Astro Malaysia Holdings Bhd. · MYX:ASTRO
Astro Malaysia Holdings Bhd — FY2017 Earnings Presentation
29 slides from Astro Malaysia Holdings Bhd's earnings presentation, Mar 28, 2017
Slide 1: 4th Quarter and Full Year FY17 Results
4th Quarter and Full Year FY17 Results 28th March 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: Key highlights of FY17 performance
Key highlights of FY17 performance • 4.8mn to 5.1mn customers GROW • 67% to 71% HH penetration Revenue +2% • 1.3mn to 1.7mn NJOI customers RM5.48bn → RM5.61bn • 95% on B.yond STBs Adex +10% • Vernacular content drives viewership RM640mn → RM705mn LEAD • 76% to 77% share of TV viewership • 15.6mn rad
Slide 4: Winning Malaysian consumers…
Winning Malaysian consumers… Households Individuals Serving households and individuals; multi-screens BEST OF ON-DEMAND AND DAY/DATE Pay (own all windows and screens) Premium • Exclusive content and box sets • Premium window content Cinema On-Demand EST • Content portability Astro First Catch-up Box
Slide 5: …and serving 5.1mn households and 21mn individuals
…and serving 5.1mn households and 21mn individuals, including 1mn Tribe registered users, across the region Households (000s) MAT churn (%) OTT (Registered Users) (mn) 66% 67% 69% 69% 70% 71% Astro GO Tribe Household Penetration Pay-TV NJOI 12.4% 11.9% 1.1 1,395 1,481 1,579 1,654 10.9% 1,163 1,268 9
Slide 6: Increase in viewership share, daily viewers & time spent…
Increase in viewership share, daily viewers & time spent… Pay-TV NJOI 188 72 60 28 Astro-branded HD channels channels channels channels Viewership Share Avg. Daily Viewers (mn) Avg. Time Spent/Day 13.8 13.9 23% +1pp 8.6 8.1 3:51 3:55 77% 2:01 2:01 (47%) FY16 FY17 FY16 FY17 Astro FTA NB (1) Number of
Slide 7: …with growing flagship digital brands & services
…with growing flagship digital brands & services Local No. 1 Ready to scale regionally # 1 Leading local online media on Comscore .com.my 1 Best for reaching millennials & # digital natives 1 Best for reaching Malay # audiences 6 | 4QFY17 results
Slide 8: Gaining a higher share of the consumer wallet
Gaining a higher share of the consumer wallet ARPU (RM) 100.4 99.3 99.0 96.0 93.2 FY13 FY14 FY15 FY16 FY17 7 | 4QFY17 results
Slide 9: 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) 58% 59% 59% 59% 59% 60% 877 903 908 925 966 59 62 62 62 62 831 55 Penetration(1) 1,890 1,938 1,939 1,924 1,902 1,961 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 3QFY16 4
Slide 10: Astro GO: Entertaining fans anytime, anywhere
Astro GO: Entertaining fans anytime, anywhere 203% 23k 3mn Increase of VOD titles, 2.3mn 14.5mn App 16k hours of daily activities Sessions Screen views downloads VOD, 71 linear in Android channels Average Weekly Consumption • Migrated to new OTT platform with new enhanced user interface • Personalis
Slide 11: Breaking viewership records with our diverse IPs
Breaking viewership records with our diverse IPs 2.0mn 210k 5.2mn 4.9mn 318k 5.0mn 2.9mn 10 | 4QFY17 results
Slide 12: Suri Hati Mr. Pilot, our highest-rated show of all time
Suri Hati Mr. Pilot, our highest-rated show of all time MOST WATCHED SHOW 5.2mn VIEWERSHIP MOST TALKED ABOUT SHOW 1mn CONVERSATIONS 4.6mn #1 MOST GOOGLED TOTAL DIGITAL VIEWS DRAMA 46mn SOLD OUT SOCIAL MEDIA REACH GSC MEET & GREET 11 | 4QFY17 results
Slide 13: Strong results from our first animation IP, Didi & Friends
Strong results from our first animation IP, Didi & Friends Content Ratings #1 in App, Music, TV 381mn Views 2.9mn Viewership Astro First Didi & Friends English version #1 Range Karaoke Channel The Series – March launched 2017 394k Subscribers —! Retail & Metrojaya Store, Didi & Friends Streaming, iT
Slide 14: We are transforming our core business…
We are transforming our core business… To be a Digital-First, Cloud-First, Mobile-First Entertainment & Lifestyle company that delivers exceptional customer experiences Organisation People Processes Technology Develop a collaborative Inculcate mindset & Design Astro-optimised Adopt cloud, advanced &
Slide 15: …and well-positioned to capture growth opportunities across the industry
…and well-positioned to capture growth opportunities across the industry TV NextGen TV Multi-Play IoT/Smart Homes Home Connectivity Discretionary • TVOD/PPV Adex • Event passes Digital • P2P • Digital tokens • Gifting Content Wholesale Mobile Homes and individuals 14 | 4QFY17 results
