Media Chinese International Ltd · HKEX:685
Media Chinese International — Shareholder Meeting (August 2019)
39 slides from Media Chinese International's shareholder meeting presentation, Aug 14, 2019
Slide 1: Media Chinese International Limited Annual General Meeting
Media Chinese International Limited Annual General Meeting 14th August 2019 Stock Code: (Malaysia) 5090 ; (Hong Kong) 685
Slide 2: Agenda
Agenda (1) Current Trends and Market Challenges (2) Financial Performance (3) Strategic Update (4) Outlook 1
Slide 3: Current Trends & Market Challenges
Agenda Current Trends & Market Challenges 2
Slide 4: Current Trends
Current Trends Market Disruption - Increased use of digital as compared to print - Migration of advertising dollars to digital Global Economic Uncertainty - US-China Trade War, Brexit, Tariff Wars Everywhere! Political uncertainty in Hong Kong & Malaysia Adex reductions in print advertising
Slide 5: Adex in Malaysia
Adex in Malaysia YTD Adex (Apr’18 to Mar’19) Total Adex (RM) Radio Cinema 3.6% 1.7% In-store Newspapers : 2,119m Magazines media 22.0% 0.4% Magazines : 53m 0.7% TV (FTA) Newspapers 22.8% TV (FTV) : 2,736m 17.6% Pay TV : 6,401m Radio : 432m 27.7% In-store media : 84m Pay TV Cinema 201m 53.2% Newspape
Slide 6: Total Newspapers Adex in Malaysia
Total Newspapers Adex in Malaysia -21.5% -16.9% -28.0% 1,200 900 In RM ‘million 600 -27.8% 300 0 Chinese English Malay Tamil Apr'18-Mar'19 Apr'17-Mar'18 Chinese English Malay Tamil Total (In RM 'm) (In RM 'm) (In RM 'm) (In RM 'm) (In RM 'm) Apr'18 - Mar'19 738.8 821.7 546.7 11.5 2,118.7 Apr'17 - Ma
Slide 7: Maintain Share of Chinese Newspapers Advertising Expenditure In Malaysia
Maintain Share of Chinese Newspapers Advertising Expenditure In Malaysia NEWSPAPERS ADEX FROM APRIL 2018 TO MARCH 2019 Others - West ENG Newspaper Malaysia 38.8% 3.3% MCIL Group 24.7% CHN Newspaper 34.9% Others - East BM Newspaper Malaysia 25.8% 6.9% Tamil Newspaper 0.5% Adex for Total Newspapers :
Slide 8: Adex in Hong Kong
Adex in Hong Kong YTD Adex (Apr’18 to Mar’19) Total Adex (HKD) Newspapers : 27,940m Others & 6.5% MTR Magazines : 4,699m 10.3% Newspapers 26.1% TV : 35,151m Desktop & Mobile Radio : 4,491m 22.1% Magazines Desktop & Mobile : 23,652m 6.2% 4.4% Others & MTR : 11,017m TV Radio 32.9% 4.2% Newspapers : -5
Slide 9: Market Challenges
Market Challenges Aging print readership Accelerating technological changes Changing media consumption behaviors Challenges in monetizing digital channels Tech giants like Facebook and Google continue to dominate Digital ADEX 8
Slide 10: Financial Performance
Agenda Financial Performance 9
Slide 11: Financial Performance - Group Results
Financial Performance - Group Results For the year ended 31 March (US$’ 000) 2019 2018 Turnover 285,560 284,963 Profit before impairment losses 11,440 18,981 Provision for impairment of goodwill, property, plant and equipment (17,977) (25,855) Loss before income tax (6,537) (6,874) Loss attributable
Slide 12: Financial Performance - Segment Results
Financial Performance - Segment Results For the year ended 31 March 2019 (US$ ‘000) Malaysia & Hong Kong, Publishing North other SEA Taiwan & & Printing Travel Total America countries PRC Sub-total Turnover 129,906 50,654 13,397 193,957 91,603 285,560 Segment (2,215) (3,394) (2,267) (7,876) 4,579 (3
Slide 13: Financial Performance - Financial Position
Financial Performance - Financial Position As at 31 March (US$ ‘000) 2019 2018 Total assets 249,581 331,757 Net assets 169,821 201,768 Cash and cash equivalents and short-term bank deposits 75,155 120,235 Shareholders funds 167,759 197,669 Net assets per share (US cents) 9.94 11.72 Loss per share (U
Slide 14: Dividends
Dividends FYE 2019 FYE 2018 First Interim Dividend (US cents) 0.18 0.25 Second Interim Dividend (US cents) 0.10 0.18 Total Dividend (US cents) 0.28 0.43 Dividend Pay-out Ratio (as a % of PATAMI) * 70% *50% Share Price as at 31 March RM0.22 RM0.37 Dividend Yield as at 31 March 5.20% 4.49% * % based o
Slide 15: Strategic Update
Agenda Strategic Update 14
Slide 16: Strategic Update: Our Strategic Priorities
Strategic Update Our Strategic Priorities:- • Protecting print revenue • Growing audiences • Growing digital business • Managing costs 15
Slide 17: Continued Improving the Quality of Content
Continued Improving the Quality of Content Sin Chew Daily Introduced monthly edition “Young and Promising” page 《 後生可為 》 To share the stories of young people venturing in start ups and their passionate way to embracing the world. Meanwhile, to connect those creative young people to investors who are
Slide 18: Revenue Diversification
Revenue Diversification Event Business The Group organises various activities, exhibitions and awards such as “Sin Chew Education Awards”, “Malaysia Health and Wellness Brand Awards”, “Sin Chew Business Excellence Awards” and Nanyang Siang Pau - “Golden Eagle Award”, etc. Sin Chew Business Excellenc
Slide 19: Revenue Diversification (cont'd)
Revenue Diversification (cont’d) Launch of “SIN CHEW Membership Program” 18
Slide 20: Developing More Products
Developing More Products Ming Pao Education Publications • Published “GIFTED Education Supplement” in May 2019, “STEM Education Supplement” and “HK 18 Districts Primary STEM Schools” in Oct 2018. • Awarded by The Association of Heads of Primary Schools, The Hong Kong Council of the church of Christ
