One Media Group Ltd reports 139% Net Income decline and 11.9% Revenue decline
28/05/2015 • About One Media Group Ltd (
$426) • By InTwits
One Media Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- One Media Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has business model with low profitability: ROIC is at 8.9%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is -2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
One Media Group Ltd ($426) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 200.2 | 224.2 | 217.3 | 203.4 | 179.2 | -11.9% |
| Gross Profit | 104.1 | 128.4 | 123.2 | 110.9 | 94.5 | -14.8% |
| SG&A | | | 82.5 | 78.6 | 78.6 | -0.1% |
| EBITDA | 28.8 | 41.9 | 50.0 | 46.4 | 27.3 | -41.3% |
| Net Income | 20.4 | 32.6 | 35.9 | 28.6 | -11.1 | -138.7% |
Balance Sheet
|
|---|
| Cash | 108.6 | 97.5 | 102.8 | 123.5 | 33.6 | -72.8% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 75.5 | |
| Long Term Debt | 0.0 | 0.0 | 72.5 | 74.0 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 1.9 | 2.5 | 2.9 | 2.0 | 0.6 | -68.8% |
Ratios
|
|---|
| Revenue growth | 10.4% | 12.0% | -3.1% | -6.4% | -11.9% | |
| EBITDA growth | 130.6% | 45.6% | 19.3% | -7.1% | -41.3% | |
| Gross Margin | 52.0% | 57.3% | 56.7% | 54.5% | 52.7% | -1.8% |
| EBITDA Margin | 14.4% | 18.7% | 23.0% | 22.8% | 15.2% | -7.6% |
| Net Income Margin | 10.2% | 14.5% | 16.5% | 14.1% | -6.2% | -20.3% |
| SG&A, % of revenue | | | 38.0% | 38.7% | 43.8% | 5.2% |
| CAPEX, % of revenue | 1.0% | 1.1% | 1.3% | 1.0% | 0.4% | -0.6% |
| ROIC | 17.1% | 25.6% | 21.8% | 16.0% | 8.9% | -7.0% |
| ROE | 13.1% | 21.0% | 20.5% | 15.2% | -6.1% | -21.4% |
| Net Debt/EBITDA | -3.8x | -2.3x | -0.6x | -1.1x | 1.5x | 2.6x |
Revenue and profitability
The company's Revenue dropped on 11.9% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 7.6 pp from 22.8% to 15.2% in FY2015.
Gross Margin decreased slightly on 1.8 pp from 54.5% to 52.7% in FY2015. SG&A as a % of Revenue increased on 5.2 pp from 38.7% to 43.8% in FY2015.
Net Income marign dropped on 20.3 pp from 14.1% to -6.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
One Media Group Ltd's CAPEX/Revenue was 0.35% in FY2015. One Media Group Ltd's CAPEX/Revenue decreased slightly on 0.75 pp from 1.1% in FY2012 to 0.35% in FY2015. Average CAPEX/Revenue for the last three years was 0.89%.
Return on investment
The company operates at low but positive ROIC (8.92%) and negative ROE (-6.15%). ROIC decreased on 7.0 pp from 16.0% to 8.9% in FY2015. ROE dropped on 21.4 pp from 15.2% to -6.1% in FY2015.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA jumped on 2.6x from -1.1x to 1.5x in FY2015. Debt increased on 2.0% in FY2015 while cash dropped on 72.8% in FY2015.