Slide 16: Go Shop: Continued growth across Malaysia and Singapore
Go Shop: Continued growth across Malaysia and Singapore, revenues up 38% YoY An integrated shopping platform with Malaysia’s first 24-hour Malay (Ch. 118) and Chinese language (Ch. 318) home shopping channels, phone, e- commerce and m-commerce In November 2016, Go Shop Singapore, a Mandarin-chan
Slide 17: Our OTT service, Tribe, strengthens our regional proposition
Our OTT service, Tribe, strengthens our regional proposition Through targeted marketing and strong partnerships across both the Philippines and Indonesia, Tribe has reached close to 1 million registered users since launch PHILIPPINES Strategic partnership with telco giant, Globe Telecom, provides Tr
Slide 18: FY17 snapshot
FY17 snapshot Highlights FY16 FY17 Growth TV households (000s)(1) 7,143 7,207 1% TV household penetration(2) 67% 71% 4pp TV household penetration (000s) 4,818 5,121 6% NB (1) TV household data sourced from the Pay TV households (000s) 3,550 3,467 (2%) Department of Statistics Malaysia and NJOI house
Slide 19: YoY revenue growth underpinned by Go Shop and Adex
YoY revenue growth underpinned by Go Shop and Adex (2) Total revenue (RM mn) YoY growth 1,402 1,428 1,424 1,374 1,397 2% 1,369 1,363 1,330 72 84 68 62 2% 69 77 72 74 70 63 62 61 38% 38 52 64 37 81 78 87 83 86 11% 62 75 72 75 87 86 96 99 105 95 10% 78 (1) Other Go Shop Radio TV adex 0% TV subscriptio
Slide 20: Advertising income consistently outperforming the industry
Advertising income consistently outperforming the industry (1) (2) (3) Advertising income (RM mn) YoY growth Share of Radex Radio listeners (mn) Total Malaysia TV Radio Publications gross ADEX YoY 186 188 growth (2)(5) 73% 1 1 181 10% 70% 15.6 174 0 12.8 168 161 2 (66)% 2 2 150 OVERALL ADEX 136 1 83
Slide 21: Cost optimisation success despite global rise in content cost and USD strength
Cost optimisation success despite global rise in content cost and USD strength Total operating expenditure (RM mn) Content cost as % 32% 33% 34% 33% 33% 39% 37% 34% of TV revenue 1,184 1,136 1,070 1,095 1,121 1,113 1,129 1,085 114 166 133 131 118 135 147 131 141 139 121 120 124 124 117 136 406 415 4
Slide 22: Applying ROI discipline in capex spend
Applying ROI discipline in capex spend Cash capex (RM mn) Capitalised capex (RM mn) as % of 6% 4% as % of 6% 3% revenue 304 revenue 32 246 122 83 106 150 316 57 163 FY16 FY17 FY16 FY17 Revenue Growth Digitalisation Capital Maintenance STBs/ODUs are owned by Astro, and are capitalised Key capex inv
Slide 23: Strong cash generation significantly exceeds PATAMI…
Strong cash generation significantly exceeds PATAMI… Free cash flow (RM mn) as % of PATAMI 207% 211% 668 572 1,944 1,888 1,276 1,317 (2) (3) (2) (3) Cash from Cash from Free cash flow Cash from Cash from Free cash flow operations investing operations investing FY16 FY17 …enabling significant flexibi
Slide 24: 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 4QFY17 and a final dividend of 0.50 sen per share, subject to shareholders’ approval at the upcomin
Slide 25: Appendix
Appendix
Slide 26: PAT reconciliation
PAT reconciliation (RM mn) FY16 FY17 EBITDA 1,941 1,817 Margin % 35% 32% (1) Depreciation and amortisation (826) (721) EBIT 1,115 1,095 NB Margin % 20% 20% (1) Depreciation and amortisation excludes the amortisation of film Finance income 53 35 library and programme rights which is expensed as part
Slide 27: Group Balance Sheet overview
Group Balance Sheet overview (RM mn) FY16 FY17 (RM mn) FY16 FY17 Non-current assets 4,813 4,559 Non-current liabilities 4,006 3,356 Property, plant and equipment 2,129 1,818 Payables 626 490 Other non-current assets 2,683 2,741 Borrowings 3,286 2,776 Other non-current liabilities 94 90 Current asset
Slide 28: Debt profile
Debt profile Total borrowings (RM mn) Details of borrowings Finance lease RM term loan USD term loan As at 31 January 2017, outstanding principal US dollar term loan stood at US$222.75mn. The eighth principal repayment of USD24.75mn (RM74.72mn) is scheduled to be paid on 8 June 2017 Total borrowin
Slide 29: Thank you
Thank you Go Beyond
Astro Malaysia Holdings Berhad — FY2017 Earnings Presentation on 6ix