Bingo Group Holdings Ltd reports 295% EBITDA decline and 4.3% Revenue decline
19/06/2015 • About Bingo Group Holdings Ltd (
$8220) • By InTwits
Bingo Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bingo Group Holdings Ltd is a company in decline: FY2015 revenue growth was -4.3%, 5 years revenue CAGR was -35.5%
- The company operates at negative EBITDA Margin: -49.7%
- Bingo Group Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -25.2%0
- Bingo Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 38.8%.
- CAPEX is quite volatile: 1.6 in FY2015, 2.6 in FY2014, 0.18 in FY2013, 0.40 in FY2012, 0.38 in FY2011
- The company has unprofitable business model: ROIC is at -27.9%
- It operates with high leverage: Net Debt/EBITDA is 55.9x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bingo Group Holdings Ltd ($8220) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 557.6 | 280.0 | 89.0 | 80.4 | 77.0 | -4.3% |
| Gross Profit | 11.3 | 6.1 | 63.3 | 44.4 | 44.1 | -0.5% |
| SG&A | | | 24.1 | 48.0 | 51.0 | 6.3% |
| EBITDA | -173.7 | -111.8 | 31.4 | 19.6 | -38.3 | -294.8% |
| Net Income | -156.9 | -124.2 | 13.0 | -59.5 | -65.9 | 10.9% |
Balance Sheet
|
|---|
| Cash | 116.8 | 39.1 | 108.7 | 106.0 | 129.0 | 21.7% |
| Short Term Debt | 49.2 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 8.2 | 10.9 | 13.6 | 16.4 | 19.3 | 18.0% |
Cash flow
|
|---|
| Capex | 0.4 | 0.4 | 0.2 | 2.6 | 1.6 | -39.1% |
Ratios
|
|---|
| Revenue growth | -18.9% | -49.8% | -68.2% | -9.6% | -4.3% | |
| EBITDA growth | 190.2% | -35.6% | -128.1% | -37.5% | -294.8% | |
| Gross Margin | 2.0% | 2.2% | 71.2% | 55.1% | 57.4% | 2.2% |
| EBITDA Margin | -31.2% | -39.9% | 35.3% | 24.4% | -49.7% | -74.1% |
| Net Income Margin | -28.1% | -44.3% | 14.6% | -73.9% | -85.7% | -11.8% |
| SG&A, % of revenue | | | 27.1% | 59.7% | 66.3% | 6.6% |
| CAPEX, % of revenue | 0.1% | 0.1% | 0.2% | 3.2% | 2.0% | -1.2% |
| ROIC | -75.9% | -80.0% | 5.1% | 5.4% | -27.9% | -33.3% |
| ROE | -189.1% | -117.3% | 8.3% | -38.0% | -49.4% | -11.4% |
| Net Debt/EBITDA | | | -3.0x | -4.6x | | 4.6x |
Revenue and profitability
Bingo Group Holdings Ltd's Revenue decreased on 4.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 74.1 pp from 24.4% to -49.7% in FY2015.
Gross Margin increased on 2.2 pp from 55.1% to 57.4% in FY2015. SG&A as a % of Revenue increased on 6.6 pp from 59.7% to 66.3% in FY2015.
Net Income marign dropped on 11.8 pp from -73.9% to -85.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Bingo Group Holdings Ltd had CAPEX/Revenue of 2.0%. CAPEX/Revenue increased slightly on 1.9 pp from 0.14% in FY2012 to 2.0% in FY2015. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at negative ROIC (-27.93%) and ROE (-49.40%). ROIC dropped on 33.3 pp from 5.4% to -27.9% in FY2015. ROE dropped on 11.4 pp from -38.0% to -49.4% in FY2015.
Leverage (Debt)
Debt level is 55.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA jumped on 4.6x from -4.6x to in FY2015. Debt jumped on 18.0% in FY2015 while cash surged on 21.7% in FY2015.
