Media Chinese International Ltd · HKEX:685
Media Chinese International — FY2018/19 Earnings Presentation
40 slides from Media Chinese International's earnings presentation, May 29, 2019
Slide 1: Annual Results 2018/19 Presentation to Analysts
Media Chinese International Limited Annual Results 2018/19 Presentation to Analysts May 2019 Stock Code: (Malaysia) 5090 ; (Hong Kong) 685
Slide 2: Agenda
Agenda (1) Performance Review Market Highlights Financial Performance (unaudited) (2) Strategic Update (3) Outlook 1
Slide 3: (1) Performance Review – Market Highlights
Agenda (1) Performance Review Market Highlights 2
Slide 4: Market Share in Peninsular Malaysia and Hong Kong
Market Share in Peninsular Malaysia and Hong Kong Penisular Malaysia Period from 1 July 2017 to 30 June 2018 Chinese Newspapers Readership Ranking in Malaysia - Sin Chew Daily 869,000 No. 1 - China Press 779,000 No. 2 - Guang Ming Daily 178,000 No. 3 - Nanyang Siang Pau 53,000 with PMEB focus SUB TO
Slide 5: Adex for April 2018 to March 2019 in Malaysia
Adex for April 2018 to March 2019 in Malaysia YTD Adex (Apr’18 to Mar’19) Total Adex (RM) Radio Cinema 3.6% 1.7% In-store Newspapers : 2,119m Magazines media 22.0% 0.4% Magazines : 53m 0.7% TV (FTA) Newspapers 22.8% TV (FTV) : 2,736m 17.6% Pay TV : 6,401m Radio : 432m 27.7% In-store media : 84m Pay
Slide 6: Total Newspapers Adex in Malaysia
Total Newspapers Adex in Malaysia -21.5% -16.9% -28.0% 1,200 900 In RM ‘million 600 -27.8% 300 0 Chinese English Malay Tamil Apr'18-Mar'19 Apr'17-Mar'18 Chinese English Malay Tamil Total (In RM 'm) (In RM 'm) (In RM 'm) (In RM 'm) (In RM 'm) Apr'18 - Mar'19 738.8 821.7 546.7 11.5 2,118.7 Apr'17 - Ma
Slide 7: Share of Chinese Newspapers Advertising Expenditure In Malaysia
Share of Chinese Newspapers Advertising Expenditure In Malaysia For Apr-18 to Mar-19 NEWSPAPERS ADEX Others - West ENG Newspaper Malaysia 38.8% 3.3% MCIL Group 24.7% CHN Newspaper 34.9% Others - East BM Newspaper Malaysia 25.8% 6.9% Tamil Newspaper 0.5% Adex for Total Newspapers : RM2,119 million Ch
Slide 8: Adex for April 2018 to March 2019 in Hong Kong
Adex for April 2018 to March 2019 in Hong Kong YTD Adex (Apr’18 to Mar’19) Total Adex (HKD) Newspapers : 27,940m Others & 6.5% MTR Magazines : 4,699m 10.3% Newspapers 26.1% TV : 35,151m Desktop & Mobile Radio : 4,491m 22.1% Magazines Desktop & Mobile : 23,652m 6.2% 4.4% Others & MTR : 11,017m TV Rad
Slide 9: (1) Performance Review – Financial Performance
Agenda (1) Performance Review Financial Performance (unaudited) 8
Slide 10: Group Results Summary
Group Results Summary Q4 Q4 YTD YTD US$ ’million +/(-) +/(-) FY2018/19 FY2017/18 FY2018/19 FY2017/18 Turnover 54.3 63.5 -14.6% 285.6 285.0 +0.2% Expenses (57.4) (62.8) +8.6% (282.2) (276.8) -2.0% Impairment losses (18.0) (25.9) +30.5% (18.0) (25.9) +30.5% (LBT)/PBT (18.8) (20.2) +6.8% (6.5) (6.9) +4
Slide 11: Currency Impact
Currency Impact Q4 Q4 FY2018/19 FY2017/18 Exchange Rate Changes: - US$/RM +4.2% -11.7% - US$/C$ +5.2% -4.5% Currency Impact (US$ ’million) - Turnover -1.5 +4.7 - Profit Before Income Tax +1.0 +0.1 10
Slide 12: Segment Results
Segment Results Turnover (US$’000) FY 2018/19 FY 2017/18 Variance (%) Malaysia & other SEA countries 129,906 142,848 -9.1% Hong Kong, Taiwan, PRC & North America 64,051 67,245 -4.7% Travel and travel related services 91,603 74,870 +22.3% Total Turnover 285,560 284,963 +0.2% PBT/(LBT) (US$’000) FY 20
Slide 13: Segment Results – Malaysia & other SEA countries (Q4)
Segment Results – Malaysia & other SEA countries PBT/(LBT) (US$’000) Q4 Q4 FY 2018/19 FY 2017/18 Variance (%) Loss before income tax* (16,254) (19,000) +14.5% Add back:- Prov. for impairment of goodwill 15,227 20,709 +26.5% PPE & spare parts written off 2,865 40 -7062.5% Prov. For impairment of PPE
Slide 14: Segment Results – Malaysia & other SEA countries
