st quarter fy19 results - acmkentico-prd.s3.amazonaws.com · stbs/odus are owned by astro, and are...

1st Quarter FY19 Results

6th June 2018

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 express forecasts, expectations and projections such as forecasts, expectations and projections in relation to new

products and services, revenue, profit, cash flow, operational metrics etc.

These statements (and all other forward-looking statements contained in this document) are not guarantees of future performance and are

subject to risks, uncertainties and other factors, some of which are beyond Astro’s control, are difficult to predict and could cause actual

results to differ materially from those expressed or implied or forecast in the forward-looking statements. These factors include, but are

not limited to, the fact that Astro operates in a competitive environment that is subject to rapid change, the effects of laws and

government regulation upon Astro’s activities, its reliance on technology which is subject to risk of failure, change and development, the

fact that Astro is reliant on encryption and other technologies to restrict unauthorised access to its services, failure of key suppliers, risks

inherent in the implementation of large-scale capital expenditure projects, and the fact that Astro relies on intellectual property and

proprietary rights which may not be adequately protected under current laws or which may be subject to unauthorised use.

All forward-looking statements in this presentation are based on information known to Astro on the date hereof. Astro undertakes no

obligation publicly to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation has been prepared by Astro. The information in this presentation, including forward-looking statements, has not been

independently verified. Without limiting any of the foregoing in this disclaimer, no representation or warranty, express or implied, is made

as to, and no reliance should be placed on, the fairness, accuracy or completeness of such information. Astro and its subsidiaries,

affiliates, representatives and advisers shall have no liability whatsoever (whether in negligence or otherwise) for any loss, damage, costs

or expenses howsoever arising out of or in connection with this presentation.

Disclaimer

1 | 1QFY19 results

• ARPU of RM99.6

• 39% to 44% TV Adex share

• 76% to 69% Radex share

• 5.2mn to 5.5mn households

• 71% to 75% household penetration

• 1.7mn Astro GO registered users

• 1.4mn Go Shop registered customers

• 3.5mn Tribe total downloads

• 6.7mn average monthly unique visitors

to digital assets

• Reach and scale via households and

individuals

• Content IPs and verticals

• Digital and commerce ventures

• Operational efficiencies

• Talent – on-air and digital

GROW

MONETISE

LEAD

INVEST

• 76% TV viewership share driven by

vernacular content

• 869K connected STBs

• 16.5mn weekly radio audience

1Q FY19 key performance highlights

2 | 1QFY19 results

Revenue -1%RM1.33bn→ RM1.31bn

FCF of RM338mn

-15% (from 399mn)

193% of PATAMI

Adex +6%RM143mn→ RM151mn

Norm. PATAMI -5%RM188mn→ RM179mn

EBITDA +0.2%RM460mn→ RM461mn

NB

(1) TV household data sourced from the

Department of Statistics Malaysia and

Media Partners Asia

(2) Household penetration comprises

residential Pay-TV customers and NJOI

customers

(3) Viewership share is based on DTAM

deployed by Kantar Media

(4) Audience measurement is provided by

GfK. Share of radex is based on internal

estimates

(5) Average monthly unique visitors to

Astro’s digital assets as sourced from

comScore

(6) Connected set-top boxes (STBs) are

connected to the internet and have

access to Astro’s On Demand library of

content

(7) Normalised PATAMI excludes post-tax

impact of unrealised forex gain/(loss)

