ZoomerMedia Ltd Net Income surged on 7,771% in 2016 while Revenue decreased on 3.1%
20.12.2016 • About ZoomerMedia Ltd (
$ZUM) • By InTwits
ZoomerMedia Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- ZoomerMedia Ltd is a company in decline: FY2016 revenue growth was -3.1%, 5 years revenue CAGR was -2.6%
- EBITDA Margin is declining: 27.1% in FY2016 vs. 29.1% in FY2015 vs. 32.6% in FY2012
- ZoomerMedia Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 0.34 in FY2016, 1.0 in FY2015, 1.9 in FY2014, 3.2 in FY2013, 2.6 in FY2012
- The company has potentially unprofitable business model: ROIC is at 4.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ZoomerMedia Ltd ($ZUM) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 55.977 | 56.271 | 55.057 | 54.390 | 52.719 | -3.1% |
| EBITDA | 18.259 | 19.033 | 16.158 | 15.844 | 14.291 | -9.8% |
| Net Income | -3.559 | 5.278 | -1.772 | 0.137 | 10.820 | 7,771.4% |
Balance Sheet
|
|---|
| Cash | 5.070 | 2.830 | 0.000 | 0.000 | 3.944 | |
| Short Term Debt | 1.895 | 10.922 | 3.224 | 15.993 | 0.935 | -94.2% |
| Long Term Debt | 33.404 | 22.538 | 21.597 | 5.975 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 2.619 | 3.176 | 1.886 | 1.034 | 0.338 | -67.3% |
Ratios
|
|---|
| Revenue growth | -6.7% | 0.5% | -2.2% | -1.2% | -3.1% | |
| EBITDA growth | 1.8% | 4.2% | -15.1% | -1.9% | -9.8% | |
| EBITDA Margin | 32.6% | 33.8% | 29.3% | 29.1% | 27.1% | -2.0% |
| Net Income Margin | -6.4% | 9.4% | -3.2% | 0.3% | 20.5% | 20.3% |
| CAPEX, % of revenue | 4.7% | 5.6% | 3.4% | 1.9% | 0.6% | -1.3% |
| ROIC | 4.0% | 8.2% | 2.3% | 3.6% | 4.4% | 0.8% |
| ROE | -10.4% | 15.1% | -4.8% | | | 0.0% |
| Net Debt/EBITDA | 1.7x | 1.6x | 1.5x | 1.4x | -0.2x | -1.6x |
ZoomerMedia Ltd ($ZUM) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 15 | 11 | 14 | 13 | 0.1% | -8.4% | -3.4% | -1.5% |
| EBITDA | 6 | 2 | 4 | 2 | 2.2% | -33.3% | -1.3% | -17.9% |
| Net Income | 2 | -1 | 9 | 1 | 49.8% | | 1,988.8% | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 11 | 4 | -100.0% | | | |
| Short Term Debt | 15 | 2 | 1 | 1 | -3.0% | -85.9% | -93.2% | -94.2% |
| Long Term Debt | 5 | 5 | 0 | 0 | -28.2% | -30.9% | -98.5% | -100.0% |
Ratios
|
|---|
| EBITDA Margin | 36.4% | 20.6% | 31.5% | 16.9% | 0.7% | -7.7% | 0.7% | -3.4% |
| Net Income Margin | 11.2% | -7.3% | 66.0% | 7.5% | 3.7% | -6.0% | 62.9% | 17.4% |
Revenue and profitability
ZoomerMedia Ltd's Revenue decreased on 3.1%. Annual revenue decline showed slowdown in FY16Q4 - revenue decreased slightly on 1.5%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.0 pp from 29.1% to 27.1% in FY2016.
Net Income marign surged on 20.3 pp from 0.25% to 20.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 ZoomerMedia Ltd had CAPEX/Revenue of 0.64%. ZoomerMedia Ltd showed decline in CAPEX/Revenue of 5.0 pp from 5.6% in FY2013 to 0.64% in FY2016. Average CAPEX/Revenue for the last three years was 2.0%.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is 0.1x. Net Debt / EBITDA dropped on 1.6x from 1.4x to -0.2x in FY2016. Debt dropped on 95.7% while cash surged.
