Astro Malaysia Holdings Bhd. · MYX:ASTRO
Astro Malaysia Holdings Bhd — Q2 FY2017 Earnings Presentation
26 slides from Astro Malaysia Holdings Bhd's earnings presentation, September 2016
Slide 1: 2nd quarter FY17 results
24 quarter FY17 results Go Beyond
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
Slide 3: Key highlights of 1H FY17 performance
Key highlights of 1H FY17 performance 4.6mn to 5.0mn customers Revenue +3% GROW 65% to 69% HH penetration RM2.70bn → RM 2.79bn 1.1mn to 1.5mn NJOI customers EBITDA -6% 94% on B.yond STBs RM962mn → RM903mn LEAD Local content drives viewership 75% to 76% share of TV viewership Adex +10% RM305mn → RM33
Slide 4: 1H FY17 snapshot
1H FY17 snapshot Highlights 1HFY16 1HFY17 Growth TV households (000s)(1) 7,061 7,162 1% TV household penetration(2) 65% 69% 4pp TV household penetration (000s) 4,590 4,974 8% Pay TV households (000s) 3,520 3,493 (1%) NJOI households (000s) 1,071 1,481 38% Pay TV gross adds (000s) 181 166 (8%) MAT ch
Slide 5: Our dual-model market approach is resilient in a challenging operating environment
Our dual-model market approach is resilient in a challenging operating environment Residential customers (000s) ARPU (RM) Churn (%) Pay-TV NJOI 99.0 99.1 99.3 99.3 99.0 99.2 10.9% 1,395 1,481 10.3% 9.8% 10.0% 1,016 1,071 1,163 1,268 9.4% 9.5% 3,505 3,520 3,534 3,550 3,504 3,493 1QFY16 2QFY16 3QFY16
Slide 6: Upselling of value-added products and services remains a key priority
Upselling of value-added products and services remains a key priority (000s) (000s) (000s) 60% 59% 58% 59% 59% 59% 877 903 908 59 62 62 786 831 55 Penetration(1) 746 48 51 1,915 1,888 1,890 1,938 1,939 1,924 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Mu
Slide 7: Our content priorities
Our content priorities Create & Own Winning IPs Create Digital Content Cost Management Differentiated Continuous Going Beyond Malaysia Content Offering Engagement 6 | 2QFY17 results
Slide 8: Our vernacular content & viewership continue to grow
Our vernacular content & viewership continue to grow (1) Pay-TV Underpinned by a focus on signature brands and new IP creation 185 Maharaja Lawak Anugerah Meletop Dia Semanis Honey Evening Edition Thigil S3 channels Mega Akhir Era 68 Astro-branded 4.8mn 4.1mn 2.9mn 271k 108k channels Viewers Viewers
Slide 9: EURO 2016: The best EURO Football ever
EURO 2016:The best EURO Football ever REACH 10 mil Throughout the EURO 2016 Campaign TV VIEWERSHIP 726k Final match: Portugal vs France AOTG 95K Unique Viewers
Slide 10: Leading the way for the Rio Olympics
Leading the way for the Rio Olympics TV Digital Astro Arena – the leading destination for Olympic Games viewing Engaging younger audiences online via Astro Arena 1st ever live Views on the Astro Highest Sports Event Reach streaming for all 21 mil Arena YouTube 12.4 mil channel during the Msians Olym
Slide 11: Go Shop continues to grow from strength to strength
Go Shop continues to grow from strength to strength Malaysia’s first 24 hour Malay (Ch. 118) and Chinese language (Ch. 318) home shopping channels Providing a differentiated shopping experience to Malaysians through TV, phone, e-commerce and m-commerce Key performance metrics for 1H FY17: 463k
Slide 12: Investing and positioning Go Shop for further growth
Investing and positioning Go Shop for further growth To increase LIVE shows : 1 2 LIVE shows per day per channel on average 2 To increase thematic programmes To support the expansion to other language 3 channels – Indian channel 11 | 2QFY17 results
Slide 13: Tribe, our mobile-first OTT product, expands to new shores
Tribe, our mobile-first OTT product, expands to new shores Tribe – our differentiated over-the-top (“OTT”) online video service, launched in its first market of Indonesia in March, via collaboration with XL Axiata Aimed particularly at millennials, Tribe aims to create a regional community of fa
Slide 14: Digitalising our business to offer an enhanced customer experience and to optimise cost structure
