Star Media Group Berhad · MYX:STAR
Star Media Group Berhad — Q2 2016 Earnings Presentation
31 slides from Star Media Group Berhad's earnings presentation, Aug 25, 2016
Slide 1: Analyst Briefing
STAR MEDIA GROUP Read. Listen. Watch. Think. Be Inspired Analyst Briefing Thursday, 25 August 2016 THE STAR MEDIA GROUP
Slide 2: 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 3: Agenda
Agenda 11 2 3 4 Quarter 2 Quarter 2 Business 2H16 2016 2016 Group Segments Outlook Highlights Financials financials 3
Slide 4: 2Q16 Key Takeaways
2Q16 Key Takeways • Strength for 2Q was attributed to Cityneon’s Intellectual Property Rights 1. business; fulfillment of first year’s profit guarantee 2. • Forex gain on deregistration of Excel Corporation 3. • Print ad trends recovered in June; soft in April & May • Strong net cash balance despite
Slide 5: 2Q highlights: Spark Awards 2016
2Q highlights: Spark Awards 2016 5
Slide 6: 2Q highlights: Anugerah Pilihan Online 2016
2Q highlights: Anugerah Pilihan Online 2016 • Won Silver for Best Event by Media Company at recent Spark Award jointly organized by SMG + mStar + Suria FM • 775,161 votes • 360° marketing platform for the sponsors which included print, radio, on- ground, live updates online and TV coverage 6
Slide 7: 2Q highlights: Spark Awards 2016; R.AGE TV
2Q highlights: Spark Awards 2016; R.AGE TV • Gold in the Best Launch/Re-Launch by a Media Owner category with R.AGE TV, a video site for its youth news and lifestyle platform 7
Slide 8: 2Q highlights: Creative adverts
2Q highlights: Creative adverts • Nominations for Wonda Kopi Tarik & Calpis Etika print campaigns 8
Slide 9: 2Q highlights: Recovery in June
2Q highlights: Recovery in June Industry adex Run-up to Hari Raya MoM: +12.3% Stable market share (May vs June 2016) YTD June 2016: -6.3% Note: excl. Pay TV and Astro radio stations Total Adex All Media, All Malaysia (excluding Pay TV and Astro radio stations) (RM mil) Apr-16 May-16 Jun-16 FTA Telev
Slide 10: 2Q highlights: Print adex still dominant
2Q highlights: Print adex still dominant Ad spend by medium share (%) YTD 2016 60.00% 55.7% 50.00% 40.00% Share % 37.2% 30.00% 52.4% 20.00% 40.0% 10.00% 2.6% 2.4% 2.5% 2.3% 1.4% 1.6% 1.1% 0.7% 0.00% FTA Television Newspapers Magazines Radio Cinema In-Store Media YTD 2016 market share YTD 2015 market
Slide 11: Malaysia's No.1 English paid daily
Malaysia’s No.1 English paid daily 11
Slide 12: The Star Online Performance Jun'15 – Jun'16
The Star Online Performance Jun’ 15 – Jun’ 16 English News Portals Performance Jun’15 - Jun’16 (Combined PC & Mobile) Total Unique Visitors (‘000) 4,000 3,500 3,000 2,709 2,500 2,405 2,000 1,500 1,353 1,145 1,000 500 648 0 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16
Slide 13: Star Biz Performance, Jun'15 – Jun'16
Star Biz Performance, Jun’15 – Jun’ 16 The Star Online Business versus Competitors; Jun’15- Jun’16 (Combined PC & Mobile) Total Unique Visitors (000) 1,100 1,000 890 900 800 777 700 600 500 400 300 265 200 243 100 0 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16
Slide 14: Victory Hill Exhibitions
Victory Hill Exhibitions 1. YTD key highlights 2. New developments 3. Business model of permanent sets and travelling sets ie licensing fees, assumption on foot traffic, other sources of income and costs 4. Comment on VHE's recent financial performance 5. Strategies, going forward 14
Slide 15: Agenda
Agenda 11 2 3 4 Quarter 2 Quarter 2 Business 2H16 2016 2016 Group Segments Outlook Highlights Financials financials 15
Slide 16: Performance of Star Media Group Berhad