1Q FY19: (RM 4m), 1Q FY18: RM 8m

(8) Data presented are for 1Q FY19

(9) Numbers may not add up due to

rounding differences

1Q FY19 year-on-year overview

3 | 1QFY19 results

Highlights 1QFY18 1QFY19 Growth

TV households (000s)(1) 7,234 7,355 2%

TV household penetration(2) 71% 75% 4pp

TV customer base (000s) 5,153 5,484 6%

Pay TV ARPU (RM) 100.8 99.6 -1%

Astro TV viewership share(3) 76% 76% -

Radio listenership (mn) (4) 15.6 16.5 6%

Average monthly unique visitors (mn)(5) 6.2 6.7 8%

Connected STBs (000s) (6) 572 869 52%

Revenue (RM mn) 1,326 1,311 -1%

EBITDA (RM mn) 460 461 +0.2%

EBITDA margin 35% 35% -

Normalised PATAMI (RM mn) (7) 188 179 -5%

FCF (RM mn) 399 338 -15%

EPS (RM sen) 3.8 3.4 -11%

Digital Assets

190 channels

• Largest Pay-TVoperator in SEA

• Serving 5.5mn households

• 75% household penetration

• 44% TV adex share• 869K connected STBs

• 6.7mn avg monthly unique viewers across over 25 digital assets

• Tribe & Tamago –regional plays with 7.0mn downloads cumulatively

• 24/7 shopping

experience

Malaysia &

Singapore

• 1.4mn registered

customers

• 11 radio brands

• 16.5mn weekly

audience

• #1 highest rated

stations across 4

key languages

• 69% radex share

ASEAN content & consumer company

11 radio brandsOTT (Over-The-Top) Service

4 | 1QFY19 results

TV DIGITAL RADIO COMMERCE CONTENT

• Content producer &

aggregator

• Investing in content

verticals with

regional reach

• Produced 12K hours

of content in FY18

1.21.7

1Q FY18 1Q FY19

3.64.7

1Q FY18 1Q FY19

127 203

1Q FY18 1Q FY19

Avg. Monthly Viewing (mins)App Downloads (1) (mn)Registered Users (1) (mn)

+43%+31%

+60%

Note:

(1) Cumulative count since inception Cumulative

(2) Connected boxes are set-top box connected to the internet and have access to On Demand library of content

572869

1Q FY18 1Q FY19

Total Connected STBs (1)(2)

(000s)

+52%

2

11

1Q FY18 1Q FY19

Total OD Downloads (mn)

+450%

246374

1Q FY18 1Q FY19

Avg. Weekly Viewing (mins)

+52%

5 | 1QFY19 results

Growing Viewing on Multi-screens and On Demand…

24%

76%

TV Viewership Share

3:48 3:37

2:08 2:07

1Q FY18 1Q FY19

Avg. Time Spent/Day

13.512.8

7.6 7.0

1Q FY18 1Q FY19

Avg. Daily Viewers (mn)

Astro FTA

190channels

73Astro-branded

channels

31channels

NB

(1) Number of channels as at 1Q FY19

(2) Target Audience: Kantar Media, Dynamic TV Audience Measurement (DTAM). All Astro Pay-TV viewers.

-5%

-8%

-5%

-1%

Pay-TV NJOI

6 | 1QFY19 results

…while maintaining our TV viewership share

1,121 1,140 1,149 1,107 1,076

143 208 175

196 151

62

70 73 85

84

1Q FY18 2Q FY18 3Q FY18 4Q FY18 1Q FY19

Go Shop

Adex

Subscription/Others

Revenue resilient underpinned by growth drivers

35%

6%

(4%)

(RM mn)Total revenue YoY growth(2)

NB

(1) Disclosed as Subscription revenue and Other revenue in our financial statements, includes revenue streams such as TV

subscription, licensing income, programme sales, NJOI revenue and theatrical revenue

(2) YoY refers to 1Q FY18 vs. 1Q FY19

(3) Numbers may not add up due to rounding differences

(1%)

(1)

1,326

1,420 1,397

7 | 1QFY19 results

1,388

1,311

71

120

96 112

83

72

89

79

84

68


TV Radio

1Q FY18 1Q FY19

Adex growth amid industry contraction

Advertising income (RM mn) YoY growth(2)

(6%)

17%

(1)

Total Malaysia

gross ADEX YoY

growth

OVERALL ADEX

(1%)

RADIO

2%

TV

3%

(2)(5)

69%

1Q FY18 1Q FY19

Share of Radex

Share of TV adex

Radio listeners (mn) (3)

76% 76%

1Q FY18 1Q FY19

Astro TV

viewership share (4)

NB

(1) Advertising income is net of commissions and discounts. Digital adex is included in TV and Radio adex.


