th quarter and full year fy17 results - acmkentico-prd.s3 ... · through targeted marketing and...

4th Quarter and Full Year FY17 Results

28th March 2017

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 | 4QFY17 results

• Go Shop grew revenue 38% YoY

• 70% to 73% Radex share

• 35% to 38% TV Adex share

• 4.8mn to 5.1mn customers

• 67% to 71% HH penetration

• 1.3mn to 1.7mn NJOI customers

• Content IPs/verticals

• Digitalisation & customer experience

• Operational efficiencies

• Reach & scale

Revenue +2%RM5.48bn → RM5.61bn

FCF of RM1.3bn +3%211% of PATAMI

Adex +10%RM640mn → RM705mn

GROW

MONETISE

LEAD

INVEST

PATAMI +1%RM615mn → RM624mn

Key highlights of FY17 performance

• 95% on B.yond STBs

• Vernacular content drives viewership

• 76% to 77% share of TV viewership

• 15.6mn radio listenership

• 912k Go Shop customers

2 | 4QFY17 results

EBITDA -6%RM1.94bn → RM1.82bn

Pay Premium

Pay

Pay-lite

Freemium

Serving households and individuals; multi-screens

SIGNATURE VERNACULAR IPs

SPORTS

BEST OF ON-DEMAND AND DAY/DATE(own all windows and screens)

• Exclusive content and box sets

• Premium window content

• Content portability

Households Individuals

• Repurpose for digital and millennials

• Best of linear, premium

live sports

• eSports for millennials

CinemaAstro First

Astro Best

On-DemandCatch-up

SVOD

TVOD

ESTBox-sets

PAYG

LINEAR EXCLUSIVES

Winning Malaysian consumers…

3 | 4QFY17 results

MAT churn (%)

9.4% 9.5% 10.0%10.9%

3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17

12.4%

…and serving 5.1mn households and 21mn individuals,

including 1mn Tribe registered users, across the region

3,534 3,550 3,504 3,493 3,443 3,467

1,163 1,268 1,395 1,481 1,579 1,654


Pay-TV NJOI

Households (000s)

11.9%

4 | 4QFY17 results

71%67% 69% 69% 70%66%

Household Penetration

OTT (Registered Users) (mn)

1.1

1.0

4QFY17 4QFY17

Astro GO Tribe

23%

77%

Viewership Share

(47%)

3:51 3:55

2:01 2:01

FY16 FY17

Avg. Time Spent/Day

13.8 13.9

8.6 8.1

FY16 FY17

Avg. Daily Viewers (mn)

Astro FTA

Increase in viewership share, daily viewers & time spent…

+1pp

188channels

Pay-TV72

Astro-branded

channels

60HD channels

NJOI

28channels

NB (1) Number of channels as at 31 January

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

Period: FY16 vs FY175 | 4QFY17 results

Ready to scale regionally

.com.my

#1Leading local

online media on

Comscore

Best for

reaching Malay

audiences

Best for reaching

millennials &

digital natives

#1

#1

Local No. 1

…with growing flagship digital brands & services

6 | 4QFY17 results

93.2

96.0

99.099.3

100.4

FY13 FY14 FY15 FY16 FY17

ARPU (RM)

Gaining a higher share of the consumer wallet

7 | 4QFY17 results

NB (1) As a % of customers with B.yond STB

Upselling of value-added products and services remains a

key priority

Multiroom

409 406 405


412411 413

(000s)

960 964 968 958 928 909

372 400 418 429 442 454


Superpack/Superpack Plus Valuepack

(000s)VALUEPACK

1,890 1,938 1,939 1,924 1,902 1,961


(000s)

Penetration(1)

59%58% 59% 59% 59%831 877


(000s)

903 908 92555 59


62

(000s)