Slide 21: Developing More Products (cont'd)
Developing More Products (cont’d) • Launched “Deriving Stars Easily Series 奪星易系列” educational reference books for senior secondary school students to prepare for Hong Kong Diploma of Secondary Education Examination (HKDSE). Published subjects such as Liberal Studies; Chinese Language; Business, Acco
Slide 22: Developing More Products (cont'd)
Developing More Products (cont’d) • Funded by the “Fung Yiu King Charitable Foundation”, co-operated with “The Hong Kong Jockey Club Centre for Suicide Research and Prevention (CSRP)” and “The Comfort Care Concern Group” to publish “Life Education learning and teaching kits” for secondary school tea
Slide 23: Achievement in Digital Reach Out
Achievement in Digital Reach Out Malaysian Operations +23.6% +20.4% Digital 1 Audience Print 2 Audience 18.6m 1.8m 18.6 m 20.4 m Digital Total Audience 3 Audience growth 4 1 Digital audience is based on unique visitors as at Jun 2019. 2 Print audience is based on Q4 2018 readership (period from Jan
Slide 24: Achievement in Digital Reach Out (cont'd)
Achievement in Digital Reach Out (cont’d) Hong Kong Operations May 2018 May 2019 Vs 2018 Ming Pao News Channels 2,167,000 2,353,000 +9% (Desktop aged 6+ & Mobile aged 18+) (Hong Kong only) Source : comScore Jun 2018 Jun 2019 Vs 2018 news.mingpao.com 3.0M 4.4M +46% News App 94K 0.14M +47% ol.mingpao.
Slide 25: Performance of the Group's Digital Business
Performance of the Group’s Digital Business MCIL Group % Digital Revenue over Total FY2019 Print Revenue FY2018 +7.6% FY2017 +6.3% FY2016 +4.6% +2.9% FY2015 24
Slide 26: Performance of the Group's Digital Business (cont'd)
Performance of the Group’s Digital Business (cont’d) MCIL Group Annual growth % in Digital FY2019 Revenue over the years FY2018 +10% FY2017 +25% FY2016 +38% +8% FY2015 25
Slide 27: Implementation of Convergent Media Integration Platform
Implementation of Convergent Media Integration Platform New Sin Chew News App Rolled out “Digital First” transformation program in Sin Chew Daily to simplify the newsroom processes in 2019. Launched new Sin Chew News App. Enabled a convergence of both print and digital editorial operations, an
Slide 28: Driving Audience Growth
Driving Audience Growth E-Paper News App New E-paper News App is now available at App Store and Google Play for both mobile and tablet devices. The accumulative download was close to 5,000 since its launch in Feb 2019. 27
Slide 29: Focusing on and Investing in Video
Focusing on and Investing in Video Digital Development (Influencers’ Videos@ YouTube) Started extending video coverage to YouTube Channel, so as to outreach different digital users and test out the ad revenue potential from YouTube channel. Playlist (【資訊】品味葡萄酒、食譜烹飪、美酒 佳餚）was created with videos from
Slide 30: Focusing on and Investing in Video (cont'd)
Focusing on and Investing in Video (cont’d) Pocketimes Online Video Portal Attained highest video views of 9.7 million monthly in April 2019. Extended its business model by creating more offerings and marketing solutions via our expertise in storytelling. Launched extensive live streaming election p
Slide 31: Focusing on and Investing in Video (cont'd)
Focusing on and Investing in Video (cont’d) With UV of 8.5 million and PV of 184 million, China Press continues to lead in the Chinese online segment. (Source: Google Analytics, figures based on June 2019) In its efforts to enhance the content further, China Press has set up a studio in April 2019 a
Slide 32: New Advertising Offerings
New Advertising Offerings WAW Creation WAW Creation, a creative arm of Ming Pao Newspapers Limited to provide a diversify array of professional services in content marketing to the advertising clients. 31
Slide 33: New Advertising Offerings (cont'd)
New Advertising Offerings (cont’d) Creative ideas, professional and one-stop services in content marketing is provided to customers from different aspects. Banking and Finance Life and Style Citi x AASTOCKS跨平台股票交易 千色29週年樂購物 Peach Blossom Collection Citi Bank Citi Store Pandora Education 澳門20道風味 涂毓麟(
Slide 34: New Advertising Offerings (cont'd)
New Advertising Offerings (cont’d) 連線大中華之海南海口 The first China project under the theme of 連線大中華 was kicked off in May 2019. The development of Haikou was analyzed from different angles. Government officer and businessman shared their point of view in economic development, a Hong Kong people who live
Slide 35: Managing Costs
Managing Costs • Rationalisation of regional plants • Rationalisation of branch offices • Cessation of certain loss-making publication titles 34
Slide 36: Outlook
Agenda Outlook 35
Slide 37: Outlook Statement FY 2020
Outlook Statement FY 2020 The Group expects the operating environment for the next financial year to remain challenging. The unsettling trade tension between China and the USA adds to the uncertainty of the global economy and may have an adverse impact on the Group’s performance for the coming year.
Slide 38: Thank You
Thank You 37
Slide 39: Forward Looking Statements
Forward Looking Statements This presentation includes certain forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Media Chinese International Ltd expects or anticipates will or may occur in the future are forward
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