Astro Malaysia Holdings Bhd. · MYX:ASTRO
Astro Malaysia Holdings Bhd — Q2 FY2018 Earnings Presentation
29 slides from Astro Malaysia Holdings Bhd's earnings presentation, Sep 14, 2017
Slide 1: 2nd Quarter FY18 Results
2nd Quarter FY18 Results 14th September 2017
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: 1HFY18 key performance highlights
1HFY18 key performance highlights • 5.0mn to 5.3mn customers Revenue -2% • 69% to 72% household penetration GROW • 1.3mn Astro GO registered users RM2.79bn→ RM2.75bn • 1.1mn Go Shop registered customers • 1.9mn Tribe registered users Adex +4% RM336mn→ RM351mn • Vernacular content drives viewership L
Slide 4: 1HFY18 year-on-year overview
1HFY18 year-on-year overview NB Highlights 1H FY17 1H FY18 Growth (1) TV household data sourced from the TV households (000s)(1) 7,162 7,261 1% Department of Statistics Malaysia and TV household penetration(2) Media Partners Asia 69% 72% 3pp (2) Household penetration comprises TV customer base (000s
Slide 5: Serving 5.3mn households with 639k connected homes and 6.7mn monthly visitors
Serving 5.3mn households with 639k connected homes and 6.7mn monthly visitors to our digital platforms Households (000s) Connected Boxes (000s) ARPU (RM) Monthly Unique Visitors (1) (mn) Household Penetration 69% 72% +62% +2% +37% 639 5,262 100.8 6.7 4,974 99.2 395 4.9 1HFY17 1HFY18 1HFY17 1HFY18 1H
Slide 6: TV viewership share and time spent on the rise
TV viewership share and time spent on the rise Pay-TV NJOI 189 73 61 28 channels Astro-branded HD channels channels channels TV Viewership Share Avg. Daily Viewers (mn) Avg. Time Spent/Day -2.6% +0.4% 13.8 13.4 -8.6% 23% +2.4% +1pp 8.1 3:48 3:49 77% 7.4 2:03 2:06 1HFY17 1HFY18 1HFY17 1HFY18 Astro FT
Slide 7: Revenues resilient in a challenging environment
Revenues resilient in a challenging environment (2) Total revenue (RM mn) YoY growth 1,428 1,424 1,397 1,420 (2%) 1,363 74 62 1,326 70 61 (4%) 64 62 186 188 181 208 4% 150 143 Go Shop Adex Subscription/Others (1) 1,148 1,168 1,174 1,155 1,140 (2%) 1,121 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 NB (
Slide 8: Adex growth amid industry contraction
Adex growth amid industry contraction (1) (2) (3) Advertising income (RM mn) YoY growth Share of Radex Radio listeners (mn) Total Malaysia TV Radio 208 4% gross ADEX YoY 73% 74% 186 188 growth (2)(5) 181 16.1 12.8 150 89 1% OVERALL ADEX 143 (7%) 87 83 86 1H FY17 1H FY18 1HFY17 1HFY18 72 72 RADIO Ast
Slide 9: Cost optimisation remains a key focus
Cost optimisation remains a key focus Total operating expenditure (RM mn) 28% Content cost as % 33% 39% 37% 35% 34% of TV revenues 1,184 1,136 1,129 1,085 1,029 1,043 687 665 695 676 624 690 497 471 434 409 405 353 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2Q FY18 Content costs Other expenses NB (1) Conten
Slide 10: Applying ROI discipline in capex spend
Applying ROI discipline in capex spend Cash capex (RM mn) Capitalised capex (RM mn) as % of 3% 3% as % of 2% 4% revenue revenue 76 71 4 14 46 36 103 26 62 20 1HFY17 1HFY18 1HFY17 1HFY18 Revenue Growth Digitalisation Capital Maintenance ▪ STBs/ODUs are owned by Astro, and are capitalised Key capex in
Slide 11: Strong cash generation consistently exceeds PATAMI
Strong cash generation consistently exceeds PATAMI… Free cash flow (RM mn) as % of PATAMI 162% 162% 256 240 979 771 723 531 (2) (3) (2) (3) Cash from Cash from Free cash flow Cash from Cash from Free cash flow operations investing operations investing 1HFY17 1HFY18 …enabling significant flexibility
Slide 12: Quarterly dividend announcement
Quarterly dividend announcement ▪ Leveraging on invested capital, AMH continues to be highly cash generative ▪ The Board of Directors of AMH has declared a quarterly dividend of 3.00 sen per share for 2QFY18 ▪ Quarterly dividend entitlement and payment dates: 3 October 2017 and 13 October 2017, resp
Slide 13: Pushing connected homes to drive engagement
Pushing connected homes to drive engagement 62% increase in connected homes YoY 1 in 3 connected homes are multi- screened Vernacular|Kids Korean | Genres Exclusives Latest 2x viewing hours for • Full box sets for binge watching • Latest content | Day/Date OD homes vs linear • Never miss TV with Cat
Slide 14: Positioning Astro Go as the go to OTT for Astro subs
Positioning Astro Go as the go to OTT for Astro subs.. • Personalised content offerings #1 Entertainment app in covering linear, VOD and live Malaysia on iTunes and • Strong focus on vernaculars Google Play Store (1) including exclusive content • Differentiated features including Take your TV everyw