6262

1,781 2,132 2,307


(000s)downloads

2,633 2,870

96660% 62

3,139

8 | 4QFY17 results

3mnApp

downloads

203%Increase of

daily activities

in Android

• Migrated to new OTT platform with new enhanced user

interface

• Personalised recommendations, deep linking, enhanced user

experience, social share and overall app performance uplift

• Increase of daily active users by 35% on iOS and 203% on

Android

Astro GO: Entertaining fans anytime, anywhere

9 | 4QFY17 results

179mins

Average Weekly Consumption

14%+

vs FY16

2.3mnSessions

14.5mnScreen views

23kVOD titles,

16k hours of

VOD, 71 linear

channels

5.2mn 4.9mn

5.0mn

2.9mn

2.0mn

318k

210k

10 | 4QFY17 results

Breaking viewership records with our diverse IPs

Didi and Friends_TownHall_VT_MP4.mp4

MOST WATCHED SHOW

5.2mn VIEWERSHIP

MOST TALKED ABOUT SHOW

1mn CONVERSATIONS

Suri Hati Mr. Pilot, our highest-rated show of all time

#1MOST GOOGLED

DRAMA

4.6mnTOTAL DIGITAL VIEWS

46mnSOCIAL MEDIA

REACH

SOLD OUTGSC MEET & GREET

11 | 4QFY17 results

Didi & Friends

The Series – March

2017

— !

Didi & Friends

Playtown App:

#1 Astro App

Streaming, iTunes,

CD, DVD Release:

#1 Album

Retail &

merchandise:

Outsold Minions by

4x

English version

launchedAstro First

Karaoke Channel

Metrojaya Store,

The Curve

#1 in App, Music, TVContent Ratings

381mn Views

2.9mnViewership

394kSubscribers

#1 Range

Strong results from our first animation IP, Didi & Friends

12 | 4QFY17 results

Didi and Friends_TownHall_VT_MP4.mp4

Develop a collaborative & innovative culture

Organisation People Processes Technology

Inculcate mindset & skills to foster innovation

Design Astro-optimisedproducts & capabilities

Adopt cloud, advanced analytics & agile model

To be a Digital-First, Cloud-First, Mobile-First Entertainment & Lifestyle company that delivers exceptional customer experiences

Innovate & Diversify Revenue Streams

Expand Platform & Monetise

Capabilities

Agile Operating Model for Higher

Efficiency

Build New Digital Capabilities

Achieve

We are transforming our core business…

↓ Cost of Delivery - IT↑ Customer Acquisition

↑ Customer Satisfaction ↑Cross Selling ↑Speed to Market ↓Cost of Experimentation

↑ Automation

13 | 4QFY17 results

TV

NextGen TVIoT/Smart Homes

Content

Wholesale

AdexDigital

Homes and individuals

Mobile

Discretionary• TVOD/PPV

• Event passes

• P2P

• Digital tokens

• Gifting

Multi-PlayHome Connectivity

…and well-positioned to capture growth opportunities across

the industry

14 | 4QFY17 results

An integrated shopping platform with Malaysia’s first 24-hour Malay (Ch.

118) and Chinese language (Ch. 318) home shopping channels, phone, e-

commerce and m-commerce

In November 2016, Go Shop Singapore, a Mandarin-channel was

launched in partnership with Starhub on StarHub Channel 110

Go Shop Singapore will leverage on StarHub’s deep insight

into consumers’ media consumption and purchasing habits

to serve the sophisticated and affluent Singaporean market

Go Shop: Continued growth across Malaysia and Singapore,

revenues up 38% YoY

15 | 4QFY17 results

Go Shop is set to develop its own IP for Islamic

lifestyle products in FY18 as an example of its

product and branding differentiation strategy

PHILIPPINES

INDONESIA

16 | 4QFY17 results

Our OTT service, Tribe, strengthens our regional proposition

Through targeted marketing and strong partnerships across both the Philippines and Indonesia, Tribe has

reached close to 1 million registered users since launch

• Strong OOH branding efforts, targeted

digital marketing, and engaging on-ground

activities

• Tribe is actively exploring partnerships

with telcos to further enhance growth in

Indonesia

Strategic partnership with telco giant, Globe

Telecom, provides Tribe with access to:

• Distribution and brand presence in over 70

Globe retail stores nationwide

• Globe’s digital channels and social media

Both parties are actively exploring content

collaborations to further enhance proposition

to end users

17 | 4QFY17 results

Highlights FY16 FY17 Growth

TV households (000s)(1) 7,143 7,207 1%

TV household penetration(2) 67% 71% 4pp

TV household penetration (000s) 4,818 5,121 6%

Pay TV households (000s) 3,550 3,467 (2%)

NJOI households (000s) 1,268 1,654 30%

Pay TV gross adds (000s) 373 330 (12%)

