Star Media Group Berhad · MYX:STAR
Star Media Group Berhad — Q1 2016 Earnings Presentation
38 slides from Star Media Group Berhad's earnings presentation, May 30, 2016
Slide 1: Star Media Group Analyst Briefing
STAR MEDIA GROUP Read. Listen. Watch. Think. Be Inspired Analyst Briefing Monday, 30 May 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 1 Quarter 1 Business 1H16 2016 2016 Group Segments Outlook & Highlights Financials financials Strategy 3
Slide 4: 1Q16 Highlights
1Q16 Highlights 1. • Headwinds on top and bottom line in 1Q16 • Cityneon a catalyst for growth 2. • Seasonal factors in 1Q & continued cautious stance by 3. advertisers 4. • Investing in new digital business 4
Slide 5: Bright Spots: Building scale
Bright Spots Building scale Marvel Avengers STATION & Transformers Experience Travel exhibit Permanent exhibits Travel exhibit Paris April 2016 Las Vegas June 2016 China Dec 2016 Las Vegas Oct 2016 Travel exhibit Singapore TBC Marvel Avengers exhibits Transformers’ exhibits In conversations with var
Slide 6: Bright Spots: Augmenting Group's growth
Bright Spots Augmenting Group’s growth Marvel Avengers STATION & Transformers Experience • Bulk of earnings namely from ticket sales and merchandise • More exhibits slated for rest of 2016 and 2017 • Strong pipeline of movies for both franchises till 2020 • High barriers to entry due to IP rights •
Slide 7: Release Calendar
Release Calendar Marvel Avengers Transformers Doctor Strange Nov 2016 Guardians of Galaxy May 2017 June 2017 Transformers 5 Spiderman July 2017 Thor Nov 2017 Black Panther Feb 2018 Avengers Infinity War May 2018 June 2018 Transformers 6 Ant-Man and the Wasp July 2018 Spiderman Dec 2018 Captain Marve
Slide 8: Bright Spots: Extending lead in content
Bright Spots Extending lead in content Online TV initiatives News, Business & Youth Politics Chinese General Lifestyle & Entertainment Entertainment Restructuring initiatives Work-in-progress • Expected finalisation by 4Q 2016 8
Slide 9: Bright Spots: Industry adex
Bright Spots Industry adex No. 1 for advertisers MoM: -7.5% Maintains lead position despite dip in industry adex. (April vs Mar 2016) YTD April 2016: -7.3% Note: excl. Pay TV and Astro radio stations YTD YTD Var Var (RM mn) 2016 2015 (RM mn) (%) YTD April 2016 2% 3% The Star 306 339 -34 (9.9%) 6% NS
Slide 10: Adex dips
Adex dips Ad spend by medium share (%) YTD 2016 60.00% 55.6% 50.00% 40.00% Share % 37.5% 30.00% 53.4% 20.00% 38.7% 10.00% 2.6% 2.3% 2.7% 2.2% 1.5% 1.7% 1.1% 0.7% 0.00% FTA Television Newspapers Magazines Radio Cinema In-Store Media YTD 2016 market share YTD 2015 market share Source: Nielsen AIS. Num
Slide 11: Highlights in 1Q 2016: Readership figures
Highlights in 1Q 2016 Readership figures for The Star 2015 2014 Increase Read yesterday 1,410,000* 1,054,000 33.8% Read past week 1,691,000 1,432,000 18.1% *2015’s figure has surpassed the previous high of 1,290,000 in 2012 Source: Nielsen The Star is still the preferred choice 11
Slide 12: Why is The Star still the preferred choice?
Highlights in 1Q 2016 Why is The Star still the preferred choice? 12
Slide 13: Highlights in 1Q 2016: WAN-Ifra Media Awards
Highlights in 1Q 2016 WAN-Ifra Media Awards • Won Silver in Best in Editorial Content Newspaper feature article: R.AGE – The Curse of Serawan • Won bronze in Breaking News Article: Visa Discord Award winning stories 13
Slide 14: Highlights in 1Q 2016: e-paper collaboration
Highlights in 1Q 2016 8 March 2016 e-paper collaboration in East Malaysia 16 March 2016 Star Property Award Special e-paper packages to Sarawak and Sabah 14
Slide 15: Highlights in 1Q 2016: Power Talk Series
Highlights in 1Q 2016 Nestle CEO Alois Hofbauer CIMB Group Chairman Datuk Seri Nazir Tun Razak Sunway Chairman Tan Sri Jeffrey Cheah Power Talk Series – High Profile Speakers 15
Slide 16: Interesting and exclusive reporting attracts readers
Highlights in 1Q 2016 Interesting and exclusive reporting attracts readers which Attracts Advertisers 16
Slide 17: Satisfied clients return with a new campaign
Highlights in 1Q 2016 Satisfied clients returns to Star with a new campaign 17
Slide 18: Star Online Performance Mar '15 - Mar '16
Star Online Performance Mar ‘15 - Mar ‘16 English News Portals Performance Mar‘15-Mar’16 (Combined PC & Mobile) Total Unique Visitors (‘000) 4,000 3,500 3,000 2,504 2,500 2,477 2,000 1,500 1,371 1,000 533 500 456 0 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 M
Slide 19: Star Biz Performance, Mar '15 - Mar '16
