A financial analysis on Astro's performance 2014
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Transcript of A financial analysis on Astro's performance 2014
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AN ANALYSIS OF ASTRO’S PERFORMANCE
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BACKGROUND AND COMPANY PROFILE1
PRESENTATION OUTLINE
PRODUCTS AND SERVICE OFFERINGS2
HUMAN CAPITAL AND CORPORATE SOCIAL RESPONSIBILITY
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FINANCIAL REVIEW4
MARKET ANALYSIS AND MOVING FORWARD PLANS
5
CONCLUSION6
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BACKGROUND AND COMPANY PROFILE
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BACKGROUND
wholly-owned subsidiary of Astro All Asia Networks plc.and operated by MEASAT Broadcast Network Systems.
Subsidiary of Astro Malaysia Holdings Berhad Operations are located at:-
Bukit Jalil Kuala Lumpur Cyberjaya
Started operations in 1996, comprised of 22 televisions & radio platforms. 1995,MEASAT launched ASTRO After the launch of the MEASAT-1 satellite as part of Malaysia’s
commercialization of space, Astro commenced broadcasting in 1996 over 3.1 million residential pay-TV subscribers in Malaysia
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CORPORATE STRUCTURE
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ORGANISATION CHART
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• Tun Dato’ Seri Zaki Bin Tun AzmiIndependent Non-Executive Chairman
Former Chief Justice of Malaysian Courts
• Augustus Ralph Marshall Non-Independent Non-Executive Deputy Chairman
Associate of the Institute of Chartered Accountants in England and Wales and a member of the Malaysian Institute of Certified Public Accountants.
• Dato' Rohana Binti Tan Sri Datuk Haji Rozhan Executive Director/Chief Executive Officer
financial, marketing and business management
• Chin Kwai Yoong Senior Independent Director
Director of Deleum Berhad, Genting Berhad and Fraser and Neave Holdings Berhad (all listed on Bursa Securities).Director of Bank Negara Malaysia.
BOARD OF DIRECTORS
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• Dato' Rohana Binti Tan Sri Datuk Haji Rozhan
Executive Director/Chief Executive Officer
Member of Chartered Institute of Management Accountants, UK and Malaysian
Institute of Accountants. She has also completed the Advanced Management
Programme at Harvard Business School, US.
• Liew Swee Lin - Chief Commercial Officer
Master of Science (MSc) in International Marketing from University of Strathclyde,
UK and is an accredited Certified Financial Planner (CFP, US).
• Raymond Tan - Chief Investment Officer
Member of the Institute of Chartered Accountants Australia and a Fellow of the
Financial Services Institute of Australasia.
• Grace Lee Hwee Ling - Group Financial Controller
Australian Certified Practising Accountant, a Certified Information Systems Auditor (CISA, US) and is Certified in the Governance of Enterprise IT (CGEIT, US).
