Cinderella Media Group Ltd reports 133% Net Income decline and 33.3 pp EBITDA Margin decline from 43.6% to 10.3%
30/03/2016 • About Cinderella Media Group Ltd (
$550) • By InTwits
Cinderella Media Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 10.3% in 2015, 43.6% in 2014, 18.3% in 2013, 18.2% in 2012, 16.6% in 2011
- Cinderella Media Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's a lot of higher than industry average of 28.8%.
- CAPEX is quite volatile: 1.7 in 2015, 4.1 in 2014, 28.3 in 2013, 23.3 in 2012, 41.9 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cinderella Media Group Ltd ($550) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,425 | 1,526 | 556 | 60 | 63 | 4.9% |
| Gross Profit | 349 | 401 | 149 | 43 | 46 | 5.8% |
| SG&A | | | 82 | 30 | 42 | 38.6% |
| EBITDA | 236 | 278 | 102 | 26 | 6 | -75.3% |
| Net Income | 174 | 162 | 125 | 79 | -26 | -133.0% |
Balance Sheet
|
|---|
| Cash | 407 | 443 | 383 | 152 | 91 | -40.1% |
| Short Term Debt | 140 | 125 | 65 | 8 | 0 | -100.0% |
| Long Term Debt | 7 | 1 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 42 | 23 | 28 | 4 | 2 | -59.0% |
Ratios
|
|---|
| Revenue growth | 23.7% | 7.1% | -63.6% | -89.2% | 4.9% | |
| EBITDA growth | 11.4% | 17.5% | -63.4% | -74.4% | -75.3% | |
| Gross Margin | 24.5% | 26.3% | 26.7% | 72.1% | 72.8% | 0.6% |
| EBITDA Margin | 16.6% | 18.2% | 18.3% | 43.6% | 10.3% | -33.3% |
| Net Income Margin | 12.2% | 10.6% | 22.5% | 131.7% | -41.5% | -173.2% |
| SG&A, % of revenue | | | 14.7% | 50.6% | 66.8% | 16.2% |
| CAPEX, % of revenue | 2.9% | 1.5% | 5.1% | 6.8% | 2.7% | -4.2% |
| ROIC | 24.7% | 24.6% | 6.7% | 2.3% | 2.7% | 0.4% |
| ROE | 31.3% | 26.0% | 19.6% | 19.2% | -16.8% | -36.0% |
| Net Debt/EBITDA | -1.1x | -1.1x | -3.1x | -5.5x | -14.1x | -8.6x |
Revenue and profitability
Cinderella Media Group Ltd's Revenue increased on 4.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 38.0 pp from -70.9% to -33.0% in 2015.
Gross Margin increased slightly on 0.63 pp from 72.1% to 72.8% in 2015. SG&A as a % of Revenue jumped on 16.2 pp from 50.6% to 66.8% in 2015.
Net Income marign dropped on 173 pp from 132% to -41.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Cinderella Media Group Ltd's CAPEX/Revenue was 2.7% in 2015. Cinderella Media Group Ltd's CAPEX/Revenue increased slightly on 1.1 pp from 1.5% in 2012 to 2.7% in 2015. It's average CAPEX/Revenue for the last three years was 4.9%.
Return on investment
The company operates at low but positive ROIC (2.67%) and negative ROE (-16.80%). ROIC showed almost no change in 2015. ROE dropped on 36.0 pp from 19.2% to -16.8% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash dropped on 40.1% in 2015.