MAT churn 10% 12% 2pp

Net adds (000s) 389 302 (22%)

Pay TV households (000s) 40 (83) (308%)

NJOI households (000s) 349 386 11%

B.yond STB penetration 93% 95% 2pp

ARPU (RM) 99.3 100.4 1%

Astro TV viewership share(3) 76% 77% 1pp

Radio listenership (mn)(4) 12.8 15.6 22%

Adex (RM mn) 640 705 10%

Revenue (RM mn) 5,475 5,613 2%

EBITDA (RM mn) 1,941 1,817 (6%)

EBITDA margin 35% 32% (3pp)

PATAMI (RM mn) 615 624 1%

FCF (RM mn) 1,276 1,317 3%

EPS (RM sen) 11.8 12.0 2%

NB

(1) TV household data sourced from the

Department of Statistics Malaysia and

Media Partners Asia

(2) Household penetration includes both

residential Pay-TV customers and NJOI

customers

(3) Viewership share is based on DTAM

deployed by Kantar Media as of FY17.

Comparatives in FY16 are updated

accordingly

(4) There is a change in audience

measurement partner for the radio

industry in Malaysia commencing

H2FY17. The ratings prior to the change

was provided by Nielsen whereas it is

now being provided by GfK. Share of

radex is based on internal estimates

(5) Data presented are for the 12 months

ended 31 January

(6) Numbers may not add up due to

rounding differences

FY17 snapshot

YoY revenue growth underpinned by Go Shop and Adex

1,087 1,094 1,083 1,096 1,076 1,095 1,090 1,094

75 87 86 96 78

99 105 95 62

81 75 78

72 87 83 86 37

38 52 63

64

74 62 61 70 69 77

68 72

72 84 62 1,330 1,369 1,374

1,402 1,363

1,428 1,424 1,397

1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17

Other

Go Shop

Radio

TV adex

TV subscription

(RM mn)

2%

11%

10%

0%

Total revenue YoY growth(2)

NB

(1) Other revenue includes licensing income, publications adex, programme sales, NJOI revenue and theatrical revenue

(2) YoY refers to FY17 vs. FY16

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

38%

(1)

18 | 4QFY17 results

2%

73 86 84

93 77

99 104 95

62

81 75

78

72

87 83 86 2

2 2

2

1

1 1 0

136

168 161

174

150

186 188 181


TV Radio Publications

4QFY16 4QFY17

Advertising income consistently outperforming the industry

Advertising income (RM mn) YoY growth(2)

(66)%

11%

12%

(1)

Total Malaysia

gross ADEX YoY

growth

OVERALL ADEX

(2%)

RADIO

5%

TV

2%

(2)(5)70%

73%

4QFY16 4QFY17

Share of Radex

35%38%

4QFY16 4QFY17

Share of TV adex

Radio listeners (mn)

76% 77%

4QFY16 4QFY17

Astro TV

viewership share

(3)

(4)

NB

(1) Advertising income is net of commissions and discounts

(2) YoY refers to FY17 vs. FY16

(3) There is a change in audience measurement partner for the radio

industry in Malaysia commencing H2FY17. The ratings prior to the

change was provided by Nielsen whereas it is now being provided

by GfK. Share of radex is based on internal estimates

(4) Viewership share is based on DTAM deployed by Kantar Media as

of FY17, comparatives in FY16 are updated accordingly. 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


12.8

19 | 4QFY17 results

15.610%

Cost optimisation success despite global rise in content cost

and USD strength

397 411 427 420 406 492 469 430

417 428 440 436 427 406 415 417

124 124 141 139 117 121 120 136

131 131 114 118 135 166 133 147

1,070 1,095 1,121 1,113 1,085 1,184 1,136 1,129


Content costs Operating expenses

Marketing & distribution costs Administrative expenses

Content cost as %

of TV revenue

(RM mn)

33% 39%

Total operating expenditure

34% 33% 37%

NB

(1) Content costs and operating expenses are jointly disclosed as cost of sales in our financial statements

(2) Operating expenses include STB installation and smartcard costs, depreciation and amortisation, as well as maintenance costs


(1) (2)

20 | 4QFY17 results

34%33%32%

150

57

122

106

32

83

FY16 FY17

Revenue Growth Digitalisation Capital Maintenance

NB

(1) Data presented are for the 12 months ended 31 January


Applying ROI discipline in capex spend

6% 4%as % of

revenue

(RM mn)

