Astro Malaysia Holdings Bhd. · MYX:ASTRO

Astro Malaysia Holdings Bhd — Q2 FY2015 Earnings Presentation

22 slides from Astro Malaysia Holdings Bhd's earnings presentation, Sep 19, 2014

  1. Slide 1: 2nd quarter FY15 results

    2nd quarter FY15 results 19th September 2014

  2. 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

  3. Slide 3: Key highlights of 1H'FY15 performance

    Key highlights of 1H’FY15 performance 3.7mn to 4.2mn customers Revenue +12% GROW 54% to 60% HH penetration RM2.31bn → RM2.60bn 44% to 47% viewership EBITDA +15% 2014 FIFA World Cup drives no. of RM786mn → RM903mn LEAD viewers to new record high Highest share of listenership since 2005 Adex +7% RM270

  4. Slide 4: 1H'FY15 snapshot — growth strategy continues

    1H’ FY15 snapshot — growth strategy continues Highlights FY14 FY15 Growth TV households (000s)(1) 6,842 6,932 1% TV household penetration(2) 54% 60% 6pp TV household penetration (000s) 3,673 4,164 13% Pay TV households (000s) 3,359 3,486 4% NJOI households (000s) 314 678 116% Pay TV gross adds (000s

  5. Slide 5: Key customer metrics continue to be on track

    Key customer metrics continue to be on track Residential customers (000s) ARPU (RM) Pay-TV NJOI 98.0 97.1 95.6 96.0 526 678 94.9 442 94.2 314 382 264 3,316 3,359 3,402 3,442 3,470 3,486 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 Customers with B.yond STBs (00

  6. Slide 6: Upsell of value-added products and services highlights success of reinvestment strategy

    Upsell of value-added products and services highlights success of reinvestment strategy (000s) (000s) (000s) 64% 61% 60% 58% 60% 61% 636 33 585 532 29 Penetration 468 26 414 1,780 1,877 343 20 1,518 1,611 1,675 16 1,397 13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1Q14 2Q14 3Q14 4Q

  7. Slide 7: Local content continues to drive share of viewership

    Local content continues to drive share of viewership Viewership Share Hari Hari Hari Raya 172 A star-studded fun game show with a Raya theme Evening Edition total 53% Top Mandarin news programme 47% propels AEC channel share to channels Romantic Raya second highest in its category Celebrities couple

  8. Slide 8: 2014 FIFA World Cup, the Best World Cup Ever

    2014 FIFA World Cup, the Best World Cup Ever Subs with Sports Package (Complimentary viewing for World Cup) >1.6mil Football Pass RM100 (One time purchase for all World Cup matches ) >100K 2014 FIFA World Cup: Engagement on all platforms ~400K New App downloads 60K new registrations 30K 35K register

  9. Slide 9: New HD channel offering Bollywood movies launched

    New HD channel offering Bollywood movies launched Target Audience Malays, Hindi Speaking Indians, Bollywood movie buffs CH251 RM5 Launched on 1 Sept 2014 A Bollywood Movie Channel in HD Per Month as A-la-carte channel 4 movies per month, showcasing the latest Hindi movies Dual subtitles which are 3-

  10. Slide 10: Added new studio deal with NBC Universal

    Added new studio deal with NBC Universal Astro Best now has output deals with 4 major studios 80% of the top 20 titles are from the major studios NBC Universal has strong franchises and titles Record shows Astro Best get NBC Universal good purchase result for titles releases at released by major stu

  11. Slide 11: Listen, Read & Play: Expansion of product offerings continuing

    Listen, Read & Play Expansion of product offerings continuing Apokalips X Over 500 podcast programs and >100 First Astro action game based on an digital radio stations including exclusive Astro SHAW produced movie. to Astro stations such as: Arena Radio Happy Dragon 100,000 Whys A new home for sport

