Phoenix Satellite Television Holdings Ltd reports 83.4% Net Income decline and 10.5 pp EBITDA Margin decline from 24.6% to 14.1%
17/03/2016 • About Phoenix Satellite Television Holdings Ltd (
$2008) • By InTwits
Phoenix Satellite Television Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Phoenix Satellite Television Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.8%. At the same time it's in pair with industry average of 8.6%.
- CAPEX is quite volatile: 103 in 2015, 529 in 2014, 407 in 2013, 521 in 2012, 533 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Phoenix Satellite Television Holdings Ltd ($2008) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,639 | 4,336 | 4,806 | 4,618 | 4,201 | -9.0% |
| SG&A | 387 | 548 | 621 | 721 | 738 | 2.4% |
| EBITDA | 1,086 | 1,305 | 1,494 | 1,136 | 593 | -47.8% |
| Net Income | -67 | 833 | 932 | 664 | 110 | -83.4% |
Balance Sheet
|
|---|
| Cash | 2,624 | 3,114 | 3,663 | 3,702 | 3,005 | -18.8% |
| Short Term Debt | 478 | 75 | 537 | 601 | 432 | -28.1% |
| Long Term Debt | 0 | 520 | 70 | 255 | 782 | 207.3% |
Cash flow
|
|---|
| Capex | 533 | 521 | 407 | 529 | 103 | -80.5% |
Ratios
|
|---|
| Revenue growth | 41.9% | 19.1% | 10.8% | -3.9% | -9.0% | |
| EBITDA growth | 25.9% | 20.1% | 14.5% | -24.0% | -47.8% | |
| EBITDA Margin | 29.8% | 30.1% | 31.1% | 24.6% | 14.1% | -10.5% |
| Net Income Margin | -1.8% | 19.2% | 19.4% | 14.4% | 2.6% | -11.7% |
| SG&A, % of revenue | 10.6% | 12.6% | 12.9% | 15.6% | 17.6% | 2.0% |
| CAPEX, % of revenue | 14.6% | 12.0% | 8.5% | 11.4% | 2.5% | -9.0% |
| ROIC | 21.5% | 18.5% | 18.4% | 11.7% | 3.9% | -7.8% |
| ROE | -2.3% | 21.4% | 20.3% | 13.0% | 2.2% | -10.9% |
| Net Debt/EBITDA | -2.0x | -1.9x | -2.0x | -2.5x | -3.0x | -0.5x |
Revenue and profitability
The company's Revenue decreased on 9.0% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 10.5 pp from 24.6% to 14.1% in 2015.
SG&A as a % of Revenue increased slightly on 2.0 pp from 15.6% to 17.6% in 2015.
Net Income marign dropped on 11.7 pp from 14.4% to 2.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Phoenix Satellite Television Holdings Ltd's CAPEX/Revenue was 2.5% in 2015. Phoenix Satellite Television Holdings Ltd showed decline in CAPEX/Revenue of 9.6 pp from 12.0% in 2012 to 2.5% in 2015. It's average CAPEX/Revenue for the last three years was 7.5%.
Return on investment
The company operates at low ROIC (3.91%) and ROE (2.15%). ROIC decreased on 7.8 pp from 11.7% to 3.9% in 2015. ROE dropped on 10.9 pp from 13.0% to 2.2% in 2015.
Leverage (Debt)
Debt level is -3.0x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from -2.5x to -3.0x in 2015. Debt surged on 41.9% in 2015 while cash dropped on 18.8% in 2015.
Appendix 1: Peers in Media
Below you can find Phoenix Satellite Television 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% | |
| 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) | 10.6% | 4.0% | -1.9% | -4.3% | -8.9% |
|---|
| Phoenix Satellite Television Holdings Ltd ($2008) | | 19.1% | 10.8% | -3.9% | -9.0% |
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% | 50.8% |
| 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% | 38.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SCMP Group Ltd ($583) | 26.9% | 23.5% | 20.5% | 218.1% | 193.5% |
| Television Broadcasts Ltd ($511) | 45.2% | 43.2% | 42.3% | 37.3% | |
| 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% | 11.0% |
|---|
| Phoenix Satellite Television Holdings Ltd ($2008) | 29.8% | 30.1% | 31.1% | 24.6% | 14.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SCMP Group Ltd ($583) | 3.6% | 7.0% | 5.3% | 52.2% | 85.2% |
| Culturecom Holdings Ltd ($343) | 12.5% | 10.2% | 38.6% | 24.5% | 7.0% |
| 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) | 4.0% | 2.7% | 5.2% | 2.3% | 4.8% |
|---|
| Phoenix Satellite Television Holdings Ltd ($2008) | 14.6% | 12.0% | 8.5% | 11.4% | 2.5% |
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% | |
| Modern Media Holdings ($72) | 23.8% | 20.6% | 10.4% | 9.3% | 5.5% |
| Next Media Ltd ($282) | 1.7% | 8.5% | 6.7% | 8.2% | 6.8% |
| |
|---|
| Median (19 companies) | 7.9% | 3.7% | 4.3% | 2.6% | 4.6% |
|---|
| Phoenix Satellite Television Holdings Ltd ($2008) | 21.5% | 18.5% | 18.4% | 11.7% | 3.9% |
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 | 1.0x |
| Next Media Ltd ($282) | 0.0x | 0.4x | 0.4x | -0.2x | -0.3x |
| |
|---|
| Median (13 companies) | -1.3x | -1.4x | -1.1x | -1.1x | 0.2x |
|---|
| Phoenix Satellite Television Holdings Ltd ($2008) | -2.0x | -1.9x | -2.0x | -2.5x | -3.0x |