Slide 15: NJOI Now as the go to OTT for the freemium segment
..and NJOI Now as the go to OTT for the freemium segment Mobility and OD extension to our NJOI customer base 18 channels free with options for in-app purchases, driven by Entertainment app in #3 existing Astro vernaculars and VOD content Malaysia on Google Play Store (1) Provides flexibility for cus
Slide 16: Go Shop priority on growing customer numbers
Go Shop priority on growing customer numbers via differentiated offerings 633k app Registered Customers (000s) downloads(1) 45% 1HFY18 1,127 Revenue 777 132mn 4X daily 1HFY17 1HFY18 Launch • Celebrity endorsed products of ‘Brand of 633k LIVE SHOWS • 4x daily live show mobile downloads Net Revenue th
Slide 17: Tribe continues to expand regionally
Tribe continues to expand regionally Registered Users (mn) Average Time Spent (mins/week) 1.3 1.9 125 160 mins mins 1QFY18 2QFY18 1QFY18 2QFY18 Thailand Soft launch August 2017 16 | 2QFY18 results
Slide 18: Going beyond creating leading vernacular content
Going beyond creating leading vernacular content.. SEPAHTU REUNION MAHARAJA LAWAK SURI HATI MR. PILOT ANUGERAH HERO SEORANG LIVE MEGA 2017 MELETOP ERA 2017 CINDERELLA 3.2mn 4.8mn 5.2mn 3.6mn 3.1mn viewership viewership viewership viewership viewership ASTRO C.G.M 2017 EVENING EDITION PRIME TALK RASI
Slide 19: Harnessing our digital assets and social media reach
..to harnessing our digital assets and social media reach OTT Streaming Shop Listen Sports Education Kids & Entertainment Animation Social 30mn 8mn 4mn 3mn Media Reach Facebook Instagram Twitter YouTube Followers Followers Followers subscribers Viewership Product Reach Digital .com.my 13.4mn 4.3mn 6
Slide 20: Generate buzz for new signature IPs
..to generate buzz for new signature IPs Digital Views Viewership 3mn+ 2.6mn Across All Gempak Platforms Social Media Reach Conversations 14mn+ 146k+ Average Per Week On Social Media Keyword Twitter Most Searched Trended Keywords within Gempak (Apr 17 – May17) Every Week #1 Islamic IP on Astro 19 |
Slide 21: Propel viewership for major live events such as the SEA Games
..and propel viewership for major live events such as the recent SEA Games TV OTT Digital/Social 4 dedicated channels for additional 4 exclusive Boost in fan engagement around the clock coverage channels Social media postings and advertising generated 11mn 64mn unique viewers reach Most watched even
Slide 22: Building on successful digital IPs with new themes
Building on successful digital IPs with new themes.. 3 seasons collectively garnering over 30mn digital views.. The House enters Season 4 Cast Storyline Digital-first release 1st ▪ First window release exclusively on Gempak Fattah Amin Alvin Chong 2nd @FattahAminz @AlvinChong123 2.3mil followers 346
Slide 23: Championing content which can travel regionally
..and championing content which can travel regionally Nusantara Kids Islamic Horror eSports Islamic content and Horror Premium Nusantara Transmedia kids and Asian horror original The next wave of sports series animation content with interactive digital serieshorror Asian and movies original for mill
Slide 24: Leverage 360 fandom for IP monetisation
..to ultimately leverage on 360O fandom for IP monetisation FTA 600m views; 600k subs VOD Top 3 Malaysian channel MeadJohnson Tesco Singapore CDs & DVDs Brand ambassadorships Mall rides Concept store FREE PAID Cinema VOD In-flight Events Licensing & Merchandising screenings 68K buys #4 app in Google
Slide 25: Appendix
Appendix
Slide 26: PAT reconciliation
PAT reconciliation (RM mn) 1HFY17 1HFY18 EBITDA 903 1,011 Margin % 32% 37% Depreciation and amortisation (1) (374) (329) EBIT 530 682 Margin % 19% 25% Finance income 39 33 Finance cost (122) (106) Share of post tax results from investments 3 0 NB PBT 449 609 (1) Depreciation and amortisation exclude
Slide 27: Balance sheet overview
Balance sheet overview (RM mn) FY17 1HFY18 (RM mn) FY17 1HFY18 Non-current assets 4,559 4,944 Non-current liabilities 3,356 3,847 Property, plant and equipment 1,818 2,498 Payables 490 563 Other non-current assets 2,741 2,446 Borrowings 2,776 3,197 Other non-current liabilities 90 87 Current assets
Slide 28: Debt profile
Debt profile Total borrowings (RM mn) Details of borrowings ▪ As at 31 July 2017, outstanding principal US dollar term loan stood at Finance lease Revolving credit US$198.0mn. The ninth principal repayment of USD24.75mn RM term loan USD term loan (RM74.72mn) is scheduled to be paid on 8 December 201
Slide 29: Thank you
Thank you Go Beyond
Astro Malaysia Holdings Berhad — Q2 FY2018 Earnings Presentation on 6ix