Astro Malaysia Holdings Bhd. · MYX:ASTRO

Astro Malaysia Holdings Bhd — Q3 FY2017 Earnings Presentation

25 slides from Astro Malaysia Holdings Bhd's earnings presentation, December 2016

  1. Slide 1: 3rd Quarter FY17 Results

    3™ Quarter FY17 Results Go Beyond

  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 Q3 FY17 performance

    Key highlights of Q3 FY17 performance GROW • 4.7mn to 5.0mn customers Revenue +3% • 66% to 70% HH penetration RM4.07bn → RM4.22bn • 1.2mn to 1.6mn NJOI customers EBITDA -4% • 94% on B.yond STBs RM1.44bn → RM1.37bn LEAD • Local content drives viewership • 76% to 77% share of TV viewership Adex +13% R

  4. Slide 4: Q3 FY17 snapshot

    Q3 FY17 snapshot Highlights YTD FY16 YTD FY17 Growth TV households (000s)(1) 7,102 7,181 1% TV household penetration(2) 66% 70% 4pp NB TV household penetration (000s) 4,696 5,021 7% (1) TV household data sourced from the Department of Statistics Malaysia and Pay TV households (000s) 3,534 3,443 -3%

  5. Slide 5: Our dual-model market approach is resilient in a challenging operating environment

    Our dual-model market approach is resilient in a challenging operating environment Residential customers (000s) ARPU (RM) Churn (%) Pay-TV NJOI 10.9% 12.4% 1,268 1,395 1,481 1,579 99.9 10.0% 1,071 1,163 99.3 99.3 9.8% 9.4% 9.5% 99.1 99.0 99.2 3,520 3,534 3,550 3,504 3,493 3,443 2QFY16 3QFY16 4QFY16

  6. Slide 6: Upselling of value-added products and services remains a key priority

    Upselling of value-added products and services remains a key priority (000s) (000s) (000s) 59% 58% 59% 59% 59% 59% 877 903 908 925 59 62 62 62 786 831 55 Penetration(1) 51 1,888 1,890 1,938 1,939 1,924 1,902 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Mu

  7. Slide 7: Our vernacular content & viewership continue to grow

    Our vernacular content & viewership continue to grow Pay-TV (1) Underpinned by a focus on signature brands and new IP creation 189 Suri Hati Mr. Maharaja Lawak Gegar Vaganza 3 Evening Edition Mangalyam channels Pilot Mega 2016 Thantunanena 72 198 Astro-branded channels 5.1mn 4.8mn 4.5mn 318k 156k Vi

  8. Slide 8: Suri Hati Mr. Pilot: Astro's all-time highest viewed drama

    Suri Hati Mr. Pilot: Astro’s all-time highest viewed drama 360° ENGAGEMENT TV Views Digital Views 5.1 mil 4.6 mil New all-time high Views record! Articles On Ground 1.8 mil RM120/pax Hits on Screening @ GSC astrogempak.com Pavillion Social Media Reach on webchat, fb chat 1 mil & social conversation

  9. Slide 9: eGG Network: Paving the way for eSports in ASEAN

    eGG Network: Paving the way for eSports in ASEAN  In collaboration with PGL, eGG presented Malaysia’s first multilingual eSports championship, Counter Strike: Global Offensive (CS:GO) Minor Championship Asia in October 2016  Counter Strike: Global Offensive (CS:GO) Minor Championship Asia was broa

  10. Slide 10: Offering a whole lot more On Demand, on TV & AOTG

    Offering a whole lot more On Demand, on TV & AOTG CATCH-UP OR BINGE WATCH YOUR FAVOURITE ASTRO PROGRAMS KIDS ON DEMAND & ON THE GO ASTRO BEST ASTRO FIRST A Destination for Kids & Parents Best Hollywood Cinema Fastest to Home Latest Local & Asian Cinema

  11. Slide 11: New user experience and personalised recommendations for on demand service

    New user experience and personalised recommendations for on demand service Binge Watching TV Series TV Shows and Movies For You Never miss newly-added TV episodes or seasons. Auto- Top TV series and movies playback for next episodes recommended based on available viewing history Filtering Entitled P

  12. Slide 12: Astro On The Go (AOTG): Content anytime, anywhere

    Astro On The Go (AOTG): Content anytime, anywhere In Dec 2016, AOTG re-platformed to deliver Best-In-Class user experiences, which includes: Content Viewed by Genre TV Shows Support for Comprehensive Others 25% Google Chrome catalogue 31% Improved app Facebook login & social share Live Events loadin

  13. Slide 13: Digital transformation: Rewiring core and building new digital capabilities

    Digital transformation: Rewiring core and building new digital capabilities Enhance Marketing & Dynamic Data aggregation Multichannel Real time Advanced analytics & Sales Enablers segmentation strategy marketing marketing recommendation automation capability engine Personalised marketing engagement

