Star Media Group Berhad · MYX:STAR
Star Media Group Berhad — The Star Media Group Berhad — Q4 2015 Earnings Presentation
33 slides from Star Media Group Berhad's earnings presentation, Mar 4, 2016
Slide 1: Analyst Briefing
STAR MEDIA GROUP Read. Listen. Watch. Think. Be Inspired Analyst Briefing Friday, 4 March 2016 THE STAR MEDIA GROUP
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 4 Business Updates 2015 2015 Group Segments Outlook & Highlights Financials financials Strategy 3
Slide 4: Highlights: Oil prices
10 20 30 40 50 60 70 80 0 2/1/2015 16/1/2015 USD 30/1/2015 Source: Bloomberg data 13/2/2015 27/2/2015 13/3/2015 27/3/2015 10/4/2015 24/4/2015 8/5/2015 22/5/2015 5/6/2015 19/6/2015 3/7/2015 Highlights: Oil prices 17/7/2015 31/7/2015 14/8/2015 28/8/2015 11/9/2015 Brent Crude Prices 25/9/2015 9/10/2015
Slide 5: Highlights: Ringgit performance 2015
Highlights: Ringgit performance 2015 Index Ringgit vs FBMKLCI Index RM 2000 4.6 MYR 1950 PX_LAST, 4.2943 against 4.4 USD 1900 Jan 2015 : 4.2 RM3.49 1850 4 1800 Dec 2015 : RM4.29 1750 FBMKLCI Index, 3.8 1692.51 1700 FBMKLCI 3.6 index 1650 Jan 2015: 3.4 1752.77 1600 3.2 1550 Dec 2015: 1692.51 1500 3 1
Slide 6: Highlights: Consumer sentiment
Highlights: Consumer sentiment CONFIDENCE HITS A NEW LOW • CSI dips to a record-low of 63.8 • Present finances worsen • Jobs and incomes to deteriorate further • Growing fears of higher prices • Consumers to watch their Source: MIER website spending MIER reported consumer sentiment at record low 6
Slide 7: Highlights: Other factors in 2015
Highlights: Other factors in 2015 Highlights: Other factors • Political uncertainties in 2015 • Bersih 4 movement & Red Shirt Rally • Budget to be revised (tabled on 28 Jan 2016) • Higher cost of living - increase in toll rate (Oct 2015) Negative factors which dampened economic conditions 7
Slide 8: Highlights: Adex falls in 2015
Highlights: Adex falls in 2015 Ad spend by medium share (%) FY 2015 45.00% 40.00% 38.5% 35.00% 33.1% 30.00% Share % 25.00% 22.8% 42.3% 20.00% 15.00% 30.4% 10.00% 21.0% 5.00% 1.0% 0.9% 3.5% 3.3% 0.5% 0.3% 1.3% 1.1% 0.00% FTA Pay-TV Newspaper Magazines Radio Cinema In-store media 2015 % market share 2
Slide 9: Star Online Performance Dec '14 - Dec '15
Star Online Performance Dec ‘14 - Dec ‘15 English News Portals Performance Dec‘14-Dec’15 (Combined PC & Mobile) Total Unique Visitors (000) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 The Star Online MALAY
Slide 10: Highlights: How did Star fare?
0.5 1.5 2.5 0 2 1 3 2/1/2015 12/1/2015 20/1/2015 28/1/2015 9/2/2015 17/2/2015 2/3/2015 Source: Bloomberg data 10/3/2015 18/3/2015 26/3/2015 3/4/2015 13/4/2015 21/4/2015 29/4/2015 11/5/2015 STAR MK Equity 19/5/2015 27/5/2015 4/6/2015 12/6/2015 22/6/2015 30/6/2015 8/7/2015 16/7/2015 27/7/2015 4/8/2015
Slide 11: Highlights: High payout maintained
Highlights: High payout maintained Dividends Per Share (sen) 20 Total 18 sen Total 18 sen Total 15 sen Total 18 sen Total 18 sen 18 16 6 6 6 14 3 12 sen 10 8 6 4 2 12 12 12 12 18 0 2011 2012 2013 2014 2015 Ordinary Dividends Special Dividends 2011 2012 2013 2014 2015 Media 1 16 sen 13 sen 14 sen 11
Slide 12: Anchor Message
Group is stable Anchor Message Stronger-than-expected results Cost control & Strengthening all Investments in Prudent media platforms strategic businesses management • Ramped up bundled • Cityneon through VHE offerings, creative buys • 100% stake in LiTV • Successful AIM which met the needs of adver
Slide 13: Agenda
Agenda 11 2 3 4 Quarter 4 Business Updates 2015 2015 Group Segments Outlook & Highlights Financials financials Strategy 13
Slide 14: Commendable performance in weak market
Commendable performance in weak market Revenue PBT 1,200 250 RM190.95m 1,000 1 2 200 3 37.53 800 150 RM million RM million 600 100 1,014 1,019 153.42 170.07 400 50 200 0 2014 2015 2014 2015 Slightly higher revenue in 2015; Higher PBT after factoring in VSS & impairment expenses in 2014 14
Slide 15: Performance of Star Media Group Berhad
Performance of Star Media Group Berhad 1Q15 2Q15 3Q15 4Q15 12M15 12M14 Var. (RM million) Revenue 217.43 266.31 254.51 280.77 1,019.02 1,013.74 0.5% EBITDA 41.03 48.09 34.86 59.38 183.36 180.80 1.4% PBT 37.60 42.93 29.20 60.34 170.07 153.42 10.9% VSS Expenses - - - - - 11.50 (100)% Impairment - - - -