  12. Slide 12: Astro is the exclusive TV production services provider at Pinewood Iskandar Malaysia Studios

    Astro is the exclusive TV production services provider at the world-class Pinewood Iskandar Malaysia Studios PIMS offers:  100,000 sq ft of film stages  APSB will be the exclusive provider of  24,000 sq ft of TV studios equipment and services for production of TV  Full range of post production s

  13. Slide 13: Double digit revenue growth with strong value proposition across all segments

    Double digit revenue growth with strong value proposition across all segments (2) Total revenue (RM mn) YoY growth 1,349 12% 1,260 1,254 100 110% 1,217 1,188 74 80 72 9% 1,126 44 69 68 53 93 41 66 64 6% 86 67 49 88 87 64 Other Radio TV adex TV subscription 1,054 1,084 9% 991 996 1,032 972 1QFY14 2QF

  14. Slide 14: Advertising income in line with overall market sentiments

    Advertising income in line with overall market sentiments, growth in TV viewership and radex continues (2) Advertising income (RM mn) YoY growth Share of Radex Radio listeners (mn) TV Radio Others (3) 56% 12.6 168 7% 12.3 55% 155 155 157 2 (3%) 2 3 3 122 72 115 66 64 68 2 2 9% FY14 FY15 FY14 FY15 53

  15. Slide 15: Cost management a key focus to optimise profit growth

    Cost management a key focus to optimise profit growth Total operating expenditure (RM mn) Higher content cost is predominantly due to 31% 32% 32% 32% 31% 38% impact of FIFA World Cup Content cost as % of TV revenue 1,079 1,138 1,020 1,053 1,004 111 941 125 Focused cost control resulted in lower 109

  16. Slide 16: Astro B.yond reinvestment cycle completed; capex peaks in FY15

    Astro B.yond reinvestment cycle completed; capex peaks in FY15 due to investment on transponder capacity Cash capex (RM mn) Capitalised capex (RM mn) as % of 6% 5% as % of 20% 4% revenue revenue 12 2 19 46 453 56 51 112 52 25 FY14 FY15 FY14 FY15  Capitalised capex is significantly lower in 1HFY15 i

  17. Slide 17: Consistently strong free cash generation exceeds PAT

    Consistently strong free cash generation exceeds PAT Free cash flow (RM mn) as % of PAT 254% 235% 317 292 941 830 624 539 Cash from Cash from Free cash flow (3) Cash from Cash from Free cash flow (3) operations investing (2) operations investing (2) FY14 FY15 …enabling significant flexibility on cap

  18. Slide 18: 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  Board of Directors of AMH is pleased to declare a quarterly dividend of 2.25 sen per share for 2QFY15  This represents a 12.5% increa

  19. Slide 19: Appendix

    Appendix

  20. Slide 20: PAT reconciliation

    PAT reconciliation (RM mn) FY14 FY15 EBITDA 785 903 Margin % 33.9% 34.7% Depreciation and amortisation1 (399) (455) EBIT 386 448 Finance income 33 38 Finance cost (132) (127) Share of post tax results from investments 2 6 PBT 289 364 Tax expense (77) (99) Tax rate % 27% 27% PAT 212 266 Margin % 9.2%

  21. Slide 21: Group balance sheet overview

    Group balance sheet overview (RM mn) FY14 FY15 (RM mn) FY14 FY15 Non-current assets 4,145 4,260 Non-current liabilities 4,694 3,925 Property, plant and equipment 2,099 1,957 Payables 1,067 676 Other non-current assets 2,046 2,303 Borrowings 3,503 3,148 Other non-current liabilities 124 101 Current a

  22. Slide 22: Debt profile

    Debt profile Total borrowings (RM mn) Details of borrowings Finance lease RM term loan USD term loan  As at 31 July 2014, outstanding US dollar term loan stood at US$313.5mn. The second principal repayment amounting to USD8.25mn (RM24.9mn) was paid on 9 June 2014 Total borrowings is net of  Fully

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