Appendix 1: Peers in Advertising
Below we provide Cinderella Media Group Ltd benchmarking against other companies in Advertising 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 Chuanglian Education Group Ltd ($2371) | | -40.5% | 332.3% | -21.8% | 26.5% |
| Dahe Media Co Ltd ($8243) | | 5.8% | -5.7% | -1.6% | 8.8% |
| Branding China Group Ltd ($8219) | | 11.3% | 84.6% | 12.0% | 4.5% |
| Clear Media Ltd ($100) | | 2.4% | 8.2% | 6.9% | 4.1% |
| Roadshow Holdings Ltd ($888) | | 13.4% | 9.7% | -0.5% | -10.3% |
| |
|---|
| Median (7 companies) | | 5.8% | 8.2% | -1.6% | 4.1% |
|---|
| Cinderella Media Group Ltd ($550) | | 7.1% | -63.6% | -89.2% | 4.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Chuanglian Education Group Ltd ($2371) | -114.2% | -2,833.2% | 74.2% | 68.5% | 64.3% |
| SEEC Media Group Ltd ($205) | 66.6% | 61.7% | 58.4% | 52.0% | 51.6% |
| 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% | 29.5% |
| Branding China Group Ltd ($8219) | 44.6% | 39.4% | 33.4% | 27.3% | 29.5% |
| |
|---|
| Median (6 companies) | 35.8% | 36.8% | 38.6% | 41.0% | 36.7% |
|---|
| Cinderella Media Group Ltd ($550) | 24.5% | 26.3% | 26.7% | 72.1% | 72.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Clear Media Ltd ($100) | 38.2% | 41.0% | 40.9% | 41.3% | 44.0% |
| Dahe Media Co Ltd ($8243) | 18.1% | 16.0% | 15.3% | 19.4% | 17.2% |
| Branding China Group Ltd ($8219) | 36.3% | 30.3% | 26.2% | 18.6% | 17.0% |
| SinoMedia Holding Ltd ($623) | 23.4% | 27.3% | 30.5% | 24.9% | 16.7% |
| China Chuanglian Education Group Ltd ($2371) | -146.2% | -2,821.1% | 50.5% | 36.2% | 7.7% |
| |
|---|
| Median (7 companies) | 19.6% | 22.6% | 26.3% | 20.5% | 16.7% |
|---|
| Cinderella Media Group Ltd ($550) | 16.6% | 18.2% | 18.3% | 43.6% | 10.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Clear Media Ltd ($100) | 0.8% | 0.6% | 0.5% | 0.6% | 28.0% |
| China Chuanglian Education Group Ltd ($2371) | 10.9% | 1.2% | 5.0% | 0.7% | 14.2% |
| Roadshow Holdings Ltd ($888) | 7.3% | 2.1% | 2.8% | 1.5% | 3.8% |
| SEEC Media Group Ltd ($205) | 1.2% | 0.9% | 0.4% | 1.1% | 1.3% |
| SinoMedia Holding Ltd ($623) | 0.6% | 0.3% | 0.4% | 5.3% | 1.0% |
| |
|---|
| Median (7 companies) | 1.2% | 0.9% | 0.5% | 1.1% | 1.3% |
|---|
| Cinderella Media Group Ltd ($550) | 2.9% | 1.5% | 5.1% | 6.8% | 2.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Clear Media Ltd ($100) | 9.4% | 9.2% | 10.8% | 12.4% | 14.4% |
| Branding China Group Ltd ($8219) | 71.5% | 29.0% | 23.6% | 13.7% | 12.0% |
| SinoMedia Holding Ltd ($623) | 35.1% | 34.8% | 33.8% | 20.8% | 9.6% |
| Dahe Media Co Ltd ($8243) | 8.1% | 6.9% | 5.3% | 6.9% | 6.8% |
| China Chuanglian Education Group Ltd ($2371) | -12.9% | -171.2% | 12.3% | 1.9% | -1.4% |
| |
|---|
| Median (7 companies) | 9.4% | 10.7% | 12.3% | 11.8% | 6.8% |
|---|
| Cinderella Media Group Ltd ($550) | 24.7% | 24.6% | 6.7% | 2.3% | 2.7% |
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 | 3.0x |
| Clear Media Ltd ($100) | -1.7x | -2.1x | -1.3x | -1.4x | -0.9x |
| SinoMedia Holding Ltd ($623) | -2.4x | -3.2x | -2.0x | -1.6x | -1.9x |
| Branding China Group Ltd ($8219) | -1.1x | -1.8x | -1.4x | -1.6x | -2.7x |
| China Chuanglian Education Group Ltd ($2371) | | | -0.7x | -2.8x | -25.0x |
| |
|---|
| Median (5 companies) | -1.4x | -1.7x | -1.3x | -1.6x | -1.9x |
|---|
| Cinderella Media Group Ltd ($550) | -1.1x | -1.1x | -3.1x | -5.5x | -14.1x |