Segment Results – Malaysia & other SEA countries PBT/(LBT) (US$’000) FY 2018/19 FY 2017/18 Variance (%) Loss before income tax* (2,215) (2,959) +25.1% Add back:- Prov. for impairment of goodwill 15,227 20,709 +26.5% PPE & spare parts written off 2,865 40 -7062.5% Prov. For impairment of PPE 2,750 5,
Slide 15: Financial Position
Financial Position As of 31 March (US$ million) 2019 2018 Total assets 249.6 331.8 Net debt - Debt (19.9) (68.4) - Cash and cash equivalents & short-term bank deposits 75.2 120.2 Net Cash 55.3 51.8 Shareholders Funds 167.8 197.7 Net assets per share (US cents) 9.94 11.72 Net gearing ratio (Net debt
Slide 16: Dividends
Dividends FYE 2019 FYE 2018 FYE 2017 First Interim Dividend (US cents) 0.180 0.250 0.360 Second Interim Dividend (US cents) 0.100 0.180 0.360 Total Dividend (US cents) 0.280 0.430 0.720 Dividend Pay-out Ratio (as a % of PATAMI) 70% 50% 80% Share Price as at 31 March RM0.22 RM0.37 RM0.64 Dividend Yie
Slide 17: Share Price & NAV per Share (in RM)
Share Price & NAV per Share (in RM) 0.7 0.6 0.5 (before goodwill impairment) 0.4432 0.4 RM 0.4498 0.4567 0.4537 0.4060 0.3 (after goodwill impairment) 0.2 0.1 0.0 Jun-18 Sep-18 Dec-18 Mar-19 -0.1 NAV per share NAV per share (before goodwill impairment) Share Price (month-end closing) 16
Slide 18: (2) Strategic Update
Agenda (2) Strategic Update 17
Slide 19: Strategic Update – Malaysia: Digital First
Strategic Update – Malaysia Introduction of “Digital First” Rolled out “Digital First” transformation program in February 2019. Enable a convergence of both print and digital editorial operations, and allow faster and more convenient ways for content to be shared and accessed by readers. Aim t
Slide 20: Sin Chew Daily Editorial Content
Strategic Update – Malaysia (cont’d) Sin Chew Daily Editorial Content Introduced specific topic features:- I.e. WE, Seeking Truth, Warm Stories, Health and Wellness, Education, Lifestyle and Personal Wealth Management in both print and digital platforms, to provide relevant tips and industry trends,
Slide 21: Event Business
Strategic Update – Malaysia (cont’d) Event Business The Group organises various activities, exhibitions and awards such as “Sin Chew Education Awards”, “Malaysia Health and Wellness Brand Awards”, “Sin Chew Business Excellence Awards” and Nanyang Siang Pau - “Golden Eagle Award”, etc. Sin Chew Busin
Slide 22: Pocketimes Online Video Portal
Strategic Update – Malaysia (cont’d) Pocketimes Online Video Portal Attained highest video views of 9.7 million monthly in April 2019. Extended its business model by creating more offerings and marketing solutions via our expertise in storytelling. Launched extensive live streaming election program,
Slide 23: China Press Regional Sub-sites
Strategic Update – Malaysia (cont’d) China Press Regional Sub-sites Johore sub-site: East Coast sub-site: Launched in March 2016 Launched in Sept 2018 KL sub-site: Northern sub-site: Launched in August 2018 Launched in Dec 2018 22
Slide 24: Daily Newscast and Talk Show
Strategic Update – Malaysia (cont’d) Daily Newscast Talk Show Daily newscast was launched since March 2018. Averagely attained 100,000 video views daily after its launch. Continue to attract more advertisers come in as Presenter sponsor. China Press studio set up completed in April 2019. First serie
Slide 25: MCIL Malaysian Operations Digital Metrics
Strategic Update – Malaysia (cont’d) MCIL Malaysian Operations, total ..... 15.7 million Monthly Unique Visitors 246.4 million Monthly Page View 9.7 million Monthly Video View 4.31 million Facebook Follower Sources: Google Analytics as at April 2019 24
Slide 26: Hong Kong – Ming Pao Education Publications
Strategic Update – Hong Kong 1) Ming Pao Education Publications • Newly published “GIFTED Education Supplement” in May 2019, published “STEM Education Supplement” and “HK 18 Districts Primary STEM Schools” in Oct 2018. • To be awarded the project from “The association of heads of primary schools The
