Asian Television Network International Ltd Net Income dropped on 11.5% in 2015 and EBITDA Margin decreased slightly on 0.51 pp from 13.4% to 12.9%
25.04.2016 • About Asian Television Network International Ltd (
$SAT) • By InTwits
Asian Television Network International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 12.9% in 2015, 13.4% in 2014, 13.4% in 2013, 15.6% in 2012, 27.0% in 2011
- Asian Television Network International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: 0.20 in 2015, 0.32 in 2014, 0.71 in 2013, 3.4 in 2012, 0.13 in 2011
- The company has highly profitable business model: ROIC is at 21.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asian Television Network International Ltd ($SAT) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 27.964 | 27.763 | 27.374 | 26.426 | 26.103 | -1.2% |
| Gross Profit | 27.790 | 27.402 | | | | |
| SG&A | 17.530 | 20.031 | 19.474 | 18.360 | 18.472 | 0.6% |
| EBITDA | 7.553 | 4.340 | 3.656 | 3.552 | 3.376 | -4.9% |
| Net Income | 5.297 | 2.916 | 2.488 | 2.105 | 1.863 | -11.5% |
Balance Sheet
|
|---|
| Cash | 5.018 | 6.518 | 6.745 | 7.872 | 7.746 | -1.6% |
| Short Term Debt | 0.085 | 0.734 | 0.722 | 0.687 | 0.888 | 29.2% |
| Long Term Debt | 0.097 | 2.760 | 2.039 | 1.395 | 0.707 | -49.3% |
Cash flow
|
|---|
| Capex | 0.129 | 3.430 | 0.712 | 0.321 | 0.203 | -36.7% |
Ratios
|
|---|
| Revenue growth | 31.2% | -0.7% | -1.4% | -3.5% | -1.2% | |
| EBITDA growth | 140.8% | -42.5% | -15.8% | -2.9% | -4.9% | |
| Gross Margin | 99.4% | 98.7% | | | | 0.0% |
| EBITDA Margin | 27.0% | 15.6% | 13.4% | 13.4% | 12.9% | -0.5% |
| Net Income Margin | 18.9% | 10.5% | 9.1% | 8.0% | 7.1% | -0.8% |
| SG&A, % of revenue | 62.7% | 72.1% | 71.1% | 69.5% | 70.8% | 1.3% |
| CAPEX, % of revenue | 0.5% | 12.4% | 2.6% | 1.2% | 0.8% | -0.4% |
| ROIC | 102.7% | 34.6% | 23.6% | 23.4% | 21.4% | -2.0% |
| ROE | 74.9% | 30.8% | 24.9% | 20.4% | 18.0% | -2.4% |
| Net Debt/EBITDA | -0.6x | -0.7x | -1.1x | -1.6x | -1.8x | -0.2x |
Revenue and profitability
Asian Television Network International Ltd's Revenue decreased slightly on 1.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.3 pp from -0.89% to 3.4% in FY2015.
SG&A as a % of Revenue increased slightly on 1.3 pp from 69.5% to 70.8% in 2015.
Net Income marign decreased slightly on 0.83 pp from 8.0% to 7.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.78% in 2015. Asian Television Network International Ltd's CAPEX/Revenue dropped on 11.6 pp from 12.4% in 2012 to 0.78% in 2015. For the last three years the average CAPEX/Revenue was 1.5%.
Return on investment
The company operates at high and attractive ROIC (21.38%) while ROE is a bit lower (18.00%). ROIC decreased on 2.0 pp from 23.4% to 21.4% in 2015. ROE decreased on 2.4 pp from 20.4% to 18.0% in 2015.
Leverage (Debt)
Debt level is -1.8x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from -1.6x to -1.8x in 2015. Debt dropped on 23.4% in 2015 while cash decreased slightly on 1.6% in 2015.
