Neo Telemedia Ltd reports 5,442% revenue growth in 2015 and 121 pp EBITDA Margin growth from -119% to 2.4%
18/02/2016 • About Neo Telemedia Ltd (
$8167) • By InTwits
Neo Telemedia Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Neo Telemedia Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.7%
- The company has potentially unprofitable business model: ROIC is at 0.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Neo Telemedia Ltd ($8167) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 27 | 100 | 40 | 35 | 1,915 | 5,442.4% |
| Gross Profit | 22 | 91 | 29 | 11 | 101 | 824.0% |
| SG&A | | | 94 | 121 | 106 | -12.1% |
| EBITDA | -13 | 46 | -24 | -41 | 46 | -212.5% |
| Net Income | -36 | -465 | -41 | -567 | -32 | -94.3% |
Balance Sheet
|
|---|
| Cash | 12 | 8 | 49 | 32 | 1,112 | 3,411.3% |
| Short Term Debt | 24 | 0 | 27 | 0 | 184 | |
| Long Term Debt | 0 | 0 | 161 | 149 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 15 | 2 | | 2 | 4 | 121.8% |
Ratios
|
|---|
| Revenue growth | -39.1% | 268.8% | -60.2% | -13.4% | 5,442.4% | |
| EBITDA growth | 290.2% | -442.5% | -152.7% | 69.8% | -212.5% | |
| Gross Margin | 80.3% | 90.6% | 73.5% | 31.6% | 5.3% | -26.3% |
| EBITDA Margin | -49.2% | 45.7% | -60.6% | -118.8% | 2.4% | 121.2% |
| Net Income Margin | -133.5% | -464.3% | -102.5% | -1,642.2% | -1.7% | 1,640.6% |
| SG&A, % of revenue | | | 235.9% | 350.4% | 5.6% | -344.8% |
| CAPEX, % of revenue | 54.7% | 1.8% | | 5.2% | 0.2% | -4.9% |
| ROIC | -3.4% | -1.9% | -5.5% | -12.0% | 0.7% | 12.6% |
| ROE | -5.5% | -65.5% | -6.9% | | | 0.0% |
| Net Debt/EBITDA | | -0.2x | | | -20.1x | -20.1x |
Revenue and profitability
The company's Revenue surged on 5,442% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 121 pp from -119% to 2.4% in 2015.
Gross Margin dropped on 26.3 pp from 31.6% to 5.3% in 2015. SG&A as a % of Revenue dropped on 345 pp from 350% to 5.6% in 2015.
Net Income marign jumped on 1,641 pp from -1,642% to -1.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.21%. CAPEX/Revenue decreased slightly on 1.5 pp from 1.8% in 2012 to 0.21% in 2015.
Leverage (Debt)
Debt level is -20.1x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA dropped20.1x from to -20.1x in 2015. Debt jumped on 23.4% in 2015 while cash jumped on 3,411% in 2015.
Appendix 1: Peers in Entertainment
Below you can find Neo Telemedia 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) | | -67.2% | 295.2% | 185.2% | -44.3% |
| Universe International Holdings Ltd ($1046) | | -42.2% | 4.3% | 159.4% | 46.3% |
| China Vanguard Group Ltd ($8156) | | -7.0% | -62.7% | 145.0% | 29.2% |
| 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) | 20.7% | -0.7% | 14.1% | 1.2% | -3.5% |
|---|
| Neo Telemedia Ltd ($8167) | | 268.8% | -60.2% | -13.4% | 5,442.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amax International Holdings Ltd ($959) | | | 92.1% | 98.6% | 96.6% |
| China Vanguard Group Ltd ($8156) | 65.0% | 63.8% | 88.2% | 93.8% | 95.2% |
| 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) | 43.8% | 42.8% | 48.7% | 44.1% | 57.4% |
|---|
| Neo Telemedia Ltd ($8167) | 80.3% | 90.6% | 73.5% | 31.6% | 5.3% |
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% | 99.0% |
| Universe International Holdings Ltd ($1046) | 62.2% | 36.6% | 44.6% | 74.6% | 73.6% |
| 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% | 19.7% | 19.7% | 18.3% | -5.7% |
|---|
| Neo Telemedia Ltd ($8167) | -49.2% | 45.7% | -60.6% | -118.8% | 2.4% |
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% | 1.8% |
| Nan Hai Corp Ltd ($680) | 29.1% | 19.2% | 35.2% | 18.2% | |
| |
|---|
| Median (26 companies) | 7.2% | 9.7% | 7.8% | 4.7% | 6.2% |
|---|
| Neo Telemedia Ltd ($8167) | 54.7% | 1.8% | | 5.2% | 0.2% |
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% | 18.1% |
| 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% | -21.3% |
| SMI Holdings Group Ltd ($198) | 5.8% | 1.3% | 8.4% | 9.9% | |
| |
|---|
| Median (27 companies) | 2.8% | -1.1% | 3.7% | 0.3% | -0.4% |
|---|
| Neo Telemedia Ltd ($8167) | -3.4% | -1.9% | -5.5% | -12.0% | 0.7% |
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 (20 companies) | -0.1x | -0.1x | -0.6x | -0.2x | -0.6x |
|---|
