Astro Malaysia Holdings Bhd. · MYX:ASTRO

Astro Malaysia Holdings Bhd — Q2 FY2014 Earnings Presentation

19 slides from Astro Malaysia Holdings Bhd's earnings presentation, Sep 11, 2013

  1. Slide 1: 2nd quarter FY14 results

    2nd quarter FY14 results 11th September 2013

  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 H1'FY14 performance

    Key highlights of H1’FY14 performance 49% to 54% Revenue +13% GROW HH penetration RM2.06bn to RM2.31bn 74% on B.yond STBs, 61% on HD Highest ever eQ score of 79 Launched Family HD, Chuen Min and EBITDA +12% LEAD RM700mn to RM786mn Chuen Min HD packs RM91.8 to RM94.9 ARPU 26% to 30% TV adex Adex +15%

  4. Slide 4: H1'FY14 snapshot — executing on growth strategy

    H1’FY14 snapshot — executing on growth strategy Highlights FY13 FY14 Growth TV households (000s)(1) 6,657 6,842 3% TV household penetration(2) 49% 54% 5pp TV household penetration (000s) 3,257 3,673 13% Pay TV households (000s) 3,166 3,359 6% NJOI households (000s) 91 314 245% Pay TV gross adds (000

  5. Slide 5: Customer and ARPU growth continues, with increased momentum on Astro B.yond STB swap

    Customer and ARPU growth continues, with increased momentum on Astro B.yond STB swap Residential customers (000s) ARPU (RM) Pay-TV NJOI 94.2 94.9 264 314 91 209 93.2 14 132 91.8 92.3 3,359 90.3 3,166 3,213 3,276 3,316 3,108 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

  6. Slide 6: Upsell of value-added products and services highlights ongoing success of B.yond swapout

    Upsell of value-added products and services highlights ongoing success of Astro B.yond swapout strategy (000s) (000s) (000s) 67% 68% 65% 64% 64% 61% Penetration 414 16 343 13 299 11 1,397 1,518 9 926 1,081 1,151 1,264 197 227 7 103 5 1QFY132QFY133QFY134QFY131QFY142QFY14 1QFY132QFY133QFY134QFY131QFY1

  7. Slide 7: New channels and packages launched to provide greater choice, value and content

    New channels and packages launched to provide greater choice, value and content experiences to customers 171 New entry-level packs FAMILY HD CHUEN MIN HD CHUEN MIN total channels (RM49.95) (RM49.95) (RM37.95)  +11 HD channels  +3 Chinese channels 39  Leading with HD experience  Improving vernacu

  8. Slide 8: Content 360 to further engage our viewers

    Content 360 to further engage our viewers KE 3 Final Concert is one of the most Top program on Prima, with an average watched show s in Astro’s history, Received 350k votes – 212% increase 700k viewership weekly compared to Season 2! with 1.28 mn viewers on final PRINT TV 3rd season final overtook

  9. Slide 9: Enhancing customer experience remains a key focus

    Enhancing customer experience remains a key focus – best ever score achieved in H1’FY14 eQ Astro uses the eQ system, a Nielsen product, to monitor customer experience at all steps along the customer journey and across all touch points eQ score Percentage who rate us as exceeding expectations 79 62 +

  10. Slide 10: Adex continues to outperform the industry

    Adex continues to outperform the industry Adex revenue (RM mn) Share of radex Radio listeners (mn) TV Radio Others 55% H1: 270 12.9 +15% 12.3 H1: 235 155 53% 142 2 140 1 2 125 2 115 66 FY13 FY14 FY13 FY14 57 59 2 95 1 55 49 Astro TV Share of TV adex viewership share 44 30% 44% 82 81 87 68 64 26% 50

  11. Slide 11: Increasing value proposition underpins double digit revenue growth

    Increasing value proposition underpins double digit revenue growth (2) Total revenue (RM mn) YoY growth 1,188 13% 1,131 1,125 44 1,070 1,079 63% 32 39 66 15% 987 29 37 59 49 57 55 81 64 87 15% 22 68 44 82 50 Other Radio TV adex 959 973 991 11% TV subscription 871 902 919 1QFY13 2QFY13 3QFY13 4QFY13

  12. Slide 12: Operating expenses will peak in FY14 as we focus on reinvesting for growth

    Operating expenses will peak in FY14 as we focus on reinvesting for growth Total operating expenditure (RM mn) Continuous investment in content offerings 33% 33% 31% 34% 32% 32% to provide an enriching experience for our Content cost as % of TV revenue customers whilst managing content costs 1,004 w

  13. Slide 13: Disciplined capex to drive growth; peaks in FY15

    Disciplined capex to drive growth; peaks in FY15 Cash capex (RM mn) STBs capitalised (RM mn) as % of 6% 6% as % of 12% 20% revenue revenue 139 12 114 4 10 19 21 56 453 79 52 240 FY13 FY14 FY13 FY14 Revenue growth Expansion  STB capex will peak in FY14 as we target completing the Operational efficie

  14. Slide 14: Consistently strong free cash generation exceeds PAT

    Consistently strong free cash generation exceeds PAT… Free cash flow (RM mn) as % of PAT 167% 221% (205) (148) 674 513 469 365 Cash from Cash from Free cash flow Cash from Cash from Free cash flow operations investing operations investing FY13 FY14 FY12 FY13 …enabling significant flexibility on capi

  15. Slide 15: Quarterly dividend announcement

    Quarterly dividend announcement  Leveraging on invested capital, AMH will continue to be highly cash generative enabling the adoption of a progressive dividend policy  AMH Board of Directors is pleased to declare a quarterly dividend of 2.0 sen per share  Entitlement and payment dates: 30 Septemb

  16. Slide 16: Appendix

    Appendix

  17. Slide 17: PAT reconciliation

    PAT reconciliation (RM mn) FY13 FY14 EBITDA 700 786 Margin % 34% 34% Depreciation and amortisation (262) (400) Increase in D&A due to increased cumulative STBs capitalised and EBIT 438 386 depreciated Finance income 37 33 Finance cost (175) (132) Reduction in finance cost due to lower net unrealised

  18. Slide 18: Group balance sheet overview

    Group balance sheet overview (RM mn) FY13 FY14 (RM mn) FY13 FY14 Non-current assets 3,716 4,145 Non-current liabilities 4,893 4,694 Property, plant and equipment 1,740 2,099 Payables 455 1,067 Other non-current assets 1,976 2,046 Borrowings 4,199 3,503 Other non-current liabilities 239 124 Current a

  19. Slide 19: Debt profile

    Debt profile Total borrowings (RM mn) Details of borrowings  US dollar term loan of US$330mn swapped into Ringgit (RM1.0bn), fully Finance lease RM term loan USD term loan drawn on 10 June 2011 USD term  10 year tenor, maturing on 8 June 2021 loan  Back ended amortisation schedule, with average l

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