316 163

FY16 FY17

6% 3%as % of

revenue

(RM mn)

Key capex investments in FY17 include:

Product and service upgrading

Technology infrastructure

Customer experience

Cash capex Capitalised capex

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

RM801mn of vendor financing recorded in payables, of

which RM311mn is current and RM490mn is non-

current

246

304

21 | 4QFY17 results

Strong cash generation significantly exceeds PATAMI…

1,944 1,888

668 572

1,276 1,317

Cash fromoperations

Cash frominvesting

Free cash flow Cash fromoperations

Cash frominvesting

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

207% 211%as % of PATAMI

(RM mn)

FY16 FY17

Free cash flow

…enabling significant flexibility on capital management and dividend policy

NB

(1) Data presented are for the 12 months ended 31 January

(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

to be consistent with Bursa disclosure


22 | 4QFY17 results

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 4QFY17

and a final dividend of 0.50 sen per share, subject to shareholders’ approval at the upcoming AGM

in June 2017

Quarterly dividend entitlement and payment dates: 12th April 2017 and 27th April 2017,

respectively

Quarterly dividend announcement

23 | 4QFY17 results

Appendix

(RM mn) FY16 FY17

EBITDA 1,941 1,817

Margin % 35% 32%

Depreciation and amortisation (826) (721)

EBIT 1,115 1,095

Margin % 20% 20%

Finance income 53 35

Finance cost (346) (272)

Share of post tax results from investments 8 2

Impairment of investments accounted for using the equity

method- (15)

PBT 829 846

Tax expense (221) (229)

Tax rate % 27% 27%

PAT 608 617

PATAMI 615 624

Margin % 11% 11%

Normalised PATAMI 662 648

Margin % 12% 12%

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 loss

(RM33.7m) due to revaluation of M3B

transponder lease liability

(3) Numbers may not add up due to

rounding differences

(2)

PAT reconciliation

(1)

25 | 4QFY17 results

(RM mn) FY16 FY17

Non-current assets 4,813 4,559

Property, plant and equipment 2,129 1,818

Other non-current assets 2,683 2,741

Current assets 2,088 1,707

Receivables and prepayments 955 859

Cash and bank balances(1) 979 647

Other current assets 154 202

6,901 6,266

(RM mn) FY16 FY17

Non-current liabilities 4,006 3,356

Payables 626 490

Borrowings 3,286 2,776

Other non-current liabilities 94 90

Current liabilities 2,281 2,280

Payables 1,658 1,627

Borrowings 520 629

Other current liabilities 104 24

Shareholders’ equity 614 630

6,901 6,266

Net debt / LTM EBITDA: 1.5x

NB

(1) Includes money market unit trusts

(2) Data presented are as at 31 January


Group Balance Sheet overview

26 | 4QFY17 results

1,066

1,363

990

FY17

Finance lease RM term loan USD term loan

USD term

loan

RM term

loan

Finance lease

(primarily

satellite

transponders)

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 USD122.0m

Effective interest rate: 6.2%, 12.5% and 5.6% p.a. for M3, M3A and M3B

respectively

Average life: 15 years

3,406

(RM mn)Total borrowings Details of borrowings

Total borrowings is net of debt

issuance costs (RM13.5 mn)

As at 31 January 2017, outstanding principal US dollar term loan stood at

US$222.75mn. The eighth principal repayment of USD24.75mn

(RM74.72mn) is scheduled to be paid on 8 June 2017

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.

Back ended amortisation schedule. With first drawdown date of 8 June

2011, average life is 7 years with final maturity date of 8 June 2021

As at 31 January 2017, total outstanding principal RM term loan stood at

RM1,350mn. The eighth principal repayment of RM150mn is scheduled to

be paid on 19 May 2017

All-in interest rate (post-hedging) for the hedged portion of

RM1,012.5mn is 5.4467% while balance unhedged of RM337.5mn stood at

4.8200% (variable floating rate based on cost of funds)

Back ended amortisation schedule. With first drawdown date of 19 May

2011, average life is 7 years with final maturity date of 19 May 2021

Debt profile

27 | 4QFY17 results

Thank you

th quarter and full year fy17 results - acmkentico-prd.s3 ... · through targeted marketing and...

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