Astro Malaysia Holdings Bhd. · MYX:ASTRO

Astro Malaysia Holdings Bhd — FY2016 Earnings Presentation

23 slides from Astro Malaysia Holdings Bhd's earnings presentation, Mar 22, 2016

  1. Slide 1: 4th quarter and full year FY16 results

    4th quarter and full year FY16 results 22nd March 2016

  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 FY16 performance

    Key highlights of FY16 performance 4.4mn to 4.8mn customers Revenue +5% GROW 63% to 67% HH penetration RM5.23bn → RM5.48bn 49% to 54% viewership share 93% on B.yond STBs EBITDA +7% RM1.81bn → RM1.94bn LEAD Launched 13 HD & 2 SD channels Local content continues to drive viewership Adex +9% RM589mn →

  4. Slide 4: FY16 snapshot

    FY16 snapshot Highlights FY15 FY16 Growth TV households (000s)(1) 6,979 7,143 2% TV household penetration(2) 63% 67% 4pp TV household penetration (000s) 4,429 4,818 9% Pay TV households (000s) 3,510 3,550 1% NJOI households (000s) 920 1,268 38% Pay TV gross adds (000s) 411 373 (9%) MAT churn 10% 9%

  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 99.0 99.0 99.1 99.3 99.3 1,163 1,268 10.3% 9.9% 10.3% 9.8% 9.5% 920 1,016 1,071 98.5 9.4% 813 3,479 3,510 3,505 3,520 3,534 3,550 3QFY15 4QFY15 1QFY16 2QFY1

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

    Upselling of value-added products and services remains a key priority (000s) (000s) (000s) 62% 61% 60% 59% 58% 59% 831 877 59 746 786 51 55 Penetration(1) 679 715 48 43 1,917 1,939 1,915 1,888 1,890 1,938 37 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Mu

  7. Slide 7: Sustaining our leadership in local content

    Sustaining our leadership in local content Strong viewership across vernacular content offerings (1) Viewership Share (%) Pay-TV 54 21 local IPs surpassed 1m viewership +5% 183 >3m viewership >1m viewership channels 49 47 69 40 43 Astro-branded FY12 FY13 FY14 FY15 FY16 channels Most watched Astro co

  8. Slide 8: Continuing to shatter records in the local film industry

    Continuing to shatter records in the local film industry No.1 local movie – RM18mil No.1 most talked about film in Malaysia – RM16mil to date 7 | 4QFY16 results

  9. Slide 9: Connecting with the millennials - setting new milestones in digital

    Connecting with the millennials - setting new milestones in digital 1st ever E-Sports 1st digital content 1st and largest social No.1 Malay social media Telecast in the region targeting youths network for kids in entertainment brand Malaysia  2m monthly users  5m monthly page views  37m total vid

  10. Slide 10: We are now serving 67% of Malaysian homes

    FY16 performance highlights We are now serving 67% of Malaysian homes 38% Managed 9.5% 9 | 4QFY16 results 9 |

  11. Slide 11: Go Shop becoming a key growth driver

    Go Shop becoming a key growth driver  Malaysia’s first 24 hour Malay and Chinese language homeshopping channels  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 FY16

  12. Slide 12: Enhanced set top box experience

    Enhanced set top box experience Watch what you want, anytime Thousands of hours of content via On Demand 187% On Demand • Search all content traffic increase • Watch thousands of hours of content via On Demand • Significant growth in On Demand traffic OD Free, OD Plus and OD Store Enhanced customer

  13. Slide 13: Strengthening our OTT proposition – on demand & linear

    Strengthening our OTT proposition – on demand & linear 1st No.1 122k OTT service in Malaysia to have Apple “Great Entertainment Apps” & Google “Top 10 content downloads 56 10k offline viewing over 3 months since Linear hours of Free Entertainment launch in Sep-2015 channels content Apps” in Malaysia

  14. Slide 14: Year on year revenue growth continues despite challenging market conditions

    Year on year revenue growth continues despite challenging market conditions (2) Total revenue (RM mn) YoY growth 1,374 1,402 5% 1,348 1,369 1,330 72 (9)% 1,280 71 80 89 71 38 63 642% 79 25 37 52 81 75 78 13% 69 62 67 93 77 73 86 84 5% 81 Other Go Shop Radio TV adex 1,088 1,087 1,094 1,096 2% 1,053 1

  15. Slide 15: Advertising income growth underpinned by strong viewership and listenership share

    Advertising income growth underpinned by strong viewership and listenership share (1) (2) Total Malaysia gross (4) (5) Advertising income (RM mn) YoY growth ADEX (2) (3) Share of Radex Radio listeners (mn) TV Radio Publications 9% 70% 168 174 OVERALL ADEX 67% 2 161 2 (12%) 12.9 12.8 150 2 (1%) 149 2

  16. Slide 16: Continued cost management to optimise profit growth

    Continued cost management to optimise profit growth Total operating expenditure (RM mn) Content cost as 33% 32% 32% 33% 34% 33% % of TV revenue 1,075 1,092 1,121 1,113 1,070 1,095 125 131 114 118 137 131 134 124 141 139 132 124 432 417 428 440 436 410 395 402 397 411 427 420 3QFY15 4QFY15 1QFY16 2QF

  17. Slide 17: ROI focus & discipline in capex spend – leveraging on invested infrastructure

    ROI focus & discipline in capex spend – leveraging on invested infrastructure Cash capex (RM mn) Capitalised capex (RM mn) as % of 7% 6% as % of 5% 6% revenue revenue 352 304 26 64 38 30 316 93 244 90 170 147 FY15 FY16  STBs/ODUs are owned by Astro, and are capitalised FY15 FY16  STBs/ODUs are con

  18. Slide 18: Consistently strong cash generation exceeds PATAMI by 2x

    Consistently strong cash generation exceeds PATAMI by 2x Free cash flow (RM mn) as % of PATAMI 255% 207% 746 668 2,071 1,944 1,325 1,276 Cash from Cash from Free cash flow(3) Cash from Cash from Free cash flow (3) (2) operations investing operations investing (2) FY15 FY16 …enabling significant flex

  19. Slide 19: Quarterly dividend announcement

    Quarterly dividend announcement  Leveraging on invested capital, AMH continues to be highly cash generative enabling the adoption of a stable dividend policy  The Board of Directors of AMH is pleased to declare a quarterly dividend of 2.75 sen per share in respect to 4QFY16 and a final dividend of

  20. Slide 20: Appendix

    Appendix

  21. Slide 21: PAT reconciliation

    PAT reconciliation (RM mn) FY15 FY16 EBITDA 1,808 1,941 Margin % 35% 35% Depreciation and amortisation(1) (888) (826) Increase in finance cost is EBIT 920 1,115 largely due to unrealised Margin % 18% 20% forex losses arising from Finance income 57 53 mark-to-market revaluation Finance cost (250) (34

  22. Slide 22: Group balance sheet overview

    Group balance sheet overview (RM mn) FY15 FY16 (RM mn) FY15 FY16 Non-current assets 4,425 4,813 Non-current liabilities 3,809 4,006 Property, plant and equipment 1,881 2,129 Payables 612 626 Other non-current assets 2,544 2,683 Borrowings 3,103 3,286 Other non-current liabilities 94 94 Current asset

  23. Slide 23: Debt profile

    Debt profile Total borrowings (RM mn) Details of borrowings Finance lease RM term loan USD term loan  As at 31 January 2016, outstanding principal US dollar term loan stood at US$264mn after principal repayment of USD16.5mn in Q4. The sixth repayment of USD16.5mn is scheduled to be paid on 8 June 2

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