V1 Group Ltd Net Income surged on 208% in 2015 while Revenue dropped on 62.1%
18/03/2016 • About V1 Group Ltd (
$82) • By InTwits
V1 Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- V1 Group Ltd is a company in decline: 2015 revenue growth was -62.1%, 5 years revenue CAGR was -30.6%
- The company operates at negative EBITDA Margin: -402.3%
- V1 Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -1.9% for the sames years0
- V1 Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.1%. At the same time it's a lot of higher than industry average of 11.2%.
- CAPEX is quite volatile: 4.8 in 2015, 33.1 in 2014, 19.1 in 2013, 9.3 in 2012, 13.4 in 2011
- The company has unprofitable business model: ROIC is at -18.1%
- It operates with high leverage: Net Debt/EBITDA is -0.7x 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.
V1 Group Ltd ($82) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 950.1 | 476.8 | 595.1 | 326.4 | 123.6 | -62.1% |
| Gross Profit | 665.2 | 268.3 | 196.3 | 5.4 | -132.6 | -2,560.3% |
| SG&A | 385.6 | 253.6 | 386.9 | 257.8 | 409.2 | 58.7% |
| EBITDA | 498.5 | 106.9 | -49.5 | -106.2 | -497.0 | 367.9% |
| Net Income | 370.7 | -3.1 | -160.0 | -131.6 | 142.7 | -208.4% |
Balance Sheet
|
|---|
| Cash | 387.8 | 364.5 | 616.1 | 602.7 | 1,591.4 | 164.0% |
| Short Term Debt | 0.0 | 0.0 | 17.9 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 13.4 | 9.3 | 19.1 | 33.1 | 4.8 | -85.6% |
Ratios
|
|---|
| Revenue growth | 23.8% | -49.8% | 24.8% | -45.1% | -62.1% | |
| EBITDA growth | 26.5% | -78.6% | -146.3% | 114.7% | 367.9% | |
| Gross Margin | 70.0% | 56.3% | 33.0% | 1.7% | -107.3% | -108.9% |
| EBITDA Margin | 52.5% | 22.4% | -8.3% | -32.5% | -402.3% | -369.7% |
| Net Income Margin | 39.0% | -0.7% | -26.9% | -40.3% | 115.5% | 155.8% |
| SG&A, % of revenue | 40.6% | 53.2% | 65.0% | 79.0% | 331.2% | 252.2% |
| CAPEX, % of revenue | 1.4% | 1.9% | 3.2% | 10.1% | 3.9% | -6.3% |
| ROIC | 19.5% | 1.0% | -4.8% | -6.9% | -18.1% | -11.2% |
| ROE | 17.1% | -0.1% | -5.7% | -4.4% | 4.7% | 9.1% |
| Net Debt/EBITDA | -0.8x | -3.4x | | | | 0.0x |
Revenue and profitability
V1 Group Ltd's Revenue dropped on 62.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 370 pp from -32.5% to -402% in 2015.
Gross Margin dropped on 109 pp from 1.7% to -107% in 2015. SG&A as a % of Revenue jumped on 252 pp from 79.0% to 331% in 2015.
Net Income marign surged on 156 pp from -40.3% to 115% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 V1 Group Ltd had CAPEX/Revenue of 3.9%. The company showed small growth in CAPEX/Revenue of 1.9 pp from 1.9% in 2012 to 3.9% in 2015. It's average CAPEX/Revenue for the last three years was 5.7%.
Return on investment
The company operates at negative ROIC (-18.11%) and low but positive ROE (4.72%). ROIC dropped on 11.2 pp from -6.9% to -18.1% in 2015. ROE increased on 9.1 pp from -4.4% to 4.7% in 2015.
Leverage (Debt)
The company has no debt. Cash surged on 164% in 2015.
Appendix 1: Peers in Media
Below we provide V1 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) | 9.9% | 4.5% | -1.9% | -3.9% | -9.0% |
|---|
| V1 Group Ltd ($82) | | -49.8% | 24.8% | -45.1% | -62.1% |
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 (16 companies) | 43.6% | 37.5% | 40.5% | 36.2% | 38.6% |
|---|
| V1 Group Ltd ($82) | 70.0% | 56.3% | 33.0% | 1.7% | -107.3% |
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% | |
| Phoenix Satellite Television Holdings Ltd ($2008) | 29.8% | 30.1% | 31.1% | 24.6% | 14.1% |
| 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) | 13.3% | 9.9% | 11.6% | 12.5% | 12.0% |
|---|
| V1 Group Ltd ($82) | 52.5% | 22.4% | -8.3% | -32.5% | -402.3% |
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% |
| Phoenix Satellite Television Holdings Ltd ($2008) | 14.6% | 12.0% | 8.5% | 11.4% | 2.5% |
| I-CABLE Communications Ltd ($1097) | 10.6% | 10.1% | 7.6% | 11.3% | 13.0% |
| Focus Media Network Ltd ($8112) | 3.4% | 2.7% | 2.4% | 9.6% | |
| |
|---|
| Median (19 companies) | 4.6% | 3.9% | 5.3% | 2.3% | 2.6% |
|---|
| V1 Group Ltd ($82) | 1.4% | 1.9% | 3.2% | 10.1% | 3.9% |
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% | 3.9% |
| Modern Media Holdings ($72) | 23.8% | 20.6% | 10.4% | 9.3% | 5.5% |
| |
|---|
| Median (19 companies) | 7.9% | 5.6% | 5.1% | 2.6% | 4.0% |
|---|
| V1 Group Ltd ($82) | 19.5% | 1.0% | -4.8% | -6.9% | -18.1% |
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 (14 companies) | -1.6x | -1.4x | -1.3x | -1.3x | 0.0x |
|---|
