Astro Malaysia Holdings Bhd. · MYX:ASTRO
Astro Malaysia Holdings Bhd — Q3 FY2013 Earnings Presentation
18 slides from Astro Malaysia Holdings Bhd's earnings presentation, Dec 5, 2012
Slide 1: 3rd quarter results
3rd quarter results 5th December 2012
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
Slide 3: Q3 snapshot — continuing to execute on strong growth momentum
Q3 snapshot — continuing to execute on strong growth momentum Highlights FY12 FY13 Growth TV households (000s)(1) 6,525 6,701 3% TV household penetration(2) 46% 50% 4pp TV household penetration (000s) 3,014 3,345 11% Pay TV households (000s) 3,014 3,213 7% NJOI households (000s) N/A 132 N/A Net adds
Slide 4: Astro is reinvesting in its customers through the B.yond swap-out
Astro is reinvesting in its customers through the B.yond swap-out Customers with B.yond STBs (000s) Tribrid—DTH, IPTV and OTT Penetration 32% 38% 44% 51% 55% MPEG-4 HD & 3D 1,773 PVR 1,599 Push and pull VOD 1,377 1,154 Industry-leading NDS CAS 961 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 3 | 3QF
Slide 5: …thus, enabling take-up of more products and services…
…thus, enabling take-up of more products and services… 73% 199% 1,151 227 8 667 76 1 FY12 FY13 FY12 FY13 FY12 FY13 Multiroom apps downloaded 175 221 650 56% 126% 112 137 288 Launched May 2012 FY12 FY13 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 FY12 FY13 …capturing a greater share of the consumer’s wallet 4
Slide 6: Growth underpinned by innovating in content…
Growth underpinned by innovating in content… 8 new channels, 5 HD in Q3 27 HD channels currently, Channels target to launch more by end- FY13 Key IPs e.g. Maharaja Lawak series pushed Mustika to having 1.0 mn subscribers, from 0.7 mn in 3QFY12. More IPs now above IPs 1 mn viewership mark Oh
Slide 7: …with great things to come
…with great things to come Astro B.yond IPTV powered by Maxis (1.3m homes passed) - Maxis fibre (4QFY13 launch) - TM network (1QFY14 launch) AOTG charge for > 2 devices AOTG for non-pay TV customers Revenue enhancing Next-gen STB with built-in WiFi for easier access to VOD services Vernacular EPG—ad
Slide 8: A segmented customer strategy…
A segmented customer strategy… Segment proposition IPTV Premium segment product proposition: IPTV bundle HD/PVR bundling – Super Pack Retain & grow TOP Multi-room / Multi-screen Digital home solution Drive ARPU growth through: HD and PVR services take-up 70% addressable MID Move up value
Slide 9: …leading to best-in-class customer metrics
…leading to best-in-class customer metrics Residential customers (000s) MAT ARPU (RM) More Malaysians can NJOI Pay-TV NJOI 132 92.3 Minimal cost model—NJOI customers 91.8 14 91 90.3 purchase own STBs and install them 89.0 87.4 Engages churners, and provides easy 3,166 3,213 3,108 path to return
Slide 10: Pursuing adex with mass, niche and premium strategies
Pursuing adex with mass, niche and premium strategies Adex revenue (RM mn) Launch of Melody FM Radio listeners (mn) TV Radio Others #1 station across all 4 12.3 17% 360 major languages 6 Radio Pursuing duopoly strategy 11.7 308 53% share of Radex 6 156 FY12 FY13 120 Leverage multi-channel
Slide 11: Operational excellence has driven topline acceleration
Operational excellence has driven topline acceleration Total revenue (RM mn) TV revenue breakdown (RM mn) TV revenue 94% 94% 11% contribution 2,941 2,647 58 51 11% 182 199 3,133 2,414 2,684 FY12 FY13 Subscription revenue Advertising revenue Other revenue (1) 2,811 Radio revenue (RM mn) 29% 156 120 F
Slide 12: Costs focused on growing the business
Costs focused on growing the business Continuous investment in content offerings with Total operating expenditure (RM mn) additional HD and SD channels; additionally impact of Euro 2012 and Olympics sporting year; content Content cost as % costs managed within expectation at 32%-35% of 30% 31% TV re
Slide 13: Strong cashflows with disciplined growth capex investments
Strong cashflows with disciplined growth capex investments Total capex (RM mn) Free cash flow (RM mn) (1) as % of total 14% 20% as % of 38% 52% revenue EBITDA Significant focus on Astro B.yond 409 545 STB rollout 640 383 428 181 202 212 FY12 FY13 FY12 FY13 Cash capex Capitalised capex Accounting and
Slide 14: Dividend announcement
Dividend announcement AMH Board of Directors are very pleased to declare a maiden quarterly dividend of 1.5 sen per share Entitlement date: 21 December 2012 Payment date: 11 January 2013 13 | 3QFY13 results
Slide 15: Appendix
Appendix
Slide 16: Net income reconciliation
Net income reconciliation Lower EBITDA mainly due to increase in installation, marketing and distribution (RM mn) FY12 FY13 costs to convert subscribers to B.yond STB and promote higher take up of new EBITDA 1,088 1,042 products and services D&A (305) (424) Higher depreciation & amortization EBIT 78
Slide 17: Group balance sheet overview
Group balance sheet overview (RM mn) (RM mn) Non-current assets 3,874 Non-current liabilities 4,444 Property, plant and equipment 1,829 Payables 602 Other non-current assets 2,045 Borrowings 3,629 Current assets 2,955 Other non-current liabilities 213 Receivables and prepayments 760 Current liabilit
Slide 18: Debt profile
Debt profile Details of Borrowings Total Borrowings (RM mn) US dollar term loan of US$330mn swapped into Ringgit (RM1.0bn), fully drawn on 10 June 2011 Finance lease RM term loan USD term loan 10 year tenor, maturing on 8 June 2021 USD term loan Back ended amortization schedule, with average l
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