Star Biz Performance, Mar ‘15 - Mar ‘16 The Star Online Business vs Competitors Dec‘15-Dec’16 (Combined PC & Mobile) Total Unique Visitors (000) 1,000 900 846 800 700 691 600 500 400 300 296 200 260 100 0 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 THES
Slide 20: Agenda
Agenda 11 2 3 4 Quarter 1 Quarter 1 Business 1H16 2016 2016 Group Segments Outlook & Highlights Financials financials Strategy 20
Slide 21: Performance of Star Media Group Berhad
Performance of Star Media Group Berhad 1Q16 1Q15 Variance 4Q15 (RM million) (%) Revenue 198.73 217.43 (8.6%) 280.77 EBITDA 28.99 41.03 (29.3%) 59.38 PBT 22.38 37.60 (40.5%) 60.34 EBITDA Margin 14.6% 18.9% - 21.1% PBT Margin 11.3% 17.3% - 21.5% Lower revenue from the Group’s business segments particu
Slide 22: Agenda
Agenda 11 2 3 4 Quarter 1 Quarter 1 Business 1H16 2016 2016 Group Segments Outlook & Highlights Financials financials Strategy 22
Slide 23: 1Q16 Business Segments
1Q16 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 23
Slide 24: Print and Digital Segment Performance
Performance of Star Media Group Berhad Print and Digital Segment 1Q16 1Q15 Variance 4Q15 (RM million) (%) Revenue 141.91 162.60 (12.7%) 161.88 EBITDA 31.66 45.51 (30.4%) 47.97 PBT 27.16 44.44 (38.9%) 51.70 EBITDA Margin 22.3% 28.0% - 29.6% PBT Margin 19.1% 27.3% - 31.9% Economic uncertainties and po
Slide 25: Breakdown of Revenue
Breakdown of Revenue Q-on-Q comparison 1Q 2016 Revenue RM141.91m vs RM162.60m in 1Q2015 RM ‘mil Qtr on Qtr Comparison 1Q 2016 180 160 5.27 4% 19.06 140 5.29 13% 17.98 120 100 80 138.27 83% 60 118.63 40 20 Advertising Circulation Digital 0 1Q 2016 1Q 2015 Decline in Newspaper Adex lead to lower Ad re
Slide 26: 1Q16 Business Segments
1Q16 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 26
Slide 27: Performance of I.Star Ideas Factory
Performance of I.Star Ideas Factory 1Q16 1Q15 Variance 4Q15 (RM million) (%) Revenue 1.19 3.47 (65.7%) 10.55 (LBITDA)/EBITDA (1.09) (0.55) (98.2%) 4.15 (LBT)/PBT (1.07) (0.57) (87.7%) 4.15 (LBITDA)/EBITDA Margin (91.6%) (15.9)% - 39.3% (LBT)/PBT Margin (89.9%) (16.4)% - 39.3% Due to poor consumer se
Slide 28: Performance of Cityneon Holdings Limited
Performance of Cityneon Holdings Limited 1Q16 1Q15 Variance 4Q15 (SGD million) (%) Revenue 13.5 12.95 4.2% 31.95 EBITDA/ 0.29 (1.49) 119.5% 3.15 (LBITDA) PBT/(LBT) (0.31) (1.64) 81.1% 2.56 EBITDA/ 2.15% (11.5)% - 9.9% (LBITDA) Margin PBT/(LBT) Margin (2.3%) (12.7)% - 8.0% Higher revenue from project
Slide 29: 1Q16 Business Segments
1Q16 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 29
Slide 30: Performance of Li TV Holdings Limited
Performance of Li TV Holdings Limited 1Q16 1Q15 Variance 4Q15 (USD million) (%) Revenue 0.48 0.78 (38.5%) 0.87 (LBITDA) (0.47) (0.45) (4.4%) (0.53) (LBT) (0.48) (0.44) (9.1%) (0.56) (LBITDA) Margin (97.9%) (57.7)% - (60.9)% (LBT) Margin (100%) (56.4)% - (64.4)% Lower distribution revenue 30
Slide 31: 1Q16 Business Segments
1Q16 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 31
Slide 32: Performance of Radio Operations
Performance of Radio Operations Star Media Radio Group 1Q16 1Q15 Variance 4Q15 (RM million) (%) Revenue 10.95 11.80 (7.2%) 11.65 (LBITDA)/EBITDA (0.11) 1.10 (110.0%) (0.88) (LBT)/PBT (0.36) 0.77 (146.8%) (0.83) (excluding impairment) (LBITDA)/EBITDA Margin (1.0%) 9.3% - (7.6)% (LBT)/PBT Margin (3.3%
Slide 33: Agenda
Agenda 11 2 3 4 Quarter 1 Quarter 1 Business 1H16 2016 2016 Group Segments Outlook & Highlights Financials financials Strategy 33
Slide 34: Media Outlook
Media Outlook • Possible uptick in ad spend prior to Hari Raya/Euro 1. 2. • Slow adaptation to GST and rising costs of living • Expect continued measured ad buys and perhaps gain 3. some traction towards year end 34
Slide 35: Updates: Cityneon
Updates Cityneon • Why did SMG via Laviani dispose off shares to China Media Capital (CMC) Holdings and other investors? o Institutionalise its investor base and increase trading liquidity. o CMC Holdings is a VC company which invest in growth capital stocks and media and entertainment sectors. CMC
Slide 36: Updates: Radio and Life Inspired TV
Updates Radio • When will the restructuring plans be completed? o Star is still exploring various restructuring options such as JV or outright disposal. o Auto play mode without Radio DJs will lower operational cost. o Targeted by 4Q 2016. Life Inspired TV • What are the plans for Life Inspired TV?
Slide 37: Download our presentation
Download our presentation http://starmediagroup.my/ or http://starmediagroup.my/investors- relations/presentations/ 37
Slide 38: Thank You
THANK YOU THE STAR MEDIA GROUP 38
Star Media Group Berhad — Q1 2016 Earnings Presentation on 6ix