(3) Audience measurement is provided by GfK. Share of radex is based on internal estimates

(4) Viewership share is based on DTAM deployed by Kantar Media. Share of TV adex is based on Astro and Group M’s estimates

(5) Malaysia gross adex figures are based on Nielsen and Group M’s data


15.66% 16.5

143

39%44%

1Q FY18 1Q FY19

208

175

8 | 1QFY19 results

196

151

76%

405 353 447 408 352

624 690

706 778

665


Content costs Other expenses

1,017

Cost optimisation remains a key focus

(RM mn)Total operating expenditure

NB

(1) Content costs are disclosed as part of cost of sales in our financial statements

(2) Other expenses include marketing and distribution costs, administrative expenses, STB installation and smartcard costs,

depreciation and amortisation, as well as maintenance costs


34%

Content cost as % of TV

revenues

1,029 1,043

28%

1,153

36%

9 | 1QFY19 results

1,186

33% 30%

NB



Applying ROI discipline in capex spend

2% 2%as % of

revenue

(RM mn)

54 45

1Q FY18 1Q FY19

3%4%as % of

revenue

(RM mn)

Key capex investments in FY19 include:

▪ Technology infrastructure

▪ Customer experience

▪ Product and service upgrading

Capex STBs

▪ STBs/ODUs are owned by Astro, and are capitalised

▪ STBs/ODUs are conservatively amortised over 3 years;

note that actual useful life is typically greater than 5

years

▪ Discretionary 36 month bullet payment vendor

financing is available for Astro for STB/ODU purchases

▪ RM703mn of vendor financing recorded in payables, of

which RM283mn is current and RM420mn is non-

current

10 | 1QFY19 results

24 27

1Q FY18 1Q FY19

Strong and stable cash generation capabilities

508 452

109

115

399 338

Cash fromoperations

Cash frominvesting

Free cash flow Cash fromoperations

Cash frominvesting

Free cash flow(2) (3) (3)(2)

204% 193%as % of PATAMI

(RM mn)

1Q FY18 1Q FY19

Free cash flow

…enabling significant flexibility on capital management and dividend policy

NB


(2) Excludes investments, disposals and maturities of unit trust and money market funds

(3) Excludes repayments of vendor financing and payments of finance leases, which are categorised as cash from financing

for consistency with Bursa disclosure


11 | 1QFY19 results

▪ Leveraging on invested capital, AMH continues to be highly cash generative

▪ The Board of Directors of AMH has declared a quarterly dividend of 2.50 sen per share for 1Q FY19

▪ Quarterly dividend entitlement and payment dates: 25 June 2018 and 6 July 2018 respectively

Quarterly dividend announcement

12 | 1QFY19 results

Connected STBs(+52% YoY)

869k

11mnOD Downloads

(+450%) YoY

Multiscreen

(Connected STBs

& Astro Go)

1 in 3

Connected STBs

average weekly

viewing hours

48 hrs

Multiscreen

average weekly

viewing hours

52 hrs

Connected STBs drive content consumption

and non-linear viewing

NB


(2) Connected set-top boxes (STBs) are connected to the internet and have access to Astro’s On Demand library of content

(1)

13 | 1QFY19 results

(1)

Driving prepaid revenue via NJOI and NJOI Now

14 | 1QFY19 results

Over 32,000 NJOI Prepaid touchpoints are

now available through e-Pay, 7-Eleven,

Cosway and selected online banking!

31TV Channels

20Radio Channels

Wide range

of premium prepaid

offerings

18 free channels

>4,000 hours of

SVOD

15 | 1QFY19 results

Content differentiation driving sales

NB

(1) Cumulative as of 1Q FY19

62 84

1Q FY18 1Q FY19

Revenue(1)(RM mn)

35%

1,036 1,418

1Q FY18 1Q FY19

37%

Registered Customers(1)

(‘000)

• Introduction of Channel 120 has

increased traction

• Simulcast events and increasing live

hours from 4 to 6.5 hours have driven

brand awareness leading to improved

sales

• Launch of Malay New Arrival

programme and Go News segment for

latest promotion announcement

• Content differentiation initiatives such

as branded content and tactical events

have driven content viewership and

sales

Malay (Ch. 118 & Ch. 120) & Chinese language

(Ch. 303) home shopping channelsNo.1

16 | 1QFY19 results

Expanding regionally via Tamago and Tribe

0

3.5

1Q FY18 1Q FY19

Total downloads(1) (mn)

