Star Media Group Berhad · MYX:STAR
Star Media Group Berhad — Q3 2016 Earnings Presentation
47 slides from Star Media Group Berhad's earnings presentation, Nov 23, 2016
Slide 1: Analyst Briefing 23 November 2016
STAR MEDIA GROUP Read. Listen. Watch. Think. Be Inspired Analyst Briefing Wednesday, 23 November 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 3 Quarter 3 Business 2H16 2016 2016 Group Segments Outlook & Highlights Financials financials Strategy 3
Slide 4: 3Q16's dynamics
3Q16’s dynamics 1. • Earnings weighed down by weakness in advertising spend • Weak economic conditions and consumer sentiment 2. • VHE’s contribution is the bright spot for the quarter; turnaround for 3. Cityneon 4. • Disposal of non-performing assets; slated to be completed in 4Q16 • Despite the ob
Slide 5: 3Q highlights - Advertising Collaborations
3Q highlights- Advertising Collaborations 5
Slide 6: 3Q highlights - Win With Words
3Q highlights- Win With Words 6
Slide 7: YTD Sept 2016 highlights - Newspaper adex still the largest
YTD Sept 2016 highlights - Newspaper adex still the largest Ad spend by medium share (%) 60.00% YTD 2016 55.5% 50.00% 40.00% Share % 37.3% 30.00% 52.0% 20.00% 40.4% 10.00% 2.6% 2.5% 2.4% 2.4% 1.4% 1.7% 1.1% 0.8% 0.00% FTA Television Newspapers Magazines Radio Cinema In-Store Media YTD 2016 market sh
Slide 8: The Star Online Performance Oct'15 - Sep'16
The Star Online Performance Oct’ 15 – Sep’ 16 English News Portals Performance Oct’15 - Sep’16 (Combined PC & Mobile) Total Unique Visitors (‘000) 3,000 2,518 2,500 2,445 2,000 1,500 1,286 1,188 1,000 500 394 0 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 The S
Slide 9: Star Biz Performance, Oct'15 - Sep'16
Star Biz Performance, Oct’15 – Sep’16 The Star Online Business versus Competitors; Oct’15- Sep’16 (Combined PC & Mobile) Total Unique Visitors (000) 1,100 1,000 900 888 800 700 726 600 500 400 300 200 210 100 177 0 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 T
Slide 10: Agenda
Agenda 11 2 3 4 Quarter 3 Quarter 3 Business 2H16 2016 2016 Group Segments Outlook & Highlights Financials financials Strategy 10
Slide 11: Performance of Star Media Group Berhad
Performance of Star Media Group Berhad 3Q16 3Q15 Var. 2Q16 Var. 9M16 9M15 Var (RM million) (3Q16vs 2Q16) Revenue 206.50 254.51 (18.9%) 266.54 (22.5%) 671.77 738.25 (9.0%) EBITDA 28.69 34.86 (17.7%) 41.99 (31.7%) 99.67 123.98 (19.6%) PBT 17.86 29.20 (38.8%) 58.45 (69.4%) 98.69 109.73 (10.1%) EBITDA M
Slide 12: Agenda
Agenda 11 2 3 4 Quarter 3 Quarter 3 Business 2H16 2016 2016 Group Segments Outlook & Highlights Financials financials Strategy 12
Slide 13: 3Q16 Business Segments
3Q16 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 13
Slide 14: Performance of Star Media Group Berhad - Print and Digital
Performance of Star Media Group Berhad Print and Digital Segment 3Q16 3Q15 Var. 2Q16 Var. 9M16 9M15 Var. (RM million) (3Q16 vs 2Q16) Revenue 136.11 157.24 (13.4%) 143.25 (5.0%) 421.27 484.82 (13.1%) EBITDA 27.99 40.34 (30.6%) 25.07 11.6% 84.72 131.26 (35.5%) PBT 24.22 35.95 (32.6%) 23.02 5.2% 74.40