Slide 16: Agenda
Agenda 11 2 3 4 Quarter 4 Business Updates 2015 2015 Group Segments Outlook & Highlights Financials financials Strategy 16
Slide 17: 4Q15 Business Segments
4Q15 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 17
Slide 18: Performance of Star Media Group Berhad: Print and Digital
Performance of Star Media Group Berhad Print and Digital Segment 1Q15 2Q15 3Q15 4Q15 12M15 12M14 Var. (RM million) Revenue 162.60 164.98 157.24 161.88 646.70 706.47 (8.5)% EBITDA 45.51 45.41 40.34 47.97 179.23 182.54 (1.8)% PBT 44.44 39.79 35.95 51.70 171.88 162.82 5.6% VSS Expenses - - - - - 11.50
Slide 19: Breakdown of Revenue
Breakdown of Revenue Q-on-Q comparison 4Q 2015 Rev – RM161.88m vs RM157.24m in 3Q15 Q4 vs Q3 and 2015 vs 2014 RM ‘mil 4Q 2015 comparison 800.00 Digital Circulation 6% 700.00 11% 600.00 500.00 400.00 300.00 200.00 100.00 0.00 3Q 2015 4Q 2015 2015 2014 Advertising Advertising Circulation Digital 83% A
Slide 20: 4Q15 Business Segments
4Q15 Business Segments • Print and Digital 1. 2. • Event, Exhibition, Interior and Thematic 3. • TV Channel 4. • Radio 20
Slide 21: Performance of I.Star Ideas Factory
Performance of I.Star Ideas Factory 1Q15 2Q15 3Q15 4Q15 12M15 12M14 Var. (RM million) Revenue 3.47 7.93 1.31 10.55 23.26 28.69 (18.9)% EBITDA/ (0.55) 2.36 (0.36) 4.15 5.60 10.94 (48.8)% (LBITDA) PBT/(LBT) (0.57) 2.33 (0.37) 4.15 5.54 10.51 (47.3)% EBITDA/ (15.9)% 29.8% (27.5)% 39.3% 24.1% 38.1% (LBI
Slide 22: Performance of Cityneon Holdings Limited
Performance of Cityneon Holdings Limited 1Q15 2Q15 3Q15 4Q15 12M15 12M14 Var. (SGD million) Revenue 12.95 27.74 23.85 31.95 96.49 78.02 23.7% EBITDA/ (1.49) 1.15 (0.58) 3.15 2.23 3.09 (27.8)% (LBITDA) PBT/(LBT) (1.64) 0.91 (1.04) 2.56 0.79 2.51 (68.5)% EBITDA/ (11.5)% 4.1% (2.4)% 9.9% 2.3% 4.0% (LBI
Slide 23: 4Q15 Business Segments
4Q15 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 23
Slide 24: Performance of Li TV Holdings Limited
Performance of Li TV Holdings Limited 1Q15 2Q15 3Q15 4Q15 12M15 12M14 Var. (USD million) Revenue 0.78 0.60 0.80 0.87 3.05 3.17 (3.8)% (LBITDA) (0.45) (0.50) (0.45) (0.53) (1.93) (1.88) (2.7)% (LBT) (0.44) (0.52) (0.50) (0.56) (2.02) (1.96) (3.1)% (LBITDA) Margin (57.7)% (83.3)% (56.3)% (60.9)% (63.3
Slide 25: 4Q15 Business Segments
4Q15 Business Segments 1. • Print and Digital • Event, Exhibition, Interior and Thematic 2. 3. • TV Channel 4. • Radio 25
Slide 26: Performance of Radio Operations
Performance of Radio Operations Star Media Radio Group 1Q15 2Q15 3Q15 4Q15 12M15 12M14 Var. (RM million) Revenue 11.80 12.29 12.84 11.65 48.58 51.37 (5.4)% EBITDA/(LBITDA) 1.10 (0.33) (0.01) (0.88) (0.12) 4.63 (102.6)% PBT/(LBT) 0.77 (0.54) (0.44) (0.83) (1.04) (1.62) 82.6% (excluding impairment) EB
Slide 27: Agenda
Agenda 11 2 3 4 Quarter 4 Business Updates 2015 2015 Group Segments Outlook & Highlights Financials financials Strategy 27
Slide 28: Updates: RED & Capital FM
Updates RED & Capital FM • Stations are on auto play while management decide the next course of action • Considering restructuring, revamping and/or disposal 28
Slide 29: Updates: Cityneon
Updates Cityneon Marvel: • Treasure Island Las Vegas (April 2016) • Paris Esplanade La Defense (April-Sept 2016) Transformer: • Cityneon secured the exclusive global rights to bring Transformers experience in all markets outside Japan and the city Indianapolis, Indiana • The rights to the Transforme
Slide 30: 2016 Outlook
2016 Outlook Issues affecting consumer confidence • Oil prices • Higher electricity tariff beginning 2016; Higher flour prices; Revised excise duty on alcohol • Uncertainty about TPPA • Terrorism in Asia (Indonesia attack Jan 2016) • Australia security alert for Malaysia (22 Feb 2016) The year 2016
Slide 31: Strategic priorities for 1H 2016
Strategic priorities for 1H 2016 • Expanding digital platform e.g. Star TV, while continuing to 1. strengthen print 2. • Stepping up more bundled offerings and creative buys • Continuous look-out for M&A deals 3. 31
Slide 32: Download our presentation
Download our presentation http://starmediagroup.my/ or http://starmediagroup.my/investors- relations/presentations/ 32
Slide 33: Thank You
THANK YOU THE STAR MEDIA GROUP 33
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