Appendix 1: Peers in Media
Below we provide One Media Group Ltd benchmarking against other companies in Media 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CMMB Vision Holdings Ltd ($471) | | | 168.1% | 27.8% | |
| Culturecom Holdings Ltd ($343) | 4.7% | -24.2% | -7.7% | 16.4% | |
| Sing Pao Media Enterprises Ltd ($8010) | 20.7% | 15.3% | 26.9% | 9.7% | |
| Focus Media Network Ltd ($8112) | 23.7% | -10.6% | 34.6% | 5.6% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 15.0% | 5.6% | 2.7% | 3.1% | |
| |
|---|
| Median (19 companies) | 9.9% | 4.0% | -1.8% | -3.9% | -8.4% |
|---|
| One Media Group Ltd ($426) | | 12.0% | -3.1% | -6.4% | -11.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| I-CABLE Communications Ltd ($1097) | 95.6% | 94.8% | 94.7% | 94.1% | |
| Television Broadcasts Ltd ($511) | 65.3% | 62.9% | 60.9% | 59.0% | |
| Modern Media Holdings ($72) | 57.1% | 57.5% | 55.8% | 55.6% | |
| Focus Media Network Ltd ($8112) | 81.0% | 68.0% | 67.2% | 50.8% | |
| Next Media Ltd ($282) | 33.1% | 36.6% | 37.4% | 41.3% | |
| |
|---|
| Median (16 companies) | 43.6% | 37.5% | 38.5% | 36.1% | 38.6% |
|---|
| One Media Group Ltd ($426) | 52.0% | 57.3% | 56.7% | 54.5% | 52.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SCMP Group Ltd ($583) | 26.9% | 23.5% | 20.5% | 218.1% | |
| Television Broadcasts Ltd ($511) | 45.2% | 43.2% | 42.3% | 37.3% | |
| Phoenix Satellite Television Holdings Ltd ($2008) | 29.8% | 30.1% | 31.1% | 24.6% | |
| Media Chinese International Ltd ($685) | 20.0% | 20.0% | 18.3% | 18.1% | 16.5% |
| Tom Group Ltd ($2383) | -10.8% | -3.3% | -11.6% | 15.8% | |
| |
|---|
| Median (19 companies) | 14.0% | 9.9% | 11.5% | 9.8% | 16.5% |
|---|
| One Media Group Ltd ($426) | 14.4% | 18.7% | 23.0% | 22.8% | 15.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SCMP Group Ltd ($583) | 3.6% | 7.0% | 5.3% | 52.2% | |
| Culturecom Holdings Ltd ($343) | 12.5% | 10.2% | 38.6% | 24.5% | |
| Phoenix Satellite Television Holdings Ltd ($2008) | 14.6% | 12.0% | 8.5% | 11.4% | |
| I-CABLE Communications Ltd ($1097) | 10.6% | 10.1% | 7.6% | 11.3% | |
| V1 Group Ltd ($82) | 1.4% | 1.9% | 3.2% | 10.1% | |
| |
|---|
| Median (19 companies) | 4.6% | 3.9% | 5.3% | 2.9% | 1.9% |
|---|
| One Media Group Ltd ($426) | 1.0% | 1.1% | 1.3% | 1.0% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Media Chinese International Ltd ($685) | 18.7% | 18.6% | 17.8% | 18.4% | 15.6% |
| Television Broadcasts Ltd ($511) | 26.5% | 23.8% | 22.4% | 15.1% | |
| Phoenix Satellite Television Holdings Ltd ($2008) | 21.5% | 18.5% | 18.4% | 11.7% | |
| Modern Media Holdings ($72) | 23.8% | 20.6% | 10.4% | 9.3% | |
| Next Media Ltd ($282) | 1.7% | 8.5% | 6.7% | 8.2% | |
| |
|---|
| Median (19 companies) | 7.9% | 3.7% | 4.3% | 2.6% | 15.6% |
|---|
| One Media Group Ltd ($426) | 17.1% | 25.6% | 21.8% | 16.0% | 8.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tom Group Ltd ($2383) | | | | 8.1x | |
| Media Chinese International Ltd ($685) | -1.1x | -1.4x | 0.8x | 0.6x | 0.2x |
| I-CABLE Communications Ltd ($1097) | -2.0x | -4.0x | -0.8x | 0.2x | |
| Modern Media Holdings ($72) | -0.9x | -0.8x | -0.9x | 0.1x | |
| Next Media Ltd ($282) | 0.0x | 0.4x | 0.4x | -0.2x | |
| |
|---|
| Median (13 companies) | -1.3x | -1.4x | -1.5x | -1.5x | 0.2x |
|---|
| One Media Group Ltd ($426) | -3.8x | -2.3x | -0.6x | -1.1x | 1.5x |