Appendix 1: Peers in Entertainment
Below you can find Bingo Group Holdings Ltd benchmarking vs. other companies in Entertainment 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 |
|---|
| China 3D Digital Entertainment Ltd ($8078) | -41.9% | -67.2% | 295.2% | 185.2% | |
| Universe International Holdings Ltd ($1046) | 10.2% | -42.2% | 4.3% | 159.4% | |
| China Vanguard Group Ltd ($8156) | 15.6% | -7.0% | -62.7% | 145.0% | |
| China LotSynergy Holdings Ltd ($1371) | 86.9% | 15.0% | 22.5% | 39.1% | |
| Nan Hai Corp Ltd ($680) | 20.7% | -16.3% | 18.7% | 36.0% | |
| |
|---|
| Median (26 companies) | 19.2% | 2.9% | 14.1% | 1.2% | -4.7% |
|---|
| Bingo Group Holdings Ltd ($8220) | | -49.8% | -68.2% | -9.6% | -4.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amax International Holdings Ltd ($959) | | | 92.1% | 98.6% | |
| China Vanguard Group Ltd ($8156) | 65.0% | 63.8% | 88.2% | 93.8% | |
| Cheung Wo International Holdings Ltd ($9) | 49.4% | -17.5% | 71.4% | 77.7% | |
| REXLot Holdings Ltd ($555) | 63.0% | 70.2% | 73.1% | 73.4% | |
| China LotSynergy Holdings Ltd ($1371) | 81.7% | 79.5% | 73.1% | 70.1% | |
| |
|---|
| Median (22 companies) | 48.3% | 44.9% | 48.7% | 43.5% | |
|---|
| Bingo Group Holdings Ltd ($8220) | 2.0% | 2.2% | 71.2% | 55.1% | 57.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cheung Wo International Holdings Ltd ($9) | 7.8% | -62.7% | -217.3% | 104.5% | |
| Neptune Group Ltd ($70) | 101.1% | 98.6% | 98.6% | 86.6% | |
| Universe International Holdings Ltd ($1046) | 62.2% | 36.6% | 44.6% | 74.6% | |
| China LotSynergy Holdings Ltd ($1371) | 61.2% | 53.3% | 60.9% | 56.1% | |
| Haichang Holdings Ltd ($2255) | 46.9% | 55.0% | 44.5% | 46.3% | |
| |
|---|
| Median (26 companies) | 14.2% | 22.1% | 17.2% | 14.9% | 11.2% |
|---|
| Bingo Group Holdings Ltd ($8220) | -31.2% | -39.9% | 35.3% | 24.4% | -49.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Arts Entertainment and Culture Group Ltd ($8228) | 536.1% | 1,237.1% | 771.1% | 799.0% | |
| Cheung Wo International Holdings Ltd ($9) | 44.7% | 90.3% | 465.2% | 383.2% | |
| Alibaba Pictures Group Ltd ($1060) | 0.5% | 16.1% | 17.2% | 34.8% | |
| Mei Ah Entertainment Group Ltd ($391) | 2.5% | 6.8% | 3.6% | 25.4% | |
| Nan Hai Corp Ltd ($680) | 29.1% | 19.2% | 35.2% | 18.2% | |
| |
|---|
| Median (26 companies) | 7.3% | 9.7% | 9.0% | 5.0% | 16.8% |
|---|
| Bingo Group Holdings Ltd ($8220) | 0.1% | 0.1% | 0.2% | 3.2% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 22.5% | 23.8% | 25.4% | 21.8% | 10.5% |
| Neptune Group Ltd ($70) | 22.0% | 22.8% | 23.8% | 21.1% | |
| China LotSynergy Holdings Ltd ($1371) | 18.0% | 15.5% | 16.9% | 14.8% | |
| Pegasus Entertainment Holdings Ltd ($1326) | 94.5% | 82.1% | 18.5% | 10.3% | |
| SMI Holdings Group Ltd ($198) | 5.8% | 1.3% | 8.4% | 9.9% | |
| |
|---|
| Median (27 companies) | 2.8% | -1.1% | 1.3% | -0.9% | 5.8% |
|---|
| Bingo Group Holdings Ltd ($8220) | -75.9% | -80.0% | 5.1% | 5.4% | -27.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nan Hai Corp Ltd ($680) | 25.2x | 80.8x | 3.5x | 20.8x | |
| Cheung Wo International Holdings Ltd ($9) | 28.3x | | | 19.1x | |
| REXLot Holdings Ltd ($555) | 0.4x | -0.0x | -0.2x | 7.2x | |
| Orange Sky Golden Harvest Entertainment Holdings Ltd ($1132) | -0.8x | 1.1x | 4.2x | 2.7x | |
| China 3D Digital Entertainment Ltd ($8078) | -11.9x | | -0.5x | 2.3x | |
| |
|---|
| Median (19 companies) | -0.1x | -0.1x | -0.5x | -0.0x | -5.9x |
|---|
| Bingo Group Holdings Ltd ($8220) | | | -3.0x | -4.6x | |
