Astro Malaysia Holdings Bhd. · MYX:ASTRO
Astro Malaysia Holdings Bhd — Q3 FY2018 Earnings Presentation
30 slides from Astro Malaysia Holdings Bhd's earnings presentation, Dec 6, 2017
Slide 1: 3rd Quarter FY18 Results
3rd Quarter FY18 Results 6th December 2017
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: 3Q FY18 key performance highlights
3Q FY18 key performance highlights • 5.0mn to 5.3mn customers Revenue -2% • 70% to 73% household penetration RM4.22bn→ RM4.14bn GROW • 1.5mn Astro GO registered users • 1.2mn Go Shop registered customers • 2.5mn Tribe registered users Adex +0.4% • 7.4mn monthly unique visitors RM524mn→ RM526mn • Ver
Slide 4: 3Q FY18 year-on-year overview
3Q FY18 year-on-year overview NB Highlights YTD FY17 YTD FY18 Growth (1) TV household data sourced from the Department of Statistics Malaysia and TV households (000s)(1) 7,181 7,288 1% Media Partners Asia TV household penetration(2) 70% 73% 3pp (2) Household penetration comprises residential Pay-TV
Slide 5: Serving 5.3mn households with 702k connected homes and 7.4mn monthly visitors
Serving 5.3mn households with 702k connected homes and 7.4mn monthly visitors to our digital platforms Households (000s) Connected Boxes (000s) ARPU (RM) Monthly Unique Visitors (1) (mn) Household Penetration 70% 73% +50% +1% 702 7.4 7.4 5,334 5,021 99.9 100.7 469 YTD FY17 YTD FY18 YTD FY17 YTD FY18
Slide 6: TV viewership share on the rise
TV viewership share on the rise Pay-TV NJOI 189 73 61 28 channels Astro-branded HD channels channels channels TV Viewership Share Avg. Daily Viewers (mn) Avg. Time Spent/Day -3.6% -1.7% 13.9 13.4 +0.3pp 23% -9.8% +4.1% 8.2 3:53 3:49 77% 7.4 2:01 2:06 YTD FY17 YTD FY18 YTD FY17 YTD FY18 Astro FTA NB
Slide 7: Revenues resilient in a challenging environment
Revenues resilient in a challenging environment (2) Total revenue (RM mn) YoY growth 1,428 1,424 1,420 1,397 1,397 (2%) 74 62 1,326 70 61 73 2% 62 186 188 181 208 175 143 0.4% Go Shop Adex Subscription/Others (1) 1,168 1,174 1,155 1,140 1,149 1,121 (2%) 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 NB (
Slide 8: Adex stable amid industry contraction
Adex stable amid industry contraction (1) (2) Advertising income (RM mn) YoY growth Share of Radex Radio listeners (mn) (3) Total Malaysia TV Radio 208 gross ADEX YoY 73% 74% 186 188 growth (2)(5) 181 15.6 16.5 175 0.4% 89 OVERALL ADEX 143 (8%) 87 83 86 79 (1%) YTD FY17 YTD FY18 YTD FY17 YTD FY18 72
Slide 9: Cost optimisation remains a key focus
Cost optimisation remains a key focus Total operating expenditure (RM mn) 28% 36% Content cost as % 39% 37% 35% 34% of TV revenues 1,184 1,136 1,129 1,153 1,029 1,043 687 665 695 706 624 690 497 471 434 447 405 353 2QFY17 3QFY17 4QFY17 1QFY18 2Q FY18 3Q FY18 Content costs Other expenses NB (1) Conte
Slide 10: 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 3% 4% revenue revenue 130 123 17 26 76 58 163 108 37 39 YTD FY17 YTD FY18 YTD FY17 YTD FY18 Revenue Growth Digitalisation Capital Maintenance ▪ STBs/ODUs are owned by Astro, and are capitalised
Slide 11: Strong cash generation consistently exceeds PATAMI
Strong cash generation consistently exceeds PATAMI… Free cash flow (RM mn) as % of PATAMI 210% 197% 391 416 1,398 1,576 1,160 1,006 (2) (3) (2) (3) Cash from Cash from Free cash flow Cash from Cash from Free cash flow operations investing operations investing YTD FY17 YTD FY18 …enabling significant
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 3QFY18 ▪ Quarterly dividend entitlement and payment dates: 21 December 2017 and 5 January 2018, res
Slide 13: Multi-platform ecosystem of households and individuals
Multi-platform ecosystem of households and individuals #1 Entertainment 7.4mn Brand monthly unique visitors(1) #1Home Households Individuals 45mn Shopping social media fanbase #1 Radio Listenership NB (1) Monthly unique visitors are end of period figures (as at 31 October) referring to visitors to A
Slide 14: Capturing the OTT space via Astro Go and NJOI Now
Capturing the OTT space via Astro Go and NJOI Now • 18 free channels Astro subscribers with • SVOD with Korean, Smart TVs(1) will soon Malay & Chinese be able to enjoy Astro programmes on their big screens! coming soon Available Q4 FY18 Registered Users(2) (mn) App Downloads(2) (mn) Average Weekly V
Slide 15: Building engagement via On Demand
Building engagement via On Demand 20,000 hours of OD titles now available per month (up 4X since 2013) on multiple platforms 33% of OD viewing takes place from 3 – 6pm & 9pm – midnight Average viewing hours for OD homes is 2.5x linear homes (OD home: 60 hrs/week) 14 | 3QFY18 results
