Astro Malaysia Holdings Bhd. · MYX:ASTRO

Astro Malaysia Holdings Bhd — Q2 FY2016 Earnings Presentation

20 slides from Astro Malaysia Holdings Bhd's earnings presentation, Sep 15, 2015

  1. Slide 1: 2nd quarter FY16 results

    2nd quarter FY16 results 15th Sept 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 1H FY16 performance

    Key highlights of 1H FY16 performance 4.2mn to 4.6mn customers Revenue +4% GROW 60% to 65% HH penetration RM2.60bn → RM2.70bn 47% to 51% viewership share 91% on B.yond STBs Adex +5% RM290mn → RM305mn LEAD Local content continues to drive viewership 1st time to broadcast eSports EBITDA +7% RM903mn →

  4. Slide 4: 1H FY16 snapshot

    1H FY16 snapshot Highlights 1HFY15 1HFY16 Growth TV households (000s)(1) 6,932 7,061 2% TV household penetration(2) 60% 65% 5pp TV household penetration (000s) 4,164 4,590 10% Pay TV households (000s) 3,486 3,520 1% NJOI households (000s) 678 1,071 58% Pay TV gross adds (000s) 216 181 (16%) MAT chur

  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 1,071 9.9% 9.9% 10.3% 9.9% 10.3% 9.8% 526 678 813 99.0 99.0 99.1 98.5 98.0 97.1 3,470 3,486 3,479 3,510 3,505 3,520 1QFY15 2QFY15 3QFY15 4QFY15 1Q

  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) 60% 61% 62% 61% 60% 59% 746 786 51 679 715 48 585 636 43 Penetration(1) 37 1,939 1,915 1,888 1,780 1,877 1,917 29 33 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Multir

  7. Slide 7: Reinforcing our leadership in local content

    Reinforcing our leadership in local content (1) Local content continues to drive viewership across all segments Pay-TV KILAUAN EMAS PERSADA PELAMIN FANTASIA 179 Viewership Share Silver hair singing competition Reality show on fulfilling someone’s wedding dream channels 1.7m viewership 1.1m viewershi

  8. Slide 8: Expanding our day/date offerings

    Expanding our day/date offerings Started with 15 day-date titles 1 year ago; growing to 24 presently; with many more to come

  9. Slide 9: Connecting with a new generation of Astro customers through eSports

    Connecting with a new generation of Astro customers through eSports The International 2015 DOTA 2 Championships About 1st time to broadcast eSports >67mil Video views on DOTA 2 YouTube Channel 4 – 9 Aug 2015 >$18mil 67 Hours LIVE a multiplayer online Prize Pool for battle arena video game “Nais (Nic

  10. Slide 10: Focused on providing best-in-class user experience through technology and product innovation

    Focused on providing best-in-class user experience through technology and product innovation STB Enhancements as the digital destination of choice Ongoing UI/UX Enhancement Improving the quality and reliability of our streaming technology to provide seamless UI across all screens And more to come… P

  11. Slide 11: 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 1,349 1,348 1,369 4% Decrease in other revenues 1,330 1,280 71 (21%) is primarily due to non- 1,254 100 89 72 38 major sporting year in FY16 79 25 37 14% 80 72 81 vs. FY15 (e.g. FIFA Worl

  12. Slide 12: Advertising income outperformance underpinned by strong viewership and listenership share

    Advertising income outperformance underpinned by strong viewership and listenership share (1) (2) Total Malaysia gross (4) Advertising income (RM mn) YoY growth ADEX (2) (3) Share of Radex Radio listeners (mn) TV Radio Publications 168 168 5% OVERALL ADEX 2 2 12.6 12.6 150 (17%) (1)% 61% 149 2 3 136

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

    Continued cost management to optimise profit growth Total operating expenditure (RM mn) Content cost as 31% 38% 33% 32% 32% 33% % of TV revenue 1,138 1,095 1,053 1,075 1,092 1,070 111 137 125 131 131 130 123 126 132 134 124 124 415 420 410 432 417 428 490 411 377 395 402 397 1QFY15 2QFY15 3QFY15 4QF

  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 5% 4% as % of 4% 4% revenue revenue 124 118 2 10 46 16 112 119 51 51 FY15 FY16 25 41  STBs/ODUs are owned by Astro, and are capitalised FY15 FY16  STBs/ODUs are conservatively amortised over 3 years; note R

  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 235% 193% 317 296 941 885 624 589 Cash from Cash from Free cash flow(3) Cash from Cash from Free cash flow (3) (2) operations investing operations investing (2) 1HFY15 1HFY16 …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 2QFY16  This represents

  17. Slide 17: Appendix

    Appendix

  18. Slide 18: PAT reconciliation

    PAT reconciliation (RM mn) FY15 FY16 EBITDA 903 962 Margin % 34.7% 35.7% Depreciation and amortisation(1) (455) (415) EBIT 448 548 Margin % 17.2% 20.3% Finance income 38 29 Finance cost (127) (166) Share of post tax results from investments 6 4 PBT 364 415 Tax expense (99) (113) Tax rate % 27% 27% P

  19. Slide 19: Group balance sheet overview

    Group balance sheet overview (RM mn) FY15 FY16 (RM mn) FY15 FY16 Non-current assets 4,260 4,831 Non-current liabilities 3,925 4,225 Property, plant and equipment 1,957 2,193 Payables 676 685 Other non-current assets 2,303 2,638 Borrowings 3,148 3,453 Other non-current liabilities 101 88 Current asse

  20. Slide 20: Debt profile

    Debt profile Total borrowings (RM mn) Details of borrowings Finance lease RM term loan USD term loan  As at 31 July 2015, outstanding principal US dollar term loan stood at US$280.5mn. 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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