MANAGEMENT TEAM
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1996
Through the launch of the MEASAT-1 satellite, MBNS, one of our wholly owned subsidiaries, commenced digital DTH satellite pay-TV services with 22 TV channels and 5 radio stations
• Introduced format radio programming, the
first broadcaster to do so in Malaysia
1997• MBNS was granted a renewable 25-year broadcasting
licence for the provision of broadcasting services in Malaysia, with exclusivity on DTH satellite TV services
until 2017 and non-exclusivity until 2022
2003Surpassed 1 million residentialpay-TV subscribers
2007• Surpassed 2 million residential pay-TV subscribers• Introduced Astro On DemandMalaysia’s First TV NVOD service
2009• launched the Astro B.yond initiative which comprises hybrid DTH & broadband –enabled STBs and distribution platform to provide HD services • Won the “CASBAA Chairman’s Award” for our outstanding contribution to the pay tv industry in the region
2010• Introduced the first 3D
broadcast in Malaysia & Southeast Asia for 2010 FIFA World Cup
• Launched the Astro B.yond PVR service • Received the “Gold” award in Media and Entertainment category at the Putra Brands Awards 2010,Malaysia’s premier consumer brand awards
2012• Launched NJOI, Malaysia’s first non-subscription based
DTH satellite TV & Received the “Brand of the Year” and the “Gold” awards in the Media & Entertainment category at the Putra Brand Awards 2012, Malaysia’s
premier consumer brand awards • Launched AOTG, our entertainment service for tablets smartphones & PCs, as well as broadband-based VOD• Astro Malaysia Holdings Berhad was listed on the Main Market of Bursa Securities
KEY MILESTONE
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PRODUCTS AND SERVICE OFFERINGS
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OVERVIEW OF ASTRO PRODUCTS OFFERINGS
Note : MEASAT SatellitesAs of July 2014, Astro customers are currently using two MEASAT satellites to receive channels, MEASAT 3 and MEASAT 3A. MEASAT 3 satellite only provides SD channels. MEASAT 3A satellite provides only HD channels (Maximum HD channels: Approx. 37 HD channels)
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OVERVIEW OF ASTRO CHANNELS
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HUMAN CAPITAL AND CORPORATE SOCIAL RESPONSIBILITY
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Astro is driven by over 4,700 strong talent with 80% coming from the young aged group population
8 of 10 workforce aged below 39 years old
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CORPORATE SOCIAL RESPONSIBILITY
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FINANCIAL REVIEW
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ASTRO: 4 YEAR FINANCIAL PERFORMANCE
Jan 31 2011 Jan 31 2012 Jan 31 2013 Jan 31 2014
Operating Results (RM Million)
Total Revenues 3,378.30 3,846.70 4,265.00 4,790.70Gross Income 1,470.00 1,634.00 1,655.00 1,769.00 Profit Before Tax 1,007.80 869.4 574.9 569.2Net Income 748.1 629.1 418 448
Key Balance Sheet Data (RM Million)
Property, Plant, Equipment 1,427.50 1,654.20 1,915.80 2,157.00Total Assets 3,269.40 6,513.80 6,517.80 7,103.50Total Liabilities 2,118.50 6,022.40 6,001.70 6,486.40Total Equity 1,150.90 491.4 516.1 617.1
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ASTRO: 5 YEAR FINANCIAL PERFORMANCE
Jan 31 2011 Jan 31 2012 Jan 31 2013 Jan 31 2014
Share Information
Per share (sen)
Basic Earnings 0.50 0.41 0.22 0.09
Gross Dividend - 0.15 0.10 0.08
Share Price as at financial year end (RM) - 2.71 2.94 3.00
Financial Ratios
Return on Revenue 0.22 0.16 0.10 0.09
Return on Equity 1.52 1.22 0.68 0.73Return on Total Asset 1.03 0.59 0.65 0.67Debt to Equity Ratio 1.84 12.26 11.63 10.51
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ASTRO: 4 YEAR FINANCIAL PERFORMANCE ANALYSIS
Jan 31 2010 Jan 31 2011 Jan 31 2012 Jan 31 2013 Jan 31 20140
1000
2000
3000
4000
5000
6000
Revenue (RM Million)
Operating Results (RM Million) Total Revenues
Jan 31 2011 Jan 31 2012 Jan 31 2013 Jan 31 20140
1000
2000
3000
4000
5000
6000
7000
8000
Total Asset
Key Balance Sheet Data (RM Million) Total Assets
Jan 31 2010 Jan 31 2011 Jan 31 2012 Jan 31 2013 Jan 31 20140
200
400
600
800
1000
1200
Profit Before Tax (RM Million)
Operating Results (RM Million) Profit Before Tax
Jan 31 2011 Jan 31 2012 Jan 31 2013 Jan 31 20140
1000
2000
3000
4000
5000
6000
7000
Total liabilities
Key Balance Sheet Data (RM Million) Total Liabilities
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ASTRO: 2014 FINANCIAL SUMMARY
FY 2013 FY 20144,000.004,100.004,200.004,300.004,400.004,500.004,600.004,700.004,800.004,900.00
Revenue (RM Million)
RevenueLinear (Revenue) FY 2013 FY 2014
405000
410000
415000
420000
425000
430000
435000
440000
445000
450000
Profit After Tax
Revenue up 12% from RM4,265 million to RM4,791 million
Profit After Tax up 7% from RM420 million to RM448 million