  14. Slide 14: Go Shop on track for growth and expansion

    Go Shop on track for growth and expansion  Malaysia’s first 24-hour Malay (Ch. 118) and Chinese language (Ch. 318) home shopping channels  In November 2016 in partnership with StarHub, launched Go Shop Singapore, a Mandarin-channel on StarHub Channel 110  Go Shop Singapore will leverage on StarHu

  15. Slide 15: Tribe launches in its 2nd market, Philippines

    Tribe launches in its 2nd market, Philippines  Tribe is Astro’s presence in the region for digital consumers via OTT  Launching first in Indonesia, Tribe has officially launched in Philippines on 2nd December in partnership with Globe, with an exclusive viewing party for the Korean Mnet Asia Music

  16. Slide 16: YoY revenue growth underpinned by Go Shop and Adex

    YoY revenue growth underpinned by Go Shop and Adex (2) Total revenue (RM mn) YoY growth 1,428 1,424 3% 1,374 1,402 1,369 1,363 72 73 85 0% 70 80 74 74 38 63 62 59% 52 64 81 78 87 83 11% 75 72 87 93 99 104 84 77 16% (1) Other Go Shop Radio TV adex 0% TV subscription 1,094 1,083 1,096 1,076 1,095 1,09

  17. Slide 17: Advertising income outperforming in tough markets

    Advertising income outperforming in tough markets (1) (2) (3) Advertising income (RM mn) YoY growth Share of Radex Radio listeners (mn) Total Malaysia TV Radio Publications gross ADEX YoY 188 13% growth (2)(5) 73% 186 70% 15.6 1 1 12.8 174 (55)% 168 161 2 2 OVERALL ADEX 2 150 1 (1)% 87 83 78 81 3QFY

  18. Slide 18: Continued cost optimisation in a "double sporting year"

    Continued cost optimisation in a “double sporting year” Total operating expenditure (RM mn) Content cost as % 33% 34% 34% 33% 39% 37% of TV revenue 1,184 1,095 1,121 1,113 1,136 1,085 114 166 133 131 118 135 141 139 121 120 124 117 406 415 428 440 436 427 411 427 420 492 469 406 2QFY16 3QFY16 4QFY16

  19. Slide 19: Applying ROI discipline in capex spend

    Applying ROI discipline in capex spend Cash capex (RM mn) Capitalised capex (RM mn) as % of 5% 3% as % of 4% 3% revenue revenue 198 21 130 88 17 76 89 175 108 37 YTD FY16 YTD FY17 FY16 FY17 Revenue Growth Digitalisation Capital Maintenance  STBs/ODUs are owned by Astro, and are capitalised Key cape

  20. Slide 20: Consistently strong cash generation significantly exceeds PATAMI

    Consistently strong cash generation significantly exceeds PATAMI.. Free cash flow (RM mn) as % of PATAMI 260% 210% 475 391 1,544 1,398 1,069 1,006 (2) (3) (2) (3) Cash from Cash from Free cash flow Cash from Cash from Free cash flow operations investing operations investing YTD FY16 YTD FY17 .. enab

  21. Slide 21: Quarterly dividend announcement

    Quarterly dividend announcement  Leveraging on invested capital, AMH continues to be highly cash generative enabling the adoption of a progressive dividend policy  The Board of Directors of AMH is pleased to declare a quarterly dividend of 3.00 sen per share in respect to 3QFY17  Quarterly divide

  22. Slide 22: Appendix

    Appendix

  23. Slide 23: PAT reconciliation

    PAT reconciliation (RM mn) FY16 FY17 EBITDA 1,436 1,372 Margin % 35% 33% Depreciation and amortisation (1) 619 551 EBIT 817 822 NB Margin % 20% 19% (1) Depreciation and amortisation excludes the amortisation of film Finance income 41 30 library and programme rights which is expensed as part of conte

  24. Slide 24: Group balance sheet overview

    Group balance sheet overview (RM mn) FY16 FY17 (RM mn) FY16 FY17 Non-current assets 4,885 4,508 Non-current liabilities 4,348 3,573 Property, plant and equipment 2,109 1,824 Payables 649 495 Other non-current assets 2,776 2,684 Borrowings 3,616 2,981 Other non-current liabilities 84 97 Current asset

  25. Slide 25: Debt Profile

    Debt Profile Total borrowings (RM mn) Details of borrowings Finance lease RM term loan USD term loan  As at 31 October 2016, outstanding principal US dollar term loan stood at US$247.5mn. The seventh principal repayment of USD24.75mn (RM74.72mn) is scheduled to be paid on 8 December 2016  Fully he

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