Digitalising our business to offer an enhanced customer experience and to optimise cost structure Cloud First Mobile First Insights Built for agility & scale Improve reachability, Always backed by at optimised cost mobility & experience insights & analytics Reach, engagement & UX Revenue & Profits 1
Slide 15: Continuing to drive customer self-serve through digitalisation
Continuing to drive customer self-serve through digitalisation Moving Forward… Enhancing our multi-platform digital Self-serve via digital service and go-to-home experience channels increasing YoY Multi-channel Self Service Self service utilisation New look for website, optimise for mobile, enable r
Slide 16: Targeted digital platform growth to engage new audiences
Targeted digital platform growth to engage new audiences Connecting homes New apps/sites launched in 1HFY17 with OD Connected 395k 44% over PVR base boxes .com.my Migration Data Aurora Management microsite Platform Total shows 522k Mana Naga Viewed 2x growth QoQ App Revamp (per month) UX/UX & Perfor
Slide 17: YoY revenue growth underpinned by Go Shop and Adex
YoY revenue growth underpinned by Go Shop and Adex (2) Total revenue (RM mn) YoY growth 1,402 1,428 3% 1,369 1,374 1,363 1,330 72 73 4% 70 80 74 74 71 38 63 87% 38 64 37 81 78 87 62 75 72 11% 73 87 84 93 99 77 10% Other (1) Go Shop Radio TV adex 1,087 1,094 1,096 1,095 0% 1,083 1,076 TV subscription
Slide 18: Advertising income across segments remain strong
Advertising income across segments remain strong (1) (2) Total Malaysia gross (3) Advertising income (RM mn) YoY growth ADEX YoY growth(2)(5) Share of Radex Radio listeners (mn) TV Radio Publications 12.8 70% 73% 12.6 186 10% OVERALL ADEX 174 1 (48)% (1)% 168 161 2 2 2 150 136 1 87 2 78 1HFY16 1HFY1
Slide 19: Focused cost optimisation in a "double sporting year"
Focused cost optimisation in a “double sporting year” Total operating expenditure (RM mn) Content cost as 33% 39% % of TV revenue 32% 33% 34% 33% 1,121 1,184 1,070 1,095 1,113 1,085 114 118 166 131 131 135 141 139 121 124 124 117 440 406 417 428 436 427 397 411 427 420 406 492 1QFY16 2QFY16 3QFY16 4
Slide 20: Applying ROI discipline in capex spend
Applying ROI discipline in capex spend Cash capex (RM mn) Capitalised capex (RM mn) as % of 4% 3% as % of 4% 2% revenue revenue 118 10 71 16 4 51 1 38 119 41 62 28 FY16 FY17 FY16 FY17 STBs/ODUs are owned by Astro, and are capitalised Revenue growth Expansion Operational efficiencies Capital mainte
Slide 21: Consistently strong cash generation significantly exceeds PATAMI
Consistently strong cash generation significantly exceeds PATAMI… Free cash flow (RM mn) as % of PATAMI 193% 162% 296 240 885 771 589 531 Cash from Cash from Free cash flow (3) Cash from Cash from Free cash flow (3) operations investing (2) operations investing (2) 1HFY16 1HFY17 …enabling significan
Slide 22: 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 3.00 sen per share in respect to 2QFY17 Quarterly divide
Slide 23: Appendix
Appendix
Slide 24: PAT reconciliation
PAT reconciliation (RM mn) FY16 FY17 EBITDA 962 903 Margin % 35.7% 32.4% Depreciation and amortisation(1) (415) (374) EBIT 548 530 Margin % 20.3% 18.9% Finance income 29 39 Finance cost (166) (122) Share of post tax results from investments 4 3 PBT 415 449 Tax expense (113) (124) Tax rate % 27% 28%
Slide 25: Group balance sheet overview
Group balance sheet overview (RM mn) FY16 FY17 (RM mn) FY16 FY17 Non-current assets 4,831 4,578 Non-current liabilities 4,225 3,544 Property, plant and equipment 2,193 1,904 Payables 685 480 Other non-current assets 2,638 2,673 Borrowings 3,453 2,965 Other non-current liabilities 88 99 Current asset
Slide 26: Debt profile
Debt profile Total borrowings (RM mn) Details of borrowings As at 31 July 2016, outstanding principal US dollar term loan stood at Finance lease RM term loan USD term loan US$247.5mn. The sixth principal repayment amounting to USD16.5mn (RM49.8mn) was paid on 8 June 2016 and the next repayment of
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