NB

(1) Cumulative as of 1Q FY19

• Launch of Telkomsel

partnership which

provides us access to

over 20mn Videomax

customers

• Release of two Original

Series Dosa and

Mandatori during

Telkomsel launch

• Original collaboration

shows between

Indonesia and ASEAN

countries

In Feb 2018, Tamago

launched Ka-Chinggg, its

biggest contest to-date to

give its users a chance to

win a share of RM1mn

A live streaming app

with interactive

features focusing on localised ASEAN

user generated content,

virtual gifting and real

interactions

1.3

3.5

1Q FY18 1Q FY19

Total downloads(1) (mn)

+175%

44.4 46.1

129

4.9 5.3 8.8

Mar-18 Apr-18 May-18

UsersScreenviews

3.6 3.98.1

Mar-18 Apr-18 May-18

Page Views

Users

Awani app

17 | 1QFY19 results

www.astroawani.com

(In ‘000)

(In million)

17.0 18.2

42.5(In million)

+134% +180%

+108%

+66%

9.2 mn on 10 May834K viewson 1-15 May

Traffic surged on Astro GO

and digital platforms

Round the clock extensive coverage as Malaysians cast their votes in the recently held General Elections

1.4 mn on 9 May

Record breaking TV viewership for GE14

Unique TV Viewers

7.3 mnviews

Across all Gempak

platforms

18 | 1QFY19 results

Viewership

3.3 mnTV ratings

DTAM Kantar Media

Digital

362Kviews

On Demand

213KTitle views

On Ground

1K

On Ground

2KFans at meet &

greet session

Across all Gempak

platformsFans at book

signing session

Overtaking last year’s highest rated drama

On Demand

332KTitle views

DigitalViewership

3.1 mnTV ratings

DTAM Kantar Media

Produced in 2006 and

finally released on 5th

April 2018 across

130screens

Dain Said’s directorial debut and

starring Umie Aida and

Faizal Hussein

Viral video #perempuankebayamerah

reached

20 mn views

in 24 hours

Total box office

revenue of

RM11mnand growing

Planned theatrical

release in

Indonesia in August

19 | 1QFY19 results

Dukun - the most anticipated movie since 2006

NUSANTARA KIDS ESPORTSPremium Nusantara

original series & movies

Transmedia kids and animation

content with Asian values

The next wave of sports

for the millennials

HORRORAsian horror original series

and movies

• Partner with top Indonesian

talents

• Polis Evo 2 slated for this

year

• Collaborate with Malaysian

animation studios

• Adapt/dub for regional &

global distribution

• Licensed content to Indonesia

& Singapore (Didi & Friends),

Amazon USA (Cam & Leon) and

Indonesia (Oma & Hana)

• Collaborate with top

production houses in SEA

• Series was licensed to 7

countries

• BOO channel was distributed to

Singapore, the Philippines,

Vietnam & Myanmar

• Landed in 8 countries

• Recruit regional influencers

as key talents

• Collaborate with the world

top game developers

• Partner regional event

organisers for regional

tournaments

To win over IndonesiaTo own monetisable regional

kids IPS

To develop and distribution

Asian-centric horror IPSLand grab with the Millennials

Deepening Content Ownership and Going Regional

20 | 1QFY19 results

First Time Ever Coverage

Showcased 2 major sporting events

1.4 mnunique viewers

47KAstro GO views

TV4 dedicated channels

for around the clock

coverage

OTTSimulcast Olympics

exclusive channels

Source: TV viewers is based on Kantar Media DTAM. AG is based on Conviva.

21 | 1QFY19 results

862KAstro GO views

TV6 dedicated channels

for around the clock

coverage

OTTSimulcast Olympics

exclusive channels

9.3 mnunique viewers

( +15%)

Most Watched Commonwealth Games Ever

World Cup 2018 – all 64 matches live on HD

14 Jun – 15 Jul41matches on

Astro Arena open

to all subscribers

Available on Astro

GO and NJOI now to

non-Astrosubscribers

On Demand All matches,

highlights

and magazine

shows

22 | 1QFY19 results

64matches live on

Astro

37 Exclusive

1st VR 180° live stream

and 360°VOD

Exclusive content

via

digital platform

Appendix

(RM mn) 1Q FY18 1Q FY19

EBITDA 460 461

Margin % 35% 35%

Depreciation and amortisation (160) (165)

EBIT 301 296

Margin % 23% 23%

Finance income 20 12

Finance cost (51) (74)

Share of post tax results from investments 0 0

PBT 270 235

Tax expense (77) (61)