Appendix 1: Peers in Communications
Below you can find Asian Television Network International Ltd benchmarking vs. other companies in Communications industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intertain Group Ltd/The ($IT) | | | | | 842.9% |
| UrtheCast Corp ($UR) | | | | | 205.7% |
| DragonWave Inc ($DWI) | | -61.3% | 171.3% | -27.3% | 75.3% |
| Blackline Safety Corp ($BLN) | | 37.1% | 9.4% | 45.1% | 73.8% |
| NeuLion Inc ($NLN) | | -1.7% | 20.8% | 17.9% | 69.4% |
| |
|---|
| Median (49 companies) | -15.6% | 5.1% | 2.3% | 2.5% | 2.7% |
|---|
| Asian Television Network International Ltd ($SAT) | | -0.7% | -1.4% | -3.5% | -1.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanted Technologies Corp ($WAN) | 86.6% | 90.5% | 93.2% | 94.3% | 95.6% |
| CounterPath Corp ($CCV) | 74.1% | 80.0% | 85.1% | 80.9% | 81.5% |
| NeuLion Inc ($NLN) | 45.2% | 53.6% | 63.8% | 70.2% | 81.1% |
| Mediagrif Interactive Technologies Inc ($MDF) | 78.2% | 79.8% | 79.8% | 78.8% | 80.1% |
| TeraGo Inc ($TGO) | 65.0% | 62.9% | 61.8% | 59.8% | 77.2% |
| |
|---|
| Median (38 companies) | 43.3% | 43.0% | 42.7% | 42.5% | 46.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cogeco Cable Inc ($CCA) | 45.8% | 46.0% | 44.9% | 43.8% | 46.2% |
| Shaw Communications Inc ($SJR.B) | 43.3% | 42.7% | 43.3% | 42.1% | 44.6% |
| Cogeco Inc ($CGO) | 28.1% | 43.2% | 43.5% | 43.3% | 44.3% |
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | 42.3% |
| Mediagrif Interactive Technologies Inc ($MDF) | 32.0% | 32.5% | 41.3% | 37.2% | 39.0% |
| |
|---|
| Median (48 companies) | 14.1% | 13.4% | 14.6% | 11.7% | 10.9% |
|---|
| Asian Television Network International Ltd ($SAT) | 27.0% | 15.6% | 13.4% | 13.4% | 12.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Axia NetMedia Corp ($AXX) | 10.7% | 30.8% | 27.2% | 27.0% | 36.2% |
| Manitoba Telecom Services Inc ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | 22.9% |
| Shaw Communications Inc ($SJR.B) | 17.4% | 18.2% | 18.2% | 19.7% | 22.2% |
| Cogeco Cable Inc ($CCA) | 24.6% | 28.1% | 23.0% | 20.6% | 20.7% |
| TELUS Corp ($T) | 18.0% | 17.9% | 17.8% | 19.8% | 20.2% |
| |
|---|
| Median (48 companies) | 4.3% | 2.1% | 3.2% | 2.2% | 2.2% |
|---|
| Asian Television Network International Ltd ($SAT) | 0.5% | 12.4% | 2.6% | 1.2% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tucows Inc ($TC) | 12.8% | 17.7% | 22.5% | 35.4% | 51.4% |
| Points International Ltd ($PTS) | 20.7% | 14.9% | 15.0% | 21.2% | 18.8% |
| RDM Corp ($RC) | -2.3% | 3.5% | 7.8% | 11.0% | 14.7% |
| Vecima Networks Inc ($VCM) | -0.6% | 11.7% | 6.4% | 11.4% | 14.5% |
| Norsat International Inc ($NII) | 3.1% | 10.9% | 1.4% | 13.7% | 13.8% |
| |
|---|
| Median (50 companies) | 6.7% | 8.0% | 8.3% | 7.7% | 3.7% |
|---|
| Asian Television Network International Ltd ($SAT) | 102.7% | 34.6% | 23.6% | 23.4% | 21.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intertain Group Ltd/The ($IT) | | | | | 9.4x |
| MDC Partners Inc ($MDZ.A) | 7.3x | 12.4x | 112.6x | 4.6x | 5.5x |
| Quebecor Inc ($QBR.B) | 2.0x | 3.7x | 3.9x | 4.2x | 4.8x |
| Plaintree Systems Inc ($NPT) | 0.7x | | | 124.2x | 3.9x |
| Rogers Communications Inc ($RCI.A) | 2.2x | 2.3x | 2.4x | 3.2x | 3.6x |
| |
|---|
| Median (35 companies) | 1.2x | 1.4x | 1.3x | 1.5x | 1.4x |
|---|
| Asian Television Network International Ltd ($SAT) | -0.6x | -0.7x | -1.1x | -1.6x | -1.8x |