Appendix 1: Peers in Communications
Below we provide ZoomerMedia Ltd benchmarking against other companies in Communications industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AcuityAds Holding Inc ($AT) | | | | 51.6% | 91.4% |
| Shopify Inc ($SH) | | 111.9% | 109.0% | 95.4% | 89.7% |
| Gaming Nation Inc ($FAN) | | | | | 46.6% |
| Tucows Inc ($TC) | | 13.3% | 13.6% | 17.1% | 9.8% |
| Points International Ltd ($PTS) | | 45.1% | 26.0% | 16.2% | 8.6% |
| |
|---|
| Median (25 companies) | 13.1% | 4.4% | 3.1% | 4.3% | 2.4% |
|---|
| ZoomerMedia Ltd ($ZUM) | | 0.5% | -2.2% | -1.2% | -3.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wanted Technologies Corp ($WAN) | 90.5% | 93.2% | 94.3% | 95.6% | |
| NeuLion Inc ($NLN) | 53.6% | 63.8% | 70.2% | 81.1% | 81.6% |
| TeraGo Inc ($TGO) | 62.9% | 61.8% | 59.8% | 77.2% | 77.2% |
| ICTV Brands Inc ($ITV) | 67.4% | 71.9% | 69.6% | 68.1% | |
| Platinum Communications Corp ($PCS) | 67.4% | 67.1% | 60.2% | 60.5% | |
| |
|---|
| Median (23 companies) | 44.2% | 42.8% | 45.3% | 46.4% | 41.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BCE Inc ($BCE) | 38.8% | 37.7% | 38.4% | 37.7% | 39.8% |
| Rogers Communications Inc ($RCI.A) | 37.3% | 38.4% | 37.9% | 36.9% | 32.5% |
| Quebecor Inc ($QBR.B) | 27.5% | 36.3% | 35.5% | 34.2% | 35.5% |
| TELUS Corp ($T) | 35.3% | 35.2% | 35.1% | 34.1% | 33.0% |
| Newfoundland Capital Corp Ltd ($NCC.B) | 25.9% | 25.1% | 27.4% | 28.2% | |
| |
|---|
| Median (29 companies) | 14.4% | 7.7% | 8.8% | 9.4% | 7.3% |
|---|
| ZoomerMedia Ltd ($ZUM) | 32.6% | 33.8% | 29.3% | 29.1% | 27.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| TELUS Corp ($T) | 17.9% | 17.8% | 19.8% | 20.2% | 21.5% |
| Rogers Communications Inc ($RCI.A) | 17.2% | 17.6% | 18.4% | 18.2% | 17.2% |
| Quebecor Inc ($QBR.B) | 16.7% | 15.4% | 17.9% | 17.5% | 17.6% |
| BCE Inc ($BCE) | 17.6% | 17.5% | 17.7% | 16.9% | 17.4% |
| TeraGo Inc ($TGO) | 20.9% | 21.5% | 23.1% | 14.8% | 13.0% |
| |
|---|
| Median (28 companies) | 2.6% | 2.8% | 2.2% | 3.1% | 3.6% |
|---|
| ZoomerMedia Ltd ($ZUM) | 4.7% | 5.6% | 3.4% | 1.9% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tucows Inc ($TC) | 17.7% | 22.5% | 35.4% | 51.4% | 58.4% |
| BCE Inc ($BCE) | 14.1% | 12.6% | 12.6% | 12.3% | 12.6% |
| Quebecor Inc ($QBR.B) | 7.9% | 9.6% | 8.4% | 8.4% | 10.1% |
| MDC Partners Inc ($MDZ.A) | -3.1% | -6.3% | 14.2% | 13.7% | 10.1% |
| TELUS Corp ($T) | 12.4% | 13.0% | 13.0% | 11.5% | 9.6% |
| |
|---|
| Median (28 companies) | 9.9% | 7.7% | 7.5% | 2.0% | -0.1% |
|---|
| ZoomerMedia Ltd ($ZUM) | 4.0% | 8.2% | 2.3% | 3.6% | 4.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Intertain Group Ltd/The ($IT) | | | | 9.4x | |
| MDC Partners Inc ($MDZ.A) | 12.4x | 112.6x | 4.6x | 5.5x | 9.6x |
| Quebecor Inc ($QBR.B) | 3.7x | 3.9x | 4.2x | 4.8x | 4.3x |
| Rogers Communications Inc ($RCI.A) | 2.3x | 2.4x | 3.2x | 3.6x | 3.8x |
| Newfoundland Capital Corp Ltd ($NCC.B) | 1.4x | 1.3x | 3.3x | 3.2x | |
| |
|---|
| Median (20 companies) | 1.4x | 1.2x | 1.5x | 1.8x | 1.9x |
|---|
| ZoomerMedia Ltd ($ZUM) | 1.7x | 1.6x | 1.5x | 1.4x | -0.2x |
