Star Media Group Berhad · MYX:STAR
Star Media Group Berhad — Q2 2017 Earnings Presentation
26 slides from Star Media Group Berhad's earnings presentation, August 2017
Slide 1: The Star Media Group
THE STAR MEDIA GROUP Read. Listen. Watch. Think. Be Inspired
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 2 Quarter 2 Business 2017 2017 Group Segments Strategy Highlights Financials financials 3
Slide 4: Key takeaways 2Q17
Key takeaways 2Q17 1. • Challenging environment for the media sector in terms of ad spend • Lower profitability for Print & Digital was partly attributed to start-up costs of 2. dimsum • 3. Turnaround for the Radio segment on the back of the disposal of the 2 stations 4. • Lower number of events for
Slide 5: Initiatives to mitigate challenges
Initiatives to mitigate challenges Cost Saving Measures • Ad spend recovery • Lean soft despite operating improved structure Challenging macroeconomic environment for the numbers • Disciplined media sector cost control • Advertisers adopted a wait-and- • Improved see attitude efficiencies 5
Slide 6: YTD June '16 / '17; total adex, all media
YTD June ’16 / ’17; total adex, all media Medium share (%) YTD June 2016 (ex. Pay TV & Astro Radio) YTD June 2017 (ex. Pay TV & Astro Radio) Cinema 2% In-Store Media Radio 3% 2% Cinema 1% Magazines Radio 3% In-Store Media 1% 2% Magazines 1% FTA Television FTA Television 40% 45% Newspapers 53% Newspa
Slide 7: YTD June '16 / '17; English paper adex
YTD June ‘16 / ‘17; English paper adex Total English newspapers Adex, Peninsular Malaysia YTD Dec (%) YTD 2017 YTD 2016 Media 4, 4% Media 3, 2% Media 3, 2% Media 4, 3% Media 2, 8% Media 2, 6% Media 1, 24% Media 1, 24% The Star 65% The Star, 61% Source: Nielsen AIS. Numbers have not taken into consid
Slide 8: YTD classified & display market share
YTD classified & display market share English newspapers in Peninsular Malaysia; YTD June 2017 (%) 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% The Star Media 1 Media 2 Media 3 Classifieds Mkt. Share (%) Display Mkt. Share (%) Source: Nielsen AIS Star has dominance in the display category 8
Slide 9: 2Q17 highlights
2Q17 highlights • A successful Women do Wonders event - WOW • Ipoh Star Walk with 15,000 participants 9
Slide 10: 2Q17 highlights
2Q17 highlights • Starproperty.my Fair • A successful Fit For Life campaign 10
Slide 11: 2Q17 highlights
2Q17 highlights • Ride for Malaysia • # Anak Anak Malaysia 11
Slide 12: TSOL, June '16 – June '17
TSOL, June ‘16 – June’ 17 English News Portals Performance June’16 - June’17 (Combined PC & Mobile) Total Unique Visitors (‘000) 4,000 3,000 3,187 2,918 2,000 1,134 1,000 510 248 0 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 The Star Online MALAYSIAKINI
Slide 13: Star Biz, June '16 – June '17
Star Biz, June ‘16 – June ‘17 The Star Online Business versus Competitors; June’16- June’17 (Combined PC & Mobile) Total Unique Visitors (000) 1,300 1,000 860 700 555 388 400 355 100 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 THESTAR.COM.MY Business Ya
Slide 14: Agenda
Agenda 11 2 3 4 Quarter 2 Quarter 2 Business 2017 2017 Group Segments Strategy Highlights Financials financials 14
Slide 15: Performance of Star Media Group
Performance of Star Media Group 2Q17 2Q16 Var 1Q17 Var (%) 1H17 1H16 Var (RM million) (%) 2Q17 v (%) 1Q17 Revenue 129.38 165.54 (21.8%) 131.13 (1.3%) 260.51 323.44 (19.5%) EBITDA 6.82 22.71 (70.0%) 9.90 (31.1%) 16.72 51.03 (67.2%) PBT (excluding 0.57 18.81 (97.0%) 6.43 (91.1%) 7.0 42.04 (83.3%) extr
Slide 16: Agenda
Agenda 11 2 3 4 Quarter 2 Quarter 2 Business 2017 2017 Group Segments Strategy Highlights Financials financials 16
Slide 17: 2Q17 Business Segments
2Q17 Business Segments 1. • Print and Digital 2. • Event, Exhibition, Interior and Thematic 3. • Radio 17
Slide 18: Performance of Star Media Group: Print and Digital Segment
Performance of Star Media Group Print and Digital Segment 2Q17 2Q16 Var 1Q17 Var (%) 1H17 1H16 Var (RM (%) 2Q17 v (%) million) 1Q17 Revenue 111.34 143.25 (22.3%) 114.2 (2.5%) 225.55 285.16 (20.9%) EBITDA 9.04 25.07 (63.9%) 11.54 (21.7%) 20.58 56.73 (63.7%) PBT 2.99 23.02 (87.0%) 8.10 (63.1%) 11.09 5
Slide 19: Breakdown of revenue 2Q17
Breakdown of revenue 2Q17 RM Mil Q-on-Q and H-on-H comparison 300 2Q 2017 revenue RM111.34m vs RM 143.25m in 2Q2016 250 6.32 200 14.62 150 100 90.40 50 0 1Q 2017 2Q 2017 1H 2017 1H 2016 Advertising Circulation Digital Advertising Circulation Digital 19
Slide 20: 2Q17 Business Segments
2Q17 Business Segments 1. • Print and Digital 2. • Event, Exhibition, Interior and Thematic 3. • Radio 20
Slide 21: Performance of I.Star Ideas Factory
Performance of I.Star Ideas Factory 2Q17 2Q16 Var 1Q17 Var (%) 1H17 1H16 Var (RM million) (%) 2Q17 v (%) 1Q17 Revenue 3.59 6.61 (45.7%) 2.16 66% 5.75 7.8 (26.3%) EBITDA/ (0.14) 1.36 (>100%) (0.01) (>100%) (0.15) 0.27 (>100%) (LBITDA) PBT/LBT 0.10 1.35 (92.6%) (0.05) 300% 0.05 0.28 (82.1%) EBITDA/ (3
Slide 22: 2Q17 Business Segments
2Q17 Business Segments 1. • Print and Digital 2. • Event, Exhibition, Interior and Thematic 3. • Radio 22
Slide 23: Performance of Radio Operations
Performance of Radio Operations Star Media Radio Group 2Q17 2Q16 Var 1Q17 Var (%) 1H17 1H16 Var (RM million) (%) 2Q17 v (%) 1Q17 Revenue 10.0 9.94 0.6% 9.91 0.9% 19.91 20.89 (4.6%) (LBITDA)/EBITDA 0.52 (1.58) 132.9% 1.13 (54.0%) 1.65 (1.69) 197.6% (LBT)/PBT 0.55 (1.89) 129.1% 1.07 (48.6%) 1.62 (2.25
Slide 24: Agenda
Agenda 11 2 3 4 Quarter 2 Quarter 2 Business 2017 2017 Group Segments Strategy Highlights Financials financials 24
Slide 25: Strategy
Strategy • Prudent cost management and internal restructuring 1. 2. • Focus on digital expansion through acquisition and organic growth 3. • Rationalization of loss making businesses like LiTV 4. • Expansion of simulcast titles of the best Asian contents for dimsum 25
Slide 26: Download our presentation
Download our presentation http://starmediagroup.my/ or http://starmediagroup.my/investors- relations/presentations/ 26
Star Media Group Berhad — Q2 2017 Earnings Presentation on 6ix