Slide 16: Leveraging consumer insights and data analytics
Leveraging consumer insights and data analytics.. Customer Customer Profiling Omni-channel Right Info Gathering & Segmentation Customer Targeting Product & Services Data Pool + User CUSTOMER Segmentation & Analytics Model Email Inbound ID2 ID3 ID4 Push Sport Movie Malay Display SMS Enthusiast Addict
Slide 17: Providing digital first marketing solutions
Providing digital first marketing solutions.. • Catering to advertisers growing demand for digital adex solutions • Inventory across Astro’s digital assets and third- party partner publishers • Core offerings include: BRANDED VIDEOS SOCIAL PROGRAMMATIC DISPLAY CONTENT MARKETING ADS … to create value
Slide 18: Extending advertisers' reach of digital natives
Extending advertisers’ reach of digital natives.. MODERN MUSLIM LIFESTYLE BRAND YOUNG, DIGITAL-FIRST CHINESE • First Malaysian radio brand for modern Muslims ENTERTAINMENT BRAND • Contemporary content including lifestyle, • Connect and engage with Chinese digital natives entertainment, fashion, tech
Slide 19: Igniting social influencer marketing
Igniting social influencer marketing.. ROCKETFUEL NETWORK ROCKETFUEL RECORDS ROCKETFUEL TALENT CREATES CONTENT MAKES MUSIC MANAGES TALENT Grow owned-channel IPs, Grow music IP ownership Expand roster of 360o talent management of content through production and via signing of new stars, creator channe
Slide 20: Go Shop expands program and payment offerings
Go Shop expands program and payment offerings Registered Customers(1) (000s) 39% 1,209 870 • Launch of new live celebrity-hosted programmes: Mei Yan Show and Go Awal • New partnership with Digi’s vcash to provide e-COD solution • Time slots for Go Shop programs on Astro channels 3QFY17 3QFY18 • Live
Slide 21: Tribe focused on scaling regionally
Tribe focused on scaling regionally Registered Users(1) (mn) MOBILE-FIRST OTT FOR ASEAN • Built to serve connected millennials within the ASEAN region with fresh, curated +594% content across relevant genres including Tribe’s own Originals • Affiliate partnership with key 2.50 brands to create aware
Slide 22: Leading in creation of local vernacular content
Leading in creation of local vernacular content.. SEPAHTU REUNION MAHARAJA LAWAK SURI HATI MR. PILOT ANUGERAH HERO SEORANG LIVE MEGA 2017 MELETOP ERA 2017 CINDERELLA 3.2mn 4.9mn 5.2mn 3.6mn 3.1mn viewership viewership viewership viewership viewership ASTRO C.G.M 2017 EVENING EDITION PRIME TALK RASIK
Slide 23: Top grossing local movies of all time
.. including the top grossing local movies of all time • Abang Long Fadil 2 (ALF2) recently emerged Gross Box as the highest grossing local movie ever at Office the Malaysian box office • Astro has released four of the Top 5 local RM18mn movies of all time with Polis Evo (2015), The Journey (2014) a
Slide 24: The longest running singing reality show
..and the longest running singing reality show Now in its 14th season, Akademi Fantasia (AF) has been recognised in the Malaysian Book of Records as the longest running singing reality TV show in Malaysia Viewership 2.5mn TV ratings DTAM Kantar Media Digital Views 9mn+ Across all Gempak.com.my platf
Slide 25: Championing cross border content verticals
Championing cross border content verticals.. In October, BOO launched its first original series – 3 A.M. Bangkok Ghost Stories – a co- production with top Thailand horror content Horror producer, Five Star Horror Asian horror original Production. Asian serieshorror original and movies series and mov
Slide 26: Appendix
Appendix
Slide 27: PAT reconciliation
PAT reconciliation (RM mn) YTD FY17 YTD FY18 EBITDA 1,372 1,429 Margin % 33% 34% Depreciation and amortisation (1) 551 500 EBIT 822 929 Margin % 19% 22% Finance income 30 57 Finance cost (181) (171) Share of post tax results from investments 3 (1) NB PBT 658 815 (1) Depreciation and amortisation exc
Slide 28: Balance sheet overview
Balance sheet overview (RM mn) FY17 3QFY18 (RM mn) FY17 3QFY18 Non-current assets 4,559 4,890 Non-current liabilities 3,356 3,995 Property, plant and equipment 1,818 2,436 Payables 490 468 Other non-current assets 2,741 2,453 Borrowings 2,776 3,440 Other non-current liabilities 90 87 Current assets
Slide 29: Debt profile
Debt profile ▪ As at 31 October 2017, outstanding principal US dollar term loan stood at Total borrowings (RM mn) US$198.0mn. The ninth principal repayment of USD24.75mn (RM74.72mn) is scheduled to be paid on 8 December 2017 Finance lease Unrated MTN USD term ▪ Fully hedged via cross currency intere
Slide 30: Thank you
Thank you Go Beyond
Astro Malaysia Holdings Berhad — Q3 FY2018 Earnings Presentation on 6ix