SEEC Media Group Ltd revenue decline accelerated to 35.4% in 2015 vs. 10.0% a year earliner
24/03/2016 • About SEEC Media Group Ltd (
$205) • By InTwits
SEEC Media Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SEEC Media Group Ltd is a company in decline: 2015 revenue growth was -35.4%, 5 years revenue CAGR was -4.0%
- The company operates at negative EBITDA Margin: -14.3%
- EBITDA Margin is quite volatile: -14.3% in 2015, -1.1% in 2014, 7.6% in 2013, 13.2% in 2012, 12.8% in 2011
- SEEC Media Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has unprofitable business model: ROIC is at -7.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SEEC Media Group Ltd ($205) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 482.5 | 516.6 | 492.9 | 443.6 | 286.7 | -35.4% |
| Gross Profit | 321.2 | 318.9 | 287.7 | 230.5 | 147.8 | -35.9% |
| SG&A | | 269.6 | 267.7 | 309.5 | 211.5 | -31.7% |
| EBITDA | 61.9 | 68.4 | 37.2 | -4.9 | -40.9 | 735.3% |
| Net Income | 35.0 | 32.2 | 17.4 | -121.2 | -200.1 | 65.0% |
Balance Sheet
|
|---|
| Cash | 98.1 | 38.0 | 82.2 | 138.2 | 746.7 | 440.5% |
| Short Term Debt | 30.5 | 36.7 | 55.7 | 0.0 | 35.0 | |
| Long Term Debt | 63.3 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 6.0 | 4.5 | 2.0 | 4.9 | 3.7 | -26.2% |
Ratios
|
|---|
| Revenue growth | 36.9% | 7.1% | -4.6% | -10.0% | -35.4% | |
| EBITDA growth | 22.4% | 10.6% | -45.6% | -113.2% | 735.3% | |
| Gross Margin | 66.6% | 61.7% | 58.4% | 52.0% | 51.6% | -0.4% |
| EBITDA Margin | 12.8% | 13.2% | 7.6% | -1.1% | -14.3% | -13.2% |
| Net Income Margin | 7.2% | 6.2% | 3.5% | -27.3% | -69.8% | -42.5% |
| SG&A, % of revenue | | 52.2% | 54.3% | 69.8% | 73.8% | 4.0% |
| CAPEX, % of revenue | 1.2% | 0.9% | 0.4% | 1.1% | 1.3% | 0.2% |
| ROIC | 9.4% | 10.7% | 4.1% | -4.6% | -7.5% | -2.9% |
| ROE | 10.2% | 8.4% | 4.2% | -30.1% | -30.2% | -0.1% |
| Net Debt/EBITDA | -0.1x | -0.0x | -0.7x | | | 0.0x |
Revenue and profitability
SEEC Media Group Ltd's Revenue dropped on 35.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 13.2 pp from -1.1% to -14.3% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 4.0 pp from 69.8% to 73.8% in 2015.
Net Income marign dropped on 42.5 pp from -27.3% to -69.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 SEEC Media Group Ltd had CAPEX/Revenue of 1.3%. CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 0.93%.
Return on investment
The company operates at negative ROIC (-7.45%) and ROE (-30.20%). ROIC decreased on 2.9 pp from -4.6% to -7.5% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is -4.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged while cash surged on 440% in 2015.
