Culturecom Holdings Ltd reports 77.3% CAPEX decline and 20.3% Revenue decline
26/06/2015 • About Culturecom Holdings Ltd (
$343) • By InTwits
Culturecom Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Culturecom Holdings Ltd is a company in decline: FY2015 revenue growth was -20.3%, 5 years revenue CAGR was -7.4%
- The company operates at negative EBITDA Margin: -399.1%
- Culturecom 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 -375.1%0
- Culturecom Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.6%. At the same time it's a lot of higher than industry average of 7.4%.
- CAPEX is quite volatile: 1.7 in FY2015, 7.6 in FY2014, 10.4 in FY2013, 3.0 in FY2012, 4.8 in FY2011
- The company has unprofitable business model: ROIC is at -34.8%
- It operates with high leverage: Net Debt/EBITDA is -0.8x 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.
Culturecom Holdings Ltd ($343) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 38.333 | 29.061 | 26.813 | 31.216 | 24.891 | -20.3% |
| Gross Profit | 16.730 | 12.515 | 12.555 | 7.644 | 2.640 | -65.5% |
| EBITDA | -100.482 | 21.450 | -241.522 | -143.908 | -99.332 | -31.0% |
| Net Income | 9.006 | -49.107 | -297.629 | -147.229 | -115.684 | -21.4% |
Balance Sheet
|
|---|
| Cash | 258.176 | 434.531 | 300.461 | 182.802 | 138.818 | -24.1% |
| Short Term Debt | 0.043 | 0.043 | 0.007 | 0.000 | 0.000 | |
| Long Term Debt | 0.050 | 0.007 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 4.775 | 2.977 | 10.360 | 7.640 | 1.731 | -77.3% |
Ratios
|
|---|
| Revenue growth | 4.7% | -24.2% | -7.7% | 16.4% | -20.3% | |
| EBITDA growth | 109.5% | -121.3% | -1,226.0% | -40.4% | -31.0% | |
| Gross Margin | 43.6% | 43.1% | 46.8% | 24.5% | 10.6% | -13.9% |
| EBITDA Margin | -262.1% | 73.8% | -900.8% | -461.0% | -399.1% | 61.9% |
| Net Income Margin | 23.5% | -169.0% | -1,110.0% | -471.6% | -464.8% | 6.9% |
| CAPEX, % of revenue | 12.5% | 10.2% | 38.6% | 24.5% | 7.0% | -17.5% |
| ROIC | -16.2% | 0.2% | -39.2% | -35.4% | -34.8% | 0.6% |
| ROE | 1.3% | -6.4% | -47.7% | -35.4% | -36.9% | -1.5% |
| Net Debt/EBITDA | | -20.3x | | | | 0.0x |
Revenue and profitability
Culturecom Holdings Ltd's Revenue dropped on 20.3% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 61.9 pp from -461% to -399% in FY2015.
Gross Margin dropped on 13.9 pp from 24.5% to 10.6% in FY2015.
Net Income marign increased on 6.9 pp from -472% to -465% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Culturecom Holdings Ltd's CAPEX/Revenue was 7.0% in FY2015. CAPEX/Revenue decreased on 3.3 pp from 10.2% in FY2012 to 7.0% in FY2015. For the last three years the average CAPEX/Revenue was 23.4%.
Return on investment
The company operates at negative ROIC (-34.83%) and ROE (-36.94%). ROIC increased slightly on 0.60 pp from -35.4% to -34.8% in FY2015. ROE decreased slightly on 1.5 pp from -35.4% to -36.9% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 24.1% in FY2015.
Appendix 1: Peers in Media
Below you can find Culturecom Holdings Ltd benchmarking vs. other companies in Media 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 |
|---|
| CMMB Vision Holdings Ltd ($471) | | | 168.1% | 27.8% | |
| 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) | | 5.6% | 2.7% | 3.1% | 5.3% |
| Beijing Media Corp Ltd ($1000) | -1.5% | -7.6% | -1.8% | 2.3% | |
| |
|---|
| Median (19 companies) | 9.9% | 4.5% | -1.8% | -4.3% | -8.4% |
|---|
| Culturecom Holdings Ltd ($343) | | -24.2% | -7.7% | 16.4% | -20.3% |
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% | |
| One Media Group Ltd ($426) | 52.0% | 57.3% | 56.7% | 54.5% | 52.7% |
| Focus Media Network Ltd ($8112) | 81.0% | 68.0% | 67.2% | 50.8% | |
| |
|---|
| Median (16 companies) | 47.8% | 37.5% | 38.5% | 36.2% | 38.6% |
|---|
| Culturecom Holdings Ltd ($343) | 43.6% | 43.1% | 46.8% | 24.5% | 10.6% |
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% | |
| One Media Group Ltd ($426) | 14.4% | 18.7% | 23.0% | 22.8% | 15.2% |
| Media Chinese International Ltd ($685) | 20.0% | 20.0% | 18.3% | 18.1% | 16.5% |
| |
|---|
| Median (19 companies) | 15.1% | 9.9% | 11.6% | 12.5% | 13.9% |
|---|
| Culturecom Holdings Ltd ($343) | -262.1% | 73.8% | -900.8% | -461.0% | -399.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SCMP Group Ltd ($583) | 3.6% | 7.0% | 5.3% | 52.2% | |
| 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% | |
| Focus Media Network Ltd ($8112) | 3.4% | 2.7% | 2.4% | 9.6% | |
| |
|---|
| Median (19 companies) | 4.0% | 2.7% | 5.2% | 2.3% | 1.9% |
|---|
| Culturecom Holdings Ltd ($343) | 12.5% | 10.2% | 38.6% | 24.5% | 7.0% |
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% |
| One Media Group Ltd ($426) | 17.1% | 25.6% | 21.8% | 16.0% | 8.9% |
| 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% | |
| |
|---|
| Median (19 companies) | 9.8% | 5.6% | 5.1% | 2.6% | 6.8% |
|---|
| Culturecom Holdings Ltd ($343) | -16.2% | 0.2% | -39.2% | -35.4% | -34.8% |
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 | -0.3x |
| |
|---|
| Median (14 companies) | -1.3x | -1.4x | -1.3x | -1.3x | -0.1x |
|---|