Slide 27: Ming Pao Education Publications (cont'd)
Strategic Update – Hong Kong (cont’d) 1) Ming Pao Education Publications • Launched “Deriving Stars Easily Series 奪星易系列” educational reference books for senior secondary school students to tackle with Hong Kong Diploma of Secondary Education Examination (HKDSE). Published subjects include Liberal St
Slide 28: Ming Pao Education Publications (cont'd)
Strategic Update – Hong Kong (cont’d) 1) Ming Pao Education Publications • Funded by the “Fung Yiu King Charitable Foundation”, co-operated with “The Hong Kong Jockey Club Centre for Suicide Research and Prevention (CSRP)” and “The Comfort Care Concern Group” to publish “Life Education learning and
Slide 29: Hong Kong – Digital Performance (User)
Strategic Update – Hong Kong (cont’d) 2) Digital Performance (User) According to market currency comScore in January 2019 report, we have recorded -19% and +4% of users for desktop and mobile sites respectively. When we further looked on entertainment platform (ol.mingpao.com and mpdeluxe.mingpao.co
Slide 30: Digital Development (WAW Creation)
Strategic Update – Hong Kong (cont’d) 2) Digital Development (WAW Creation) WAW Creation, a creative arm of Ming Pao Newspapers Limited, was formed to provide a diversify array of professional services in content marketing to the advertising clients. 29
Slide 31: Digital Development (Influencers)
Strategic Update – Hong Kong (cont’d) 3) Digital Development (Influencers) Started building Ming Pao’s own influencers so as to extend Ming Pao’s digital platforms and social media coverage since Nov 2018. 30
Slide 32: Technology Update (E-Paper News App)
Strategic Update – Hong Kong (cont’d) 3) Technology Update (E-Paper News App) New E-paper News App was launched. The App allows subscribers to read the newspapers in a full image mode for infographic. Subscribers can also download the pages for offline browsing. 31
Slide 33: Technology Update (MP News Apps)
Strategic Update – Hong Kong (cont’d) 3) Technology Update (MP News Apps) What's new ... Latest version: 9 Apr 2019 Related daily news Related instant news Related news by Editors Image push notification Native ad push notification Google Firebase integration Inapp tutorial 32
Slide 34: Technology Update (Video Zone)
Strategic Update – Hong Kong (cont’d) 3) Technology Update (Video Zone) News website and apps keep their own video zone for better user experience (UX) consideration 33
Slide 35: Technology Update (Facebook Chatbot)
Strategic Update – Hong Kong (cont’d) 3) Technology Update (Facebook Chatbot) Facebook Page Messenger Inbox 34
Slide 36: Technology Update (Video Widget)
Strategic Update – Hong Kong (cont’d) 3) Technology Update (Video Widget) Video widget implemented to News, Finance, Entertainment websites (desktop), showing latest video clips from Ming Pao. Features ... Preroll video ads Flexible playlist Auto-play, default mute Always on screen Hide /
Slide 37: (3) Outlook
Agenda (3) Outlook 36
Slide 38: Outlook Statement FY 2020
Outlook Statement FY 2020 The Group expects the operating environment for the next financial year to remain challenging. The unsettling trade tension between China and the USA adds to the uncertainty of the global economy and may have an adverse impact on the Group’s performance for the coming year.
Slide 39: Thank You
is Agenda THANK YOU 38
Slide 40: Forward Looking Statements
Forward Looking Statements This presentation includes certain forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Media Chinese International Ltd expects or anticipates will or may occur in the future are forward
Media Chinese International — FY2018/19 Earnings Presentation on 6ix