Tax rate % 29% 26%

PAT 192 174

PATAMI 196 175

Margin % 15% 13%

Normalised PATAMI 188 179

Margin % 14% 14%

NB

(1) Depreciation and amortisation

excludes the amortisation of film

library and programme rights which is

expensed as part of content costs (cost

of sales)

(2) Normalised PATAMI excludes post-tax

impact of unrealised forex gain/(loss)

1Q FY19: (RM 4m), 1Q FY18: RM 8m

(3) Numbers may not add up due to

rounding differences(2)

(1)

PAT reconciliation

24 | 1QFY19 results

(RM mn) FY18 1Q FY19

Non-current assets 4,807 4,715

Property, plant and equipment 2,401 2,319

Other non-current assets 2,406 2,396

Current assets 2,041 2,284

Receivables and prepayments 1,012 903

Cash and bank balances(1) 962 1,312

Other current assets 67 69

6,848 6,999

(RM mn) FY18 1Q FY19

Non-current liabilities 3,791 4,107

Payables 390 420

Borrowings 3,319 3,601

Other non-current liabilities 82 86

Current liabilities 2,404 2,208

Payables 1,653 1,486

Borrowings 646 651

Other current liabilities 105 71

Shareholders’ equity 653 684

6,848 6,999

Net debt / LTM EBITDA: 1.6x

NB

(1) Includes money market unit trusts


Balance sheet overview

25 | 1QFY19 results

1,593

615

303

1,054

687

1QFY19

Finance lease SFCL

Unrated MTN RM term loan

USD term loan

(RM mn)Total borrowings

Total borrowings of RM4,252mn is

net of debt issuance costs (RM6mn)

Debt profile

USD term

loan

RM term

loan

Finance lease

(primarily

satellite

transponders)

▪ As at 30 April 2018, outstanding principal US dollar term loan stood at USD173.3mn

▪ First drawdown date on 8 June 2011, amortised repayment schedule with final maturity

date on 8 June 2021. Average life: 7 years

▪ Fully hedged via cross currency interest rate swap at an exchange rate of USD/RM3.0189

and an all-in interest rate of 4.19% p.a.

▪ The tenth principal repayment of USD24.75mn (RM74.72mn) is scheduled to be paid on 8

June 2018

▪ As at 30 April 2018, total outstanding principal RM term loan stood at RM1,050mn.

▪ First drawdown date on 19 May 2011, amortised repayment schedule with final maturity date

on 19 May 2021. Average life: 7 years

▪ All-in interest rate (post-hedging) for the hedged portion of RM787.5mn is 5.47% p.a. while

balance unhedged of RM262.5mn stood at 4.89% p.a. (variable floating rate based on cost of

funds)

▪ The eleventh principal repayment of RM150mn is scheduled to be paid on 19 November 2018

▪ Finance lease related to lease of Ku-band transponders on MEASAT-3, MEASAT-3A and

MEASAT-3B. Payment arrangement for the remaining contractual years for M3 and M3A

have been redenominated into Ringgit at USD/RM3.0445 w.e.f. 21 May 2013. The unhedged

portion of the finance lease related to M3B is USD287mn

▪ Effective interest rate: 6.2%, 4.6%, 12.5% and 5.6% p.a. for

M3, M3-T11, M3A and M3B respectively, average life: 15 years

Unrated MTN

▪ The first series of notes under the unrated medium-term notes (MTN) programme of up to

RM3.0bn in nominal value for up to 15-year tenor was issued on 10 August 2017. The

issuance was for RM300mn with a 5-year tenor at fixed rate of 5.30% p.a. with semi-annual

coupon payment

▪ Bullet repayment on 10 August 2022

26 | 1QFY19 results

Synthetic

Foreign

Currency

Loan (SFCL)

▪ The USD150mn SFCL facility of 4 years 11 months tenor amounted to RM612.7mn upon

conversion at the agreed exchange rate of USD/RM4.0850

▪ Drawn down in 2 tranches of RM306.4mn each on 29 December 2017 and 28 February 2018

respectively, at a fixed rate of 4.80% p.a. with quarterly interest payment

▪ Bullet repayment on 29 November 2022

Thank you

st quarter fy19 results - acmkentico-prd.s3.amazonaws.com · stbs/odus are owned by astro, and are...

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