Star Media Group Berhad · MYX:STAR
Star Media Group Berhad — The Star Media Group Berhad — Q3 2015 Earnings Presentation
37 slides from Star Media Group Berhad's earnings presentation, Nov 24, 2015
Slide 1: Star Media Group Analyst Briefing
STAR MEDIA GROUP Read. Listen. Watch. Think. Be Inspired Analyst Briefing Tuesday, 24 November 2015 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 Media Quarter 3 Quarter 3 Business Outlook 2015 2015 Group Segments 2H15 & Highlights Financials financials Strategy 3
Slide 4: 3Q15 Updates
3Q15 Updates • 28 Aug - Advertising :- Star won two (2) Spark awards held in Singapore. Spark award recognises top media solutions and products across South Asia, Australia and New Zealand. - Star won Best Media Solutions in Print category for the Mountain Dew Neon Campaign - Star Online won bronze
Slide 5: 3Q15 Updates
3Q15 Updates • 10 Sept – Star Media Group new corporate logo • 10 Sept –launched TheStarTV.com 5
Slide 6: 3Q15 Updates
3Q15 Updates • 15 Sept, an alliance with The National Broadcasting Corporation (NBC), a subsidiary of National Multimedia Group of Thailand, to procure news and lifestyle video clips. Drive up content for TheStarTV.com • NBC CEO, Adisak Limprungpatanakit signed the agreement with the Group 6
Slide 7: 3Q15 Updates
3Q15 Updates • 22 Sept - Training :- Leaderonomics won the Gold Award in CSR, named SME Employer of the year for the second consecutive year, won silver awards for excellence in work place well-being and silver for employee engagement at HR excellence award 2015 • 30 Sept - Cityneon:- Completed Righ
Slide 8: 3Q15 Updates
3Q15 Updates • 29-30 Aug : Bersih 4.0 • 16 Sept : Red shirt rally Rallies had a dampening effect during the September period 8
Slide 9: The Ringgit past year's performance
The Ringgit past year’s performance Weakening WeakeningofofRinggit against the Ringgit the USD against the since June 2015 USD since
Slide 10: Adex declines on economic uncertainties
Adex declines on economic uncertainties Ad spend by medium share (%) Total Adex for YTD Sept 2015 2015 has dropped 45.00% by 2.5% or 40.00% RM259m 37.6% compared to Sept 35.00% 33.9% 2014 30.00% Share % 25.00% 22.9% 42.3% 20.00% 15.00% 30.9% 10.00% 20.8% 5.00% 0.9% 0.9% 3.4% 3.3% 0.4% 0.3% 1.3% 1.1%
Slide 11: Newspaper Adex - Qtr by Qtr
Newspaper Adex - Qtr by Qtr Total Adex for Newspaper Adex- Qtr by Qtr 2014/2015 newspaper in 2015 1,400,000,000 has dropped by 15.6% or 1,200,000,000 RM188.6m 1,000,000,000 800,000,000 600,000,000 400,000,000 200,000,000 0 Quarter 1 Quarter 2 Quarter 3 2014 (RM) 2015 (RM) Source: Nielsen AIS. Number
Slide 12: Star's readership has increased
Star’s readership has increased Star's readership has increased 1,400,000 Jul14-June15 1,200,000 Star readership has increased by 14.9% 1,000,000 Sunday Star readership has 800,000 increased by 18.1% 600,000 400,000 200,000 - JUL'13-JUN'14 JUL'14-JUN'15 (Q3'13-Q2'14) (Q3'14-Q2'15) The Star Star Sund
Slide 13: Maintain commanding lead in English Paper circulation
Maintain commanding lead in English Paper circulation Circulation for English papers 400,000 Jan-June 2015 372,242 365,804 Star epaper 350,000 increased by 8.7% 300,000 Star Sunday epaper increased by 8.3% 250,000 365,814 366,727 200,000 150,000 100,000 78,404 69,222 71,561 58,172 50,000 July- Dec 2
Slide 14: Agenda
Agenda 11 2 3 4 Media Quarter 3 Quarter 3 Business Outlook 2015 2015 Group Segments 2H15 & Highlights Financials financials Strategy 14
Slide 15: Performance of Star Media Group Berhad
Performance of Star Media Group Berhad 3Q15 3Q14 Var. 2Q15 Var. 9M15 9M14 Var. (RM million) (3Q15 vs 2Q15) Revenue 254.51 247.18 3.0% 266.31 (4.4)% 738.25 732.85 0.7% EBITDA 34.86 51.32 (32.1)% 48.09 (27.5)% 123.98 140.98 (12.1)% PBT 29.20 46.69 (37.5)% 42.93 (32.0)% 109.73 121.12 (9.4)% VSS Expense
Slide 16: Agenda
Agenda 11 2 3 4 Media Quarter 3 Quarter 3 Business Outlook 2015 2015 Group Segments 2H15 & Highlights Financials financials Strategy 16
Slide 17: 3Q15 Business Segments
3Q15 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 17
Slide 18: Performance of Star Media Group Berhad: Print and Digital Segment
Performance of Star Media Group Berhad Print and Digital Segment 3Q15 3Q14 Var. 2Q15 Var. 9M15 9M14 Var. (RM million) (3Q15 vs 2Q15) Revenue 157.24 175.43 (10.4)% 164.98 (4.7)% 484.82 526.32 (7.9)% EBITDA 40.34 51.44 (21.6)% 45.41 (11.2)% 131.26 130.50 0.6% PBT 35.95 49.07 (26.7)% 39.79 (9.7)% 120.1
Slide 19: Breakdown of Revenue
