin Kan Lim Bee Leng Group COO & CEO, Star CRO Radio Group 2
Slide 3: Disclaimer
DISCLAIMER This presentation and the discussion following may contain forward looking statements by The Star Media Group Berhad (“Company”) related to financial, market or industry trends for future period. Actual future performance, outcomes and results may differ materially from those expressed in
Slide 4: Agenda
Agenda 11 2 3 4 Media 2Q15 Quarter 2 Business Outlook Highlights 2015 Group Segments 2H15 & Financials financials Strategy 4
Slide 5: 1H15 ad spend; flat growth on low spend
1H15 ad spend; flat growth on low spend Ad spend by medium share (%) YTD June 2015 45.00% +14.1% 40.00% -9.1% 35.00% 37.6% 34.1% 30.00% Share % 25.00% -9.3% 22.8% 42.8% 20.00% 15.00% 30.9% 10.00% 20.6% +2.9% -0.4% +3.6% +21.2% 5.00% 0.9% 0.9% 3.2% 3.2% 0.3% 0.3% 1.3% 1.0% 0.00% FTA Pay-TV Newspaper
Slide 6: Despite soft environment; our adex grew
Despite soft environment; our adex grew YTD June 2015: Market share (%) 5.4% 2.2% 2.9% 26.5% 63.0% The Star NST The Sun Malay Mail The Edge Source: Nielsen AIS. Numbers have not taken into consideration the discounting factor 6
Slide 7: 2Q15: Key Achievements
2Q15: Key Achievements • The Star ePaper hit a new circulation milestone: 108,375 in June 2015 • Combined print and ePaper circulation breached 400,000 mark for the first time • 2H 2014 circulation of ePaper stood at 85,806 (source ABC) • Continuously looking at innovative ways to adapt to the new m
Slide 8: 2Q15: Key Achievements
2Q15: Key Achievements • ePaper bundling with Sin Chew successful • Extending agreement to continue bundling with Sin Chew 8
Slide 9: 2Q15: Highlights
2Q15: Highlights • Star Publications (M) Berhad is now known as Star Media Group Berhad • New logo, as part of its rebranding exercise, will be launched on Sept 9 • Strong successful campaigns 9
Slide 10: Creative campaigns
Creative campaigns The brand Mountain Dew Neon bottle was featured in its full glory via a jacket wrap printed with fluorescent Ink. A miniature battery-powered Mountain Dew bottle was attached inside, and when switched on illuminates a bright neon green. INTRODUCING THE NEW MOUNTAIN DEW NEON
Slide 11: Creative campaigns
Creative campaigns The Star became a Neon Green ambassador by transforming the masthead and headlines into a cool neon green, with creative blurbs appearing sporadically throughout Main, Star2 and Metro Central. It must be noted The Star is traditionally red and almost NEVER changes its masthead col
Slide 12: Creative campaigns
Creative campaigns A different creative was used to express the luminosity of the Neon Edition — a jacket wrap printed with fluorescent ink with a glow-in-the-dark neon green balloon. REFRESH AND unrest in multiracial country, says PM
Slide 13: Creative campaigns
Creative campaigns The campaign was taken up a notch with a contest ‘Neon It, Snap It, Win it’ expressed via a glow-in-the-dark jacket wrap to spread awareness and encourage public participation in product promotion. GLOW WITH THE NEW MOUNTAIN DEW NEON IT, SNAP IT, —
Slide 14: Creative campaigns
Creative campaigns On day 5, a Call-to-Action was featured Full withdrawal age stays at 55 Many laud move to retain EPF RIM ron Tooay omy NEW MOUNTAIN DEW NEON EDITION | A ar T-ELEVE
Slide 15: Client's testimony
Client’s testimony To develop similar successful campaign with other clients 15
Slide 16: Star Online performance June '14 - June '15
Star Online Online,Performance June ‘14news # 1 for local English - June ‘15 Total Unique Visitors (000) The Star Online 1,400 Month UV 1,200 Jun’14 818 Jul 911 1,000 Aug 836 800 Sep 766 600 Oct 920 Nov 884 400 Dec 1,078 200 Jan ’15 1,156 Feb 1,068 0 Jun'14 Jul Aug Sep Oct Nov Dec Jan '15 Feb Mar Ap
Slide 17: Star Biz, #1 local business news
Star Biz, # 1 local business news Total Unique Visitors (000) 350 Business Vertical 300 Month UV 250 Jun’14 243 200 Jul 245 Aug 240 150 Sep 258 100 Oct 304 50 Nov 226 Dec 243 0 Jun'14 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jan ‘15 318 '15 Feb 229 THEEDGEMARKETS.COM THESTAR.COM.MY Business M
Slide 18: Star Property Performance Jun '14 - Jun '15
Star Property Performance Jun ‘14- Jun ‘15 Total Unique Visitors (000) Property Vertical 400 Month UV 350 Jun’14 201 300 Jul 163 250 Aug 254 Sep 275 200 Oct 275 150 Nov 286 100 Dec 268 Jan ‘15 268 50 Feb 219 0 Mar 333 Jun'14 Jul Aug Sep Oct Nov Dec Jan '15 Feb Mar Apr May Jun Apr 316 IPROPERTY.COM.M
Slide 19: Agenda
Agenda 11 2 3 4 Media 2Q15 Quarter 2 Business Outlook Highlights 2015 Group Segments 2H15 & Financials financials Strategy 19
Slide 20: Performance of Star Media Group Berhad
Performance of Star Media Group Berhad 2Q15 2Q14 Var. 1Q15 Var. 1H15 1H14 Var. (RM million) (2Q15 vs 1Q15) Revenue 266.31 274.52 (3.0)% 217.43 22.5% 483.74 485.67 (0.4)% EBITDA 48.09 59.43 (19.1)% 41.03 17.2% 89.12 89.66 (0.6)% PBT 42.93 52.78 (18.7)% 37.60 14.2% 80.53 74.43 8.2% VSS Expenses - 1.92
Slide 21: Agenda
Agenda 11 2 3 4 Media 2Q15 Quarter 2 Business Outlook Highlights 2015 Group Segments 2H15 & Financials financials Strategy 21
Slide 22: 2Q15 Business Segments
2Q15 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 22
Slide 23: Performance: Print and Digital Segment
Performance of Star Media Group Berhad Print and Digital Segment 2Q15 2Q14 Var. 1Q15 Var. 1H15 1H14 Var. (RM million) (2Q15 vs 1Q15) Revenue 164.98 193.44 (14.7)% 162.60 1.5% 327.58 356.61 (8.1)% EBITDA 45.41 53.29 (14.8)% 45.51 (0.2)% 90.92 84.01 8.2% PBT 39.79 48.00 (17.1)% 44.44 (10.5)% 84.23 72.
