Astro Malaysia Holdings Bhd. · MYX:ASTRO

Astro Malaysia Holdings Bhd — Q3 FY2016 Earnings Presentation

22 slides from Astro Malaysia Holdings Bhd's earnings presentation, Dec 8, 2015

  1. Slide 1: 3rd quarter FY16 results

    3rd quarter FY16 results 8th December 2015

  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 3Q FY16 performance

    Key highlights of 3Q FY16 performance 4.3mn to 4.7mn customers Revenue +5% GROW 62% to 66% HH penetration RM3.88bn → RM4.07bn 47% to 53% viewership share 92% on B.yond STBs Adex +6% RM440mn → RM466mn LEAD Local content continues to drive viewership Launched On Demand service EBITDA +8% RM1.33bn → RM

  4. Slide 4: 3Q FY16 snapshot

    3Q FY16 snapshot Highlights FY15 FY16 Growth TV households (000s)(1) 6,955 7,102 2% TV household penetration(2) 62% 66% 4pp TV household penetration (000s) 4,292 4,696 9% Pay TV households (000s) 3,479 3,534 2% NJOI households (000s) 813 1,163 43% Pay TV gross adds (000s) 307 279 (9%) MAT churn 10%

  5. Slide 5: Key customer metrics highlight our dual-model premium and freemium approach

    Key customer metrics highlight our dual-model premium and freemium market approach Residential customers (000s) ARPU (RM) Churn (%) Pay-TV NJOI 99.0 99.0 99.1 99.3 1,163 9.9% 10.3% 9.9% 10.3% 9.8% 920 1,016 1,071 98.5 9.4% 678 813 98.0 3,486 3,479 3,510 3,505 3,520 3,534 2QFY15 3QFY15 4QFY15 1QFY16

  6. Slide 6: Upselling of value-added products and services remains our focus

    Upselling of value-added products and services remains our focus (000s) (000s) (000s) 61% 62% 61% 60% 59% 58% 831 746 786 51 55 Penetration(1) 679 715 48 636 43 1,877 1,917 1,939 1,915 1,888 1,890 33 37 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Multiro

  7. Slide 7: Maintaining our leadership in content, including local IPs

    Maintaining our leadership in content, including local IPs (1) Strong viewership across vernacular content offerings Pay-TV GEGAR VAGANZA 183 Viewership Share AKADEMI FANTASIA Singing competition for famous Malaysia’s most successful singing veteran singers competition 2 mil viewership 1.7 mil viewe

  8. Slide 8: Setting records in the local film industry

    Setting records in the local film industry Highest ever gross box office collections of RM18 mil Astro Shaw’s Polis Evo is now the no.1 local film of all time, surpassing its other hit The Journey Released on 17 September across 100 screens Starring an award-winning cast: Shaheizy Sam, Zizan Razak &

  9. Slide 9: Driving engagement for our content across multiple segments

    Driving engagement for our content across multiple segments Geng UPSR: Malaysia’s First Interactive UPSR Revision The House: Our First Homegrown Format for Digital Drama Viewing 2.7 MIL 1.4 MIL 1.5 MIL 500k 280k >5m TV CUML REACH QUESTIONS YOUTUBE VIEWS RM300K ANSWERED 2.2 MIL COMBINED VIEWS iTUTOR

  10. Slide 10: Capturing millennials through e-sports

    Capturing millennials through e-sports Broadcasting more live e-Sports Following the Dota 2 Championships which garnered 1.3mil unique viewers, Astro broadcasted another popular online game LIVE – League of Legends 2,300,000 Unique viewers Presentation Title

  11. Slide 11: Personalising the TV viewing experience through On Demand

    Personalising the TV viewing experience through On Demand Catch up on the latest Subscribe and download Browse and purchase great TV shows and movies complete seasons & movies from the library and for free movies, plus exclusive watch them anytime, content anywhere On Demand features Instant access

  12. Slide 12: Go Shop expands into the Chinese market

    Go Shop expands into the Chinese market  Committed to delivering a world-class shopping experience to all Malaysians through a variety of mediums such as TV, phone, e-commerce and m-commerce  Launched the Chinese home shopping channel (Channel 318) on 19 th of October  Key performance metrics for

  13. Slide 13: Year on year revenue growth continues despite challenging market conditions

    Year on year revenue growth continues despite challenging market conditions (2) Total revenue (RM mn) YoY growth 1,349 1,348 1,369 1,374 5% 1,330 1,280 71 80 (14)% 100 89 71 38 25 37 52 79 72 69 81 75 13% 67 62 93 77 73 86 84 0% 81 Other Go Shop Radio TV adex 1,088 1,087 1,094 2% 1,084 1,053 1,083 T

  14. Slide 14: Advertising income underpinned by strong viewership and listenership share

    Advertising income underpinned by strong viewership and listenership share (1) (2) Total Malaysia gross (4) Advertising income (RM mn) YoY growth ADEX (2) (3) Share of Radex Radio listeners (mn) TV Radio Publications 168 168 OVERALL ADEX 161 6% 2 2 150 2 (13%) (1%) 60% 61% 12.9 12.8 149 2 3 136 2 72

  15. Slide 15: Continued cost management to optimise profit growth

    Continued cost management to optimise profit growth Total operating expenditure (RM mn) Content cost as 38% 33% 32% 32% 33% 34% % of TV revenue 1,138 1,121 1,075 1,092 1,070 1,095 111 114 137 125 131 131 123 141 132 134 124 124 415 432 417 428 440 410 490 411 427 395 402 397 2QFY15 3QFY15 4QFY15 1QF

  16. Slide 16: Applying ROI discipline in capex spend

    Applying ROI discipline in capex spend Cash capex (RM mn) Capitalised capex (RM mn) as % of 5% 5% as % of 4% 4% revenue revenue 200 199 13 25 45 25 175 165 60 85 FY15 FY16 90 57  STBs/ODUs are owned by Astro, and are capitalised FY15 FY16  STBs/ODUs are conservatively amortised over 3 years; note

  17. Slide 17: Consistently strong cash generation significantly exceeds PATAMI

    Consistently strong cash generation significantly exceeds PATAMI (RM mn) Free cash flow as % of PATAMI 278% 260% 482 475 1,537 1,544 1,055 1,069 Cash from Cash from Free cash flow(3) Cash from Cash from Free cash flow (3) (2) operations investing operations investing (2) 3QFY15 3QFY16 …enabling sign

  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  The Board of Directors of AMH is pleased to declare a quarterly dividend of 2.75 sen per share in respect to 3QFY16  This represents

  19. Slide 19: Appendix

    Appendix

  20. Slide 20: PAT reconciliation

    PAT reconciliation (RM mn) FY15 FY16 EBITDA 1,331 1,436 Margin % 34% 35% Depreciation and amortisation(1) 675 619 EBIT 656 817 Increase in finance cost is Margin % 17% 20% largely due to unrealised Finance income 45 41 forex losses arising from mark-to-market revaluation Finance cost (186) (313) of

  21. Slide 21: Group balance sheet overview

    Group balance sheet overview (RM mn) FY15 FY16 (RM mn) FY15 FY16 Non-current assets 4,188 4,885 Non-current liabilities 3,861 4,348 Property, plant and equipment 1,855 2,109 Payables 618 649 Other non-current assets 2,333 2,776 Borrowings 3,151 3,616 Other non-current liabilities 92 84 Current asset

  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 October 2015, outstanding principal US dollar term loan stood at US$280.5mn. No principal repayment in Q3. The fifth repayment of USD16.5mn is scheduled to be paid on 8 December 2015 USD t

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