Breakdown of Revenue Q-on-Q comparison 3Q15 Rev – RM 157.24 vs RM164.98 mn in 2Q15 RM ‘mil Q-on-Q and 9M-on-9M comparison 3Q 2015 Digital 600 Circulation 4% 12% 500 400 300 200 100 0 2Q 2015 3Q 2015 9M 2015 9M 2014 Advertising 84% Advertising Circulation Digital Advertising Circulation Digital Consu
Slide 20: 3Q15 Business Segments
3Q15 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 20
Slide 21: Performance of I.Star Ideas Factory
Performance of I.Star Ideas Factory 3Q15 3Q14 Var. 2Q15 Var. 9M15 9M14 Var. (RM million) (3Q15 vs 2Q15) Revenue 1.31 8.51 (84.6)% 7.93 (83.5)% 12.71 23.9 (46.8)% EBITDA/ (0.36) 4.40 (108.2)% 2.36 (115.3)% 1.45 10.77 (86.5)% (LBITDA) PBT/LBT (0.37) 4.30 (108.6)% 2.33 (115.9)% 1.39 10.43 (86.7)% EBITD
Slide 22: Performance of Cityneon Holdings Limited
Performance of Cityneon Holdings Limited 3Q15 3Q14 Var. 2Q15 Var. 9M15 9M14 Var. (SGD million) (3Q15 vs 2Q15) Revenue 23.85 19.27 23.8% 27.74 (14.0)% 64.54 49.59 30.1% EBITDA/ (0.58) 0.16 (462.5)% 1.15 (150.4)% (0.92) 0.54 (270.4)% (LBITDA) PBT/LBT (1.04) (0.06) (1633.3)% 0.91 (214.3)% (1.77) 0.05 (
Slide 23: 3Q15 Business Segments
3Q15 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 23
Slide 24: Performance of Li TV Holdings Limited
Performance of Li TV Holdings Limited 3Q15 3Q14 Var. 2Q15 Var. 9M15 9M14 Var. (USD million) (3Q15 vs 2Q15) Revenue 0.80 0.75 6.7% 0.60 33.3% 2.18 2.30 (5.2)% (LBITDA) (0.45) (0.54) 16.7% (0.50) 10.0% (1.40) (1.39) (0.7)% LBT (0.50) (0.53) 5.7% (0.52) 3.8% (1.46) (1.44) (1.4)% EBITDA/ (56.3)% (72.0)%
Slide 25: 3Q15 Business Segments
3Q15 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 25
Slide 26: Performance of Radio Operations
Performance of Radio Operations Star Media Radio Group 3Q15 3Q14 Var. 2Q15 Var. 9M15 9M14 Var. (RM million) (3Q15 vs 2Q15) Revenue 12.84 13.38 (4.0)% 12.29 4.5% 36.93 38.49 (4.1)% EBITDA/(LBITDA) (0.01) 1.49 (100.7)% (0.33) 97.0% 0.76 2.58 (70.5)% PBT/(LBT) (0.44) (0.25) (76.0)% (0.54) 18.5% (0.21)
Slide 27: Key takeaways on 3Q15 results
Key takeaways on 3Q15 results • All business segments were affected by poor consumer sentiment which were mainly due to local issues and the weakening Ringgit. • Despite the challenging environment, revenue from non-print sectors (i.e. Cityneon ) increased. Diversification of revenue stream Diversif
Slide 28: Agenda
Agenda 11 2 3 4 Media Quarter 3 Quarter 3 Business Outlook 2015 2015 Group Segments 2H15 & Highlights Financials financials Strategy 28
Slide 29: Media outlook 4Q15 & 2016
Media outlook 4Q15 & 2016 • Expect 4Q15 to be extremely challenging 1. 2. • 2016 is expected to be equally as soft Group should be able to sustain market share 29
Slide 30: Print ad prospects: Still kicking we say
Print ad prospects: Still kicking we say 29 Sept – Nielsen’s report states that traditional advertising format continues to be the most trusted form of paid advertising in Malaysia which are above or consistent with global average. 30
Slide 31: Key Challenges & Transformational Progress
Key Challenges & Transformational Progress CHALLENGES TACTICS Positioning to changing Secular headwinds landscape • Soft economic • Defend market share in environment: weak ad revenue & circulation Ringgit and domestic issues • Leveraging our consumer data/insights • Decline in ad spend & and extend
Slide 32: Strategic Priorities
Strategic Priorities Leveraging on our content and media assets Enhancing effectiveness & creativity of advertising sales such 1. as the Mountain Dew Neon Edition 2. Innovating technology platforms for consumers & advertisers 32
Slide 33: Opportunities
Opportunities Increase audience scale across platforms • Investing in digital media including content, mobile and video to expand audience base Data collection and targeting • Leveraging on our extensive consumer data and extending insights to advertisers to help them with their advertising needs Ev
Slide 34: Strategic Updates: Capital FM and Li TV
Strategic Updates Capital FM Li TV • Acquired remaining 20% at RM1.5m. • With the 100% control, the Group will be able to implement its plans more efficiently • Rational is to have 100% control for strategic reasons and for faster decision • Faster decision making process making process • Enables th
Slide 35: Strategic Updates: Cityneon
Strategic Updates Cityneon • Placement of shares completed and resumption of trading on 11 Nov 2015 • Group now owns 65% of Cityneon through Laviani • Marvel next venue is in Las Vegas together with Transformers 35
Slide 36: See You Soon
SEE YOU SOON 36
Slide 37: Thank You
THANK YOU THE STAR MEDIA GROUP 37
The Star Media Group Berhad — Q3 2015 Earnings Presentation on 6ix