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ASTRO: 2014 FINANCIAL HIGHTLIGHTS
COMPREHENSIVE INCOME
Revenue was RM4,791 million, an increase of RM4,265 million or 12%
Profit After Tax increase 7% from RM420 million to RM448 million
FINANCIAL POSITION
Total assets increase by 9% from RM 6,517.80 million to
RM 7,103.50 Million
KEY RATIOS As at 31/12/2013 As at 31/12/2014
Return on Revenue (%) 0.10 0.09
Return on Equity (%) 0.68 0.73
Return on Total Asset (%) 0.65 0.67
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ASTRO STOCK PRICE AS AT 7th OCTOBER @4pm
Source : Malaysia Stock Business, 7th Oct 2014
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Consistently strong Free Cash Flow continues to exceed PAT…
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MARKET ANALYSIS AND MOVING FORWARD PLANS
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KEY FACTS AT GLANCE
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Nearly 2/3 Malaysian household penetration
4 out of 10 viewers choose ASTRO as compared to Free TV Air. Astro stands at 47% viewership share.
Average Revenue Per User increased by 3% in 2014.
Advertising income increased 15% growth steadily in 2014.
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OVERALL VIEW OF YoY PERFORMANCE
+ 30% + 18% + 33%
+ 13% +450%
Source : Astro Q4 FY2014, Jan2014
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Source : Astro Q2FY2015, September 2014
KEY HIGHLIGHTS OF 1H FY2015
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Source : Astro Q2 FY2015, Sept 2014
Strong revenue growth across all segments
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Source : Astro Q4 FY2014, June and Sept 2014
Local content remains as the key driver for the sustainable of Astro’s market leadership
Hit shows that exceeded 1 million viewership
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Source : Astro Q4 FY2014, March 2014
Strong and reputable brand - with Astro remains as the top of mind amongst Malaysians
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Sports channel i.e. FIFA world cup boosts up subscription in June 2014
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Launched of Bollywood movies on HD Channel as an additional offering targeting at Malay and Indian market segment
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Astro On The Go – Multiple platforms to engage and provide better consumer experience to consumers
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Astro to invest RM500 million for M3C satellite’s transponder capacity utilisation
The M3c satellite is expected to be launched by September 2015.
The additional transponders on the M3c satellite are expected to expand the group’s broadcasting capacity to support the transmission of additional high definition channels to its subscribers.
Upon completion of the utilisation of M3c transponders, Astro will have up to 161 standard definition channels and 114 high-definition channels in the future.
“The launching of the new channels will allow us to widen and deepen our relationship with our customers, existing as well as new ones”
– Astro’s CEO-
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Tied up deal with NBS Universal with more strong titles
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Strategic collaboration as an exclusive TV production service provider for world class Pinewood Iskandar Malaysia Studios
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HOME SHOPPING IS THE NEXT IN LINE….
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CONCLUSION
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AWARDS & RECOGNITIONS
AND MANY MORE….
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ASTRO is a worth company to invest…
1. Lead by a strong and experience Management team,
2. Reputable integrated consumer media entertainment service provider;
3. Strong and reputable brand;
4. Steady growth in all key indicators - market penetration, viewership share subscription base, revenue, dividend, generate strong cash flow etc.
5. Promising company to invest with bright long term returns, after the heavy capex investments. It will yield positive returns based on the deals made, and the upcoming Home Shopping business.
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The analyst view…
“Astro is an “attractive” investment due to a combination of the completion of its investment phase and its lagging share price performance. We maintain our view that the company remains one of the best proxies for Malaysia’s consumption growth story; that is, a young, rapidly urbanising population base, with an increasing propensity to consume amid rising
income levels”- Analyst from UBS
- (a global financial services company headquartered in Basel and Zurich)
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APPENDICES