Slide 24: Breakdown of Revenue 2Q15
Breakdown of Revenue 2Q15 Rev – RM 164.98 Q-on-Q comparison vs RM162.6 m in 1Q15 RM ‘mil Q-on-Q and H-on-H comparison 2Q 2015 Digital 400 Circulation 4% 12% 350 300 250 200 150 100 50 Advertising 0 84% 1Q 2015 2Q 2015 1H 2015 1H 2014 Advertising Circulation Digital Advertising Circulation Digital 1H
Slide 25: 2Q15 Business Segments
2Q15 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 25
Slide 26: Performance of I.Star Ideas Factory
Performance of I.Star Ideas Factory Perfect Livin’ 2Q15 2Q14 Var. 1Q15 Var. 1H15 1H14 Var. (RM million) (2Q15 vs 1Q15) Revenue 7.93 13.18 (39.8)% 3.47 128.5% 11.40 15.39 (25.9)% EBITDA/ 2.36 6.75 (65.0)% (0.55) 529.1% 1.81 6.37 (71.6)% (LBITDA) PBT/LBT 2.33 6.48 (64.0)% (0.57) 508.8% 1.76 6.13 (71.3
Slide 27: Performance of Cityneon Holdings Limited
Performance of Cityneon Holdings Limited 2Q15 2Q14 Var. 1Q15 Var. 1H15 1H14 Var. (SGD million) (2Q15 vs 1Q15) Revenue 27.74 19.38 43.1% 12.95 114.2% 40.69 30.32 34.2% EBITDA/ 1.15 0.11 917.7% (1.49) 177.2% (0.34) 0.38 (189.5)% (LBITDA) PBT/LBT 0.91 0.02 3856.5% (1.64) 155.5% (0.73) 0.11 (763.6)% EBI
Slide 28: 2Q15 Business Segments
2Q15 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 28
Slide 29: Performance of Li TV Holdings Limited
Performance of Li TV Holdings Limited 2Q15 2Q14 Var. 1Q15 Var. 1H15 1H14 Var. (USD million) (2Q15 vs 1Q15) Revenue 0.60 0.73 (17.8)% 0.78 (23.1)% 1.38 1.55 (11)% (LBITDA) (0.50) (0.48) (4.2)% (0.45) (11.1)% (0.95) (0.85) (11.8)% LBT (0.52) (0.51) (2.0)% (0.44) (18.2)% (0.96) (0.91) (5.5)% EBITDA/ (8
Slide 30: 2Q15 Business Segments
2Q15 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 30
Slide 31: Performance of Radio Operations
Performance of Radio Operations Star Radio Group 2Q15 2Q14 Var. 1Q15 Var. 1H15 1H14 Var. (RM million) Revenue 12.29 13.03 (5.7)% 11.80 4.2% 24.09 25.11 (4.1)% (LBITDA) (0.33) 0.38 (186.8)% 1.10 (130.0)% 0.77 1.08 (28.7)% PBT/(LBT) (0.54) (1.23) 56.1% 0.77 (170.1)% 0.23 (2.37) 109.7% EBITDA/ (2.7)% 2
Slide 32: Agenda
Agenda 11 2 3 4 Media 2Q15 Quarter 2 Business Outlook Highlights 2015 Group Segments 2H15 & Financials financials Strategy 32
Slide 33: Media outlook 2H15
Media outlook 2H15 ECONOMY • Weak economic outlook: Ringgit lowest since 1998; Strong USD; 1. • Low oil prices • BURSA lowest since June 2012 33
Slide 34: Media outlook 2H15
Media outlook 2H15 • Outlook in 2H2015 Adex is not expected to grow 2. STABILITY • Political & economic uncertainty – creates uneasiness with 3. local and foreign investors • Effects of GST continues to linger on 34
Slide 35: Strategies Update for 2H15
Strategies Update for 2H15 1. Expand into video – Star TV 2. Strategic and synergistic acquisitions 35
Slide 36: Strategic & synergistic acquisitions
2. Strategic & synergistic acquisitions Cityneon EGM outcome • Shareholders approved the acquisition of Victory Hill Exhibition Pte Ltd and the proposed Rights Issue at Cityneon EGM on 20 August 2015 • Expected Completion of Rights Issue and acquisition exercise – End Sept 2015 • Expected cash out f
Slide 37: Thank You
THANK YOU THE STAR MEDIA GROUP 37
The Star Media Group Berhad — 2Q15 Earnings Presentation on 6ix