Performance of Star Media Group Berhad 2Q16 2Q15 Var. 1Q16 Var. 1H16 1H15 Var (RM million) (2Q16vs 1Q16) Revenue 266.54 266.31 0.1% 198.73 34% 465.27 483.74 (3.8%) EBITDA 41.99 48.09 (12.7%) 28.99 45% 70.98 89.12 (20.4%) PBT 58.45 42.93 36.2% 22.38 >100% 80.83 80.53 0.4% EBITDA Margin 15.8% 18.1% -
Slide 17: Agenda
Agenda 11 2 3 4 Quarter 2 Quarter 2 Business 2H16 2016 2016 Group Segments Outlook Highlights Financials financials 17
Slide 18: 2Q16 Business Segments
2Q16 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 18
Slide 19: Performance of Star Media Group Berhad: Print and Digital Segment
Performance of Star Media Group Berhad Print and Digital Segment 2Q16 2Q15 Var. 1Q16 Var. 1H16 1H15 Var. (RM million) (2Q16 vs 1Q16) Revenue 143.25 164.98 (13.2%) 141.91 0.9% 285.16 327.58 (12.9%) EBITDA 25.07 45.41 (44.8%) 31.66 (20.8%) 56.73 90.92 (37.6%) PBT 23.02 39.79 (42.1%) 27.16 (15.2%) 50.1
Slide 20: Breakdown of Revenue
Breakdown of Revenue Q-on-Q comparison 2Q 2016 Revenue RM143.3m vs RM164.98m in 2Q 2015 RM ‘mil Q-on-Q and H-on-H comparison 2Q 2016 350 Digital 6% 300 Circulation 13% 250 200 150 100 Advertising 50 81% 0 1Q 2016 2Q 2016 1H 2016 1H 2015 Advertising Circulation Digital Advertising Circulation Digital
Slide 21: 2Q16 Business Segments
2Q16 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 21
Slide 22: Performance of I.Star Ideas Factory
Performance of I.Star Ideas Factory 2Q16 2Q15 Var. 1Q16 Var. 1H16 1H15 Var. (RM million) (2Q16vs 1Q16) Revenue 6.61 7.93 (16.6%) 1.19 >100% 7.8 11.40 (31.6%) EBITDA 1.36 2.36 (42.4%) (1.09) >100% 0.27 1.81 (85.1%) PBT 1.35 2.33 (42.1%) (1.07) >100% 0.28 1.76 (84.1%) EBITDA Margin 20.6% 29.8% - (91.6
Slide 23: Performance of Cityneon Holdings Limited
Performance of Cityneon Holdings Limited 2Q16 2Q15 Var. 1Q16 Var. 1H16 1H15 Var. (SGD million) (2Q16 vs 1Q16) Revenue 32.82 27.74 18.3% 13.5 >100% 46.32 40.69 13.8% EBITDA/ 6.93 1.15 >100% 0.29 >100% 7.22 (0.34) >100% (LBITDA) PBT/(LBT) 6.03 0.91 >100% (0.31) >100% 5.72 (0.73) >100% EBITDA/ 21.1% 4.
Slide 24: 2Q16 Business Segments
2Q16 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 24
Slide 25: Performance of Li TV Holdings Limited
Performance of Li TV Holdings Limited 2Q16 2Q15 Var. 1Q16 Var. 1H16 1H15 Var. (USD million) (2Q16 vs 1Q16) Revenue 0.61 0.60 1.7% 0.48 27% 1.09 1.38 (21.0%) (LBITDA) (0.58) (0.50) (16.0%) (0.47) (23%) (1.05) (0.95) (12.9%) (LBT) (0.6) (0.52) (15.4%) (0.48) (25%) (1.08) (0.96) (12.5%) (LBITDA) Margin
Slide 26: 2Q16 Business Segments
2Q16 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 26
Slide 27: Performance of Radio Operations
Performance of Radio Operations Star Media Radio Group 2Q16 2Q15 Var. 1Q16 Var. 1H16 1H15 Var. (RM million) (2Q16 vs 1Q16) Revenue 9.94 12.29 (19.1%) 10.95 (9.2)% 20.89 24.09 (13.3%) (LBITDA)/EBITDA (1.58) (0.33) >(100)% (0.11) >(100)% (1.69) 0.77 >(100%) (LBT)/PBT (1.89) (0.54) >(100)% (0.36) >(100
Slide 28: Agenda
Agenda 11 2 3 4 Quarter 2 Quarter 2 Business 2H16 2016 2016 Group Segments Outlook Highlights Financials financials 28
Slide 29: Outlook
Outlook • 2H outlook remains challenging as market sentiment remains 1. cautious due to economic uncertainties and weak commodity prices • Group will continue to enhance its respective media platforms 2. and expand aggressively into digital businesses in video content (TheStarTV) and A.I.M • Cityneo
Slide 30: Download our presentation
Download our presentation http://starmediagroup.my/ or http://starmediagroup.my/investors- relations/presentations/ 30
Slide 31: Thank You
THANK YOU THE STAR MEDIA GROUP 31
Star Media Group Berhad — Q2 2016 Earnings Presentation on 6ix