Appendix 1: Peers in Advertising
Below you can find SEEC Media Group Ltd benchmarking vs. other companies in Advertising 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 |
|---|
| Branding China Group Ltd ($8219) | 57.7% | 11.3% | 84.6% | 12.0% | |
| Clear Media Ltd ($100) | | 2.4% | 8.2% | 6.9% | 4.1% |
| Roadshow Holdings Ltd ($888) | | 13.4% | 9.7% | -0.5% | -10.3% |
| Dahe Media Co Ltd ($8243) | 4.0% | 5.8% | -5.7% | -1.6% | |
| SinoMedia Holding Ltd ($623) | | 1.5% | 7.6% | -7.5% | -23.1% |
| |
|---|
| Median (7 companies) | 40.7% | 5.8% | 8.2% | -1.6% | -10.3% |
|---|
| SEEC Media Group Ltd ($205) | | 7.1% | -4.6% | -10.0% | -35.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cinderella Media Group Ltd ($550) | 24.5% | 26.3% | 26.7% | 72.1% | |
| China Chuanglian Education Group Ltd ($2371) | -114.2% | -2,833.2% | 74.2% | 68.5% | |
| Clear Media Ltd ($100) | 37.2% | 38.3% | 40.4% | 41.2% | 43.9% |
| Dahe Media Co Ltd ($8243) | 34.4% | 35.3% | 36.7% | 40.7% | |
| SinoMedia Holding Ltd ($623) | 31.0% | 34.8% | 36.5% | 29.3% | 24.0% |
| |
|---|
| Median (6 companies) | 32.7% | 35.0% | 36.6% | 41.0% | 33.9% |
|---|
| SEEC Media Group Ltd ($205) | 66.6% | 61.7% | 58.4% | 52.0% | 51.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cinderella Media Group Ltd ($550) | 16.6% | 18.2% | 18.3% | 43.6% | |
| Clear Media Ltd ($100) | 38.2% | 41.0% | 40.9% | 41.3% | 44.0% |
| China Chuanglian Education Group Ltd ($2371) | -146.2% | -2,821.1% | 50.5% | 36.2% | |
| SinoMedia Holding Ltd ($623) | 23.4% | 27.3% | 30.5% | 24.9% | 16.7% |
| Roadshow Holdings Ltd ($888) | 19.6% | 22.6% | 26.3% | 20.5% | -8.0% |
| |
|---|
| Median (7 companies) | 19.6% | 22.6% | 26.3% | 24.9% | 16.7% |
|---|
| SEEC Media Group Ltd ($205) | 12.8% | 13.2% | 7.6% | -1.1% | -14.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cinderella Media Group Ltd ($550) | 2.9% | 1.5% | 5.1% | 6.8% | |
| SinoMedia Holding Ltd ($623) | 0.6% | 0.3% | 0.4% | 5.3% | 1.0% |
| Roadshow Holdings Ltd ($888) | 7.3% | 2.1% | 2.8% | 1.5% | 3.8% |
| Dahe Media Co Ltd ($8243) | 2.8% | 9.7% | 2.8% | 1.3% | |
| China Chuanglian Education Group Ltd ($2371) | 10.9% | 1.2% | 5.0% | 0.7% | |
| |
|---|
| Median (7 companies) | 2.8% | 1.2% | 2.8% | 1.3% | 3.8% |
|---|
| SEEC Media Group Ltd ($205) | 1.2% | 0.9% | 0.4% | 1.1% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SinoMedia Holding Ltd ($623) | 35.1% | 34.8% | 33.8% | 20.8% | 9.6% |
| Branding China Group Ltd ($8219) | 71.5% | 29.0% | 23.6% | 13.7% | |
| Clear Media Ltd ($100) | 9.4% | 9.2% | 10.8% | 12.4% | 14.4% |
| Roadshow Holdings Ltd ($888) | 9.1% | 12.9% | 16.4% | 11.8% | -8.0% |
| Dahe Media Co Ltd ($8243) | 8.1% | 6.9% | 5.3% | 6.9% | |
| |
|---|
| Median (7 companies) | 9.4% | 12.9% | 12.3% | 11.8% | 9.6% |
|---|
| SEEC Media Group Ltd ($205) | 9.4% | 10.7% | 4.1% | -4.6% | -7.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dahe Media Co Ltd ($8243) | 1.1x | 1.3x | 1.7x | 2.3x | |
| Clear Media Ltd ($100) | -1.7x | -2.1x | -1.3x | -1.4x | -0.9x |
| Branding China Group Ltd ($8219) | -1.1x | -1.8x | -1.4x | -1.6x | |
| SinoMedia Holding Ltd ($623) | -2.4x | -3.2x | -2.0x | -1.6x | -1.9x |
| China Chuanglian Education Group Ltd ($2371) | | | -0.7x | -2.8x | |
| |
|---|
| Median (7 companies) | -1.4x | -1.7x | -1.4x | -1.6x | -1.4x |
|---|