Slide 15: Breakdown of Revenue
Breakdown of Revenue Q-on-Q comparison 3Q 2016 Revenue RM 136.1m vs RM157.24m in 3Q 2015 RM ‘mil Q-on-Q and H-on-H comparison 3Q 2016 Digital 600 5% Circulation 500 13% 400 300 200 100 Advertising 81% 0 2Q 2016 3Q 2016 9M 2016 9M 2015 Advertising Circulation Digital Advertising Circulation Digital D
Slide 16: 3Q16 Business Segments
3Q16 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 16
Slide 17: Performance of I.Star Ideas Factory
Performance of I.Star Ideas Factory 3Q16 3Q15 Var. 2Q16 Var. 9M16 9M15 Var. (RM million) (3Q16vs 2Q16) Revenue 1.24 1.31 (5.3%) 6.61 (81.2%) 9.04 12.71 (28.9%) EBITDA/ (0.43) (0.36) (19.4%) 1.36 >(100%) (0.16) 1.45 >(100%) (LBITDA) PBT/LBT (0.49) (0.37) (32.4%) 1.35 >(100%) (0.21) 1.39 >(100%) EBITD
Slide 18: Performance of Cityneon Holdings Limited
Performance of Cityneon Holdings Limited 3Q16 3Q15 Var. 2Q16 Var. 9M16 9M15 Var. (SGD million) (3Q16 vs 2Q16) Revenue 16.69 23.85 (30.0%) 32.82 (49.1%) 63.01 64.54 (2.4%) EBITDA/ 0.50 (0.58) >100% 6.93 (92.8%) 7.72 (0.92) >100% (LBITDA) PBT/(LBT) (0.59) (1.04) 43.3% 6.03 >(100%) 5.13 (1.77) >100% EB
Slide 19: 3Q16 Business Segments
3Q16 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 19
Slide 20: Performance of Li TV Holdings Limited
Performance of Li TV Holdings Limited 3Q16 3Q15 Var. 2Q16 Var. 9M16 9M15 Var. (USD million) (3Q16 vs 2Q16) Revenue 0.68 0.80 (15.0%) 0.61 11.5% 1.77 2.18 (18.8%) (LBITDA) (0.41) (0.45) 8.9% (0.58) 29.3% (1.46) (1.40) (4.3%) (LBT) (0.42) (0.50) 16.0% (0.60) 30.0% (1.50) (1.46) (2.7%) (LBITDA) Margin
Slide 21: 3Q16 Business Segments
3Q16 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 21
Slide 22: Performance of Radio Operations
Performance of Radio Operations Star Media Radio Group 3Q16 3Q15 Var. 2Q16 Var. 9M16 9M15 Var. (RM million) (3Q16 vs 2Q16) Revenue 9.83 12.84 (23.4%) 9.94 (1.1%) 30.72 36.93 (16.8%) (LBITDA)/EBITDA (1.05) (0.01) >(100%) (1.58) 33.5% (2.74) 0.76 >(100%) (LBT)/PBT (1.27) (0.44) >(100%) (1.89) 32.8% (3
Slide 23: Agenda
Agenda 11 2 3 4 Quarter 3 Quarter 3 Business 2H16 2016 2016 Group Segments Outlook & Highlights Financials financials Strategy 23
Slide 24: Outlook
Outlook • Expected improvement in 4Q compared to 3Q; 2017 expected to 1. be subdued with gradual improvement • Cityneon is expected to contribute positively with other 2. exhibitions coming on stream • Continuing with diversification into other media assets – 3. dimsum.my 24
Slide 25: Star New Business
Star New Business • Joining the Star Media Group family in 2016, dimsum is a brand new homegrown Video-on-demand service that provides the best Asian content • dimsum makes it easier for viewers to search and stream Asian content they desire over the Internet without hassle, as it is accessible anyt
Slide 26: Star New Business
Star New Business The logo is inspired by the mandarin characters of dimsum [点心] The word dian [点] means point or click, which symbolize the play button in the logo icon and the mandarin character of xin [心] is transformed into an unique digital box symbol. The icon itself can bring the meaning: sel
