MelcoLot Ltd revenue jumped on 26.2% in 2015 and EBITDA Margin jumped on 50.3 pp from -124% to -74.2%
11/03/2016 • About MelcoLot Ltd (
$8198) • By InTwits
MelcoLot Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- MelcoLot Ltd doesn't have a profitable business model yet: 2015 ROIC is -9.8%
- The company operates at negative EBITDA Margin: -74.2%
- MelcoLot Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -52.6% for the sames years0
- MelcoLot Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 0.061 in 2015, 0.16 in 2014, 0.094 in 2013, 1.1 in 2012, 7.4 in 2011
- The company has unprofitable business model: ROIC is at -9.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
MelcoLot Ltd ($8198) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 96.622 | 86.940 | 54.561 | 45.284 | 57.163 | 26.2% |
| Gross Profit | | | | 5.675 | 4.623 | -18.5% |
| EBITDA | -44.771 | -25.141 | -10.546 | -56.362 | -42.406 | -24.8% |
| Net Income | -209.219 | 78.981 | -17.117 | -65.403 | -35.934 | -45.1% |
Balance Sheet
|
|---|
| Cash | 26.676 | 29.121 | 56.199 | 299.190 | 115.689 | -61.3% |
| Short Term Debt | 634.714 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 173.054 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 7.394 | 1.069 | 0.094 | 0.158 | 0.061 | -61.4% |
Ratios
|
|---|
| Revenue growth | 19.9% | -10.0% | -37.2% | -17.0% | 26.2% | |
| EBITDA growth | 41.1% | -43.8% | -58.1% | 434.4% | -24.8% | |
| Gross Margin | | | | 12.5% | 8.1% | -4.4% |
| EBITDA Margin | -46.3% | -28.9% | -19.3% | -124.5% | -74.2% | 50.3% |
| Net Income Margin | -216.5% | 90.8% | -31.4% | -144.4% | -62.9% | 81.6% |
| CAPEX, % of revenue | 7.7% | 1.2% | 0.2% | 0.3% | 0.1% | -0.2% |
| ROIC | -17.8% | -161.5% | | -43.7% | -9.8% | 33.9% |
| ROE | | | | | -8.8% | -8.8% |
Revenue and profitability
The company's Revenue surged on 26.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.4 pp from -32.8% to -49.2% in 2015.
Gross Margin decreased on 4.4 pp from 12.5% to 8.1% in 2015.
Net Income marign jumped on 81.6 pp from -144% to -62.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 MelcoLot Ltd had CAPEX/Revenue of 0.11%. CAPEX/Revenue decreased slightly on 1.1 pp from 1.2% in 2012 to 0.11% in 2015. Average CAPEX/Revenue for the last three years was 0.21%.
Return on investment
The company operates at negative ROIC (-9.79%) and ROE (-8.81%). ROIC surged on 33.9 pp from -43.7% to -9.8% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 61.3% in 2015.
Appendix 1: Peers in Entertainment
Below we provide MelcoLot Ltd benchmarking against other companies in Entertainment 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 |
|---|
| 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) | 22.5% | 2.9% | 14.1% | 1.2% | -2.7% |
|---|
| MelcoLot Ltd ($8198) | | -10.0% | -37.2% | -17.0% | 26.2% |
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) | 46.1% | 44.8% | 52.7% | 44.1% | 52.6% |
|---|
| MelcoLot Ltd ($8198) | | | | 12.5% | 8.1% |
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% | 22.1% | 19.7% | 18.3% | 2.4% |
|---|
| MelcoLot Ltd ($8198) | -46.3% | -28.9% | -19.3% | -124.5% | -74.2% |
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% | 9.0% | 5.0% | 4.2% |
|---|
| MelcoLot Ltd ($8198) | 7.7% | 1.2% | 0.2% | 0.3% | 0.1% |
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% | 2.3% | 0.3% | 0.7% |
|---|
| MelcoLot Ltd ($8198) | -17.8% | -161.5% | | -43.7% | -9.8% |
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 | -0.7x |
|---|
