SCMP Group Ltd Net Income surged on 131% in 2015 while EBITDA Margin dropped on 24.7 pp from 218% to 193%
14/03/2016 • About SCMP Group Ltd (
$583) • By InTwits
SCMP Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SCMP Group Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.2%
- EBITDA Margin is quite volatile: 193.5% in 2015, 218.1% in 2014, 20.5% in 2013, 23.5% in 2012, 26.9% in 2011
- SCMP Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 30.7%. At the same time it's a lot of higher than industry average of 9.2%.
- CAPEX is quite volatile: 45.0 in 2015, 24.5 in 2014, 60.2 in 2013, 71.7 in 2012, 34.3 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.2%
- It operates with high leverage: Net Debt/EBITDA is -0.4x while industry average is -1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SCMP Group Ltd ($583) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 946 | 1,020 | 1,147 | 47 | 53 | 12.5% |
| EBITDA | 255 | 240 | 235 | 102 | 102 | -0.2% |
| Net Income | 410 | 316 | 224 | 137 | 316 | 131.2% |
Balance Sheet
|
|---|
| Cash | 325 | 319 | 396 | 464 | 39 | -91.5% |
| Short Term Debt | 0 | 9 | 0 | 7 | 0 | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 34 | 72 | 60 | 25 | 45 | 83.7% |
Ratios
|
|---|
| Revenue growth | 7.4% | 7.8% | 12.5% | -95.9% | 12.5% | |
| EBITDA growth | 15.8% | -5.7% | -2.1% | -56.4% | -0.2% | |
| EBITDA Margin | 26.9% | 23.5% | 20.5% | 218.1% | 193.5% | -24.7% |
| Net Income Margin | 43.3% | 31.0% | 19.5% | 291.3% | 598.6% | 307.3% |
| CAPEX, % of revenue | 3.6% | 7.0% | 5.3% | 52.2% | 85.2% | 33.0% |
| ROIC | 7.3% | 6.3% | 5.5% | 1.1% | 1.2% | 0.1% |
| ROE | 15.9% | 11.2% | 7.4% | 4.4% | 9.8% | 5.4% |
| Net Debt/EBITDA | -1.3x | -1.3x | -1.7x | -4.5x | -0.4x | 4.1x |
Revenue and profitability
The company's Revenue surged on 12.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 33.1 pp from -39.0% to -5.9% in FY2015.
Net Income marign jumped on 307 pp from 291% to 599% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 SCMP Group Ltd had CAPEX/Revenue of 85.2%. CAPEX/Revenue surged on 78.1 pp from 7.0% in 2012 to 85.2% in 2015. Average CAPEX/Revenue for the last three years was 47.5%.
Return on investment
The company operates at low ROIC (1.18%) and ROE (9.83%). ROIC showed almost no change in 2015. ROE increased on 5.4 pp from 4.4% to 9.8% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash dropped on 91.5% in 2015.
Appendix 1: Peers in Media
Below we provide SCMP 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) | | -24.2% | -7.7% | 16.4% | -20.3% |
| 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% |
| |
|---|
| Median (19 companies) | 16.1% | 4.0% | -1.9% | -3.9% | -9.5% |
|---|
| SCMP Group Ltd ($583) | | 7.8% | 12.5% | -95.9% | 12.5% |
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% | 94.4% |
| 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 (17 companies) | 45.7% | 38.5% | 39.5% | 36.1% | 38.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Tom Group Ltd ($2383) | -10.8% | -3.3% | -11.6% | 15.8% | 9.9% |
| |
|---|
| Median (19 companies) | 13.3% | 9.9% | 11.5% | 9.8% | 10.9% |
|---|
| SCMP Group Ltd ($583) | 26.9% | 23.5% | 20.5% | 218.1% | 193.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Culturecom Holdings Ltd ($343) | 12.5% | 10.2% | 38.6% | 24.5% | 7.0% |
| 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% | 13.0% |
| 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) | 4.6% | 2.7% | 5.2% | 2.3% | 4.6% |
|---|
| SCMP Group Ltd ($583) | 3.6% | 7.0% | 5.3% | 52.2% | 85.2% |
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% | 3.7% | 4.3% | 2.6% | 4.6% |
|---|
| SCMP Group Ltd ($583) | 7.3% | 6.3% | 5.5% | 1.1% | 1.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tom Group Ltd ($2383) | | | | 8.1x | 16.7x |
| 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 | 2.0x |
| 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 (13 companies) | -1.6x | -1.9x | -1.1x | -1.1x | 0.2x |
|---|
| SCMP Group Ltd ($583) | -1.3x | -1.3x | -1.7x | -4.5x | -0.4x |