Slide 27: content from
Star New Business content from
Slide 28: our unique proposition
Star New Business our unique proposition
Slide 29: Star New Business - Device support
Star New Business Device support Apple devices - iPhone 5 and above, iOS7 or later Android devices - 4.3 and above PCs: Windows 7 and 8 Mac: OSX and above Supported browsers: Chrome 40+, Firefox 36+, Safari 7+ and IE11
Slide 30: dimsum 2.0
Star New Business !L1! dimsum dimsum 2.0 SWART HUB gy | Dec ‘16 tablet compatibility ; Q2 ‘17 Smart TV app
Slide 31: Content line up
Star New Business Content line up
Slide 32: Star New Business
Star New Business SIMULCAST @ cee sibs gan y 4 | CHIBI MARUKO-CHAN HIGH 5 DOCTOR-X 4 RED ALF HIGH 5 fil] 3 75 RAK
Slide 33: Star New Business
Star New Business !L1! dimsum Tribes & Empire : Storm of Prophecy Highest production budget in China Over 300 million RMB (RM185 million) 2 Years Production
Slide 34: Star New Business
Star New Business CHINESE PALADIN 5 NIRVANA IN FIRE LOVE BY DESIGN THE DEVIL GAME LOST? ME TOO ABZ AL (Director’s Cut) 1h ERR Sy AE FMEZ Heit 2EGE CLAIRE Dy to 1 2H°2S Frorae 4 I) V5 y8 ZZ z a a 3 = RIDERS : CATCH TOMORROW KILL ME HEAL ME IT’S ALRIGHT, THIS IS LOVE MY LOVE FROM THE STAR FIFTEEN YEAR
Slide 35: Star New Business
Star New Business VARIETY & SU lah mo te ~~ =
Slide 36: Star New Business
Star New Business = as =Eic) CRAZY STONE WHERE ARE WE GOING, DAD? 1AM A SINGER TOUCH SCREEN CUISINE DUE HI BENG SELB? REKF Ste Tal ASE RUNNING MAN CAN SEE YOUR VOICE —_ FENG SHU’S COOKING CLASS STAY HEALTHY STAY HAPPY BARES KAA WIL ARATE LY
Slide 37: Kids Content
Star New Business @ KIDS CONTENT JLE RE SSS
Slide 38: Star New Business
Star New Business + ie tf X f q . b BODHI and FRIENDS PLEASANT GOAT And BIG PANDA AND LITTLE LOOPY, THE COOKING RK'SHR BIG WOLF series MOLE PRINCESS BAF SRAR AB AE 2 NR MINI COOK MOMO PARADISE LEARNING ABC LEARNING SAN ZI JING RAD BE MOMOX RA °F ABC RELA =FB
Slide 39: Star New Business
Star New Business
Slide 40: Star New Business
Star New Business ‘ ROOF OF THE WORLD MYSTERIOUS XI XIA CONFUCIUS TEA Hah HA A SS 4LF #, ARMAS WHEN THE LOUVRE AND THE HANDICRAFT IN POETIC LIFE : HAND MADE MAGNIFICENT QINGHAI FORBIDDEN CITY COME TOGETHER CHINA IN CHINA KEE 4 Be SP. BAER
Slide 41: Star New Business
Star New Business
Slide 42: Star New Business
Star New Business
Slide 43: Star New Business
Star New Business
Slide 44: Star New Business
Star New Business MASQUERADE An ra BLACK NIBHT
Slide 45: Star New Business
Star New Business !L1! dimsum “ar Media to launch first homegrown sian-exclusive OTT platform THEEDGE MALAYSIA Kumpulan Media Star Lancar Produk Baharu '‘Dimsum’ [xorre=snesewei ; _ | rer eee HT RSC RS RAE HAS anecansennanee arenas al
Slide 46: Download our presentation
Download our presentation http://starmediagroup.my/ or http://starmediagroup.my/investors- relations/presentations/ 46
Slide 47: Thank You
THANK YOU THE STAR MEDIA GROUP 47
Star Media Group Berhad — Q3 2016 Earnings Presentation on 6ix