Beijing Media Corp Ltd reports 341% EBITDA decline and 11.8 pp EBITDA Margin decline from 2.8% to -9.0%
31/03/2016 • About Beijing Media Corp Ltd (
$1000) • By InTwits
Beijing Media Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Beijing Media Corp Ltd is a company in decline: 2015 revenue growth was -25.0%, 5 years revenue CAGR was -7.3%
- The company operates at negative EBITDA Margin: -9.0%
- Beijing Media Corp Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -1.1%0
- Beijing Media Corp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 17.7%.
- CAPEX is quite volatile: 3.4 in 2015, 11.7 in 2014, 16.3 in 2013, 2.3 in 2012, 1.4 in 2011
- The company has unprofitable business model: ROIC is at -3.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beijing Media Corp Ltd ($1000) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 721.6 | 666.6 | 654.3 | 669.1 | 501.8 | -25.0% |
| Gross Profit | 78.5 | 58.4 | 80.7 | 131.9 | 97.6 | -26.0% |
| SG&A | | 64.9 | 74.5 | 102.1 | 131.0 | 28.3% |
| EBITDA | -7.7 | -4.8 | 4.0 | 18.7 | -45.1 | -340.9% |
| Net Income | 119.9 | 65.0 | 20.4 | 10.5 | -45.4 | -531.9% |
Balance Sheet
|
|---|
| Cash | 170.5 | 828.9 | 562.2 | 366.3 | 350.0 | -4.5% |
| Short Term Debt | 40.3 | 93.0 | 96.0 | 89.0 | 41.6 | -53.3% |
| Long Term Debt | 3.7 | 0.0 | 0.0 | 12.0 | 5.5 | -54.2% |
Cash flow
|
|---|
| Capex | 1.4 | 2.3 | 16.3 | 11.7 | 3.4 | -70.9% |
Ratios
|
|---|
| Revenue growth | -1.5% | -7.6% | -1.8% | 2.3% | -25.0% | |
| EBITDA growth | -112.7% | -37.6% | -182.6% | 373.5% | -340.9% | |
| Gross Margin | 10.9% | 8.8% | 12.3% | 19.7% | 19.4% | -0.3% |
| EBITDA Margin | -1.1% | -0.7% | 0.6% | 2.8% | -9.0% | -11.8% |
| Net Income Margin | 16.6% | 9.7% | 3.1% | 1.6% | -9.0% | -10.6% |
| SG&A, % of revenue | | 9.7% | 11.4% | 15.3% | 26.1% | 10.8% |
| CAPEX, % of revenue | 0.2% | 0.4% | 2.5% | 1.7% | 0.7% | -1.1% |
| ROIC | -1.0% | -0.6% | -0.0% | 0.9% | -3.7% | -4.6% |
| ROE | 8.6% | 4.7% | 1.5% | 0.8% | -3.6% | -4.4% |
| Net Debt/EBITDA | | | -117.9x | -14.2x | | 14.2x |
Revenue and profitability
The company's Revenue dropped on 25.0% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 11.8 pp from 2.8% to -9.0% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue surged on 10.8 pp from 15.3% to 26.1% in 2015.
Net Income marign dropped on 10.6 pp from 1.6% to -9.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.68% in 2015. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 1.6%.
Return on investment
The company operates at negative ROIC (-3.68%) and ROE (-3.56%). ROIC decreased on 4.6 pp from 0.91% to -3.7% in 2015. ROE decreased on 4.4 pp from 0.81% to -3.6% in 2015.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 14.2x from -14.2x to in 2015. Debt dropped on 53.4% in 2015 while cash decreased on 4.5% in 2015.
Appendix 1: Peers in Media
Below you can find Beijing Media Corp 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% | 850.0% |
| SCMP Group Ltd ($583) | | 7.8% | 12.5% | -95.9% | 12.5% |
| Hong Kong Economic Times Holdings Ltd ($423) | | 5.6% | 2.7% | 3.1% | 5.3% |
| Modern Media Holdings ($72) | | 11.8% | -3.7% | -4.3% | -1.3% |
| Focus Media Network Ltd ($8112) | | -10.6% | 34.6% | 5.6% | -5.2% |
| |
|---|
| Median (18 companies) | 20.7% | 4.5% | -1.9% | -4.3% | -8.8% |
|---|
| Beijing Media Corp Ltd ($1000) | | -7.6% | -1.8% | 2.3% | -25.0% |
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% |
| Focus Media Network Ltd ($8112) | 81.0% | 68.0% | 67.2% | 50.8% | 57.6% |
| Television Broadcasts Ltd ($511) | 65.3% | 62.9% | 60.9% | 59.0% | 54.9% |
| One Media Group Ltd ($426) | 52.0% | 57.3% | 56.7% | 54.5% | 52.7% |
| Modern Media Holdings ($72) | 57.1% | 57.5% | 55.8% | 55.6% | 50.8% |
| |
|---|
| Median (15 companies) | 47.8% | 39.0% | 40.5% | 36.2% | 37.3% |
|---|
| Beijing Media Corp Ltd ($1000) | 10.9% | 8.8% | 12.3% | 19.7% | 19.4% |
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% |
| Media Chinese International Ltd ($685) | 20.0% | 20.0% | 18.3% | 18.1% | 16.5% |
| One Media Group Ltd ($426) | 14.4% | 18.7% | 23.0% | 22.8% | 15.2% |
| Phoenix Satellite Television Holdings Ltd ($2008) | 29.8% | 30.1% | 31.1% | 24.6% | 14.1% |
| Oriental Press Group ($18) | 20.6% | 9.5% | 12.8% | 14.6% | 13.9% |
| |
|---|
| Median (18 companies) | 15.1% | 12.9% | 11.6% | 12.5% | 9.8% |
|---|
| Beijing Media Corp Ltd ($1000) | -1.1% | -0.7% | 0.6% | 2.8% | -9.0% |
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% |
| Evergrande Health Industry Group Ltd ($708) | 58.0% | 14.6% | 2.4% | 2.9% | 13.5% |
| I-CABLE Communications Ltd ($1097) | 10.6% | 10.1% | 7.6% | 11.3% | 13.0% |
| Hong Kong Economic Times Holdings Ltd ($423) | 9.0% | 8.4% | 8.5% | 1.3% | 10.0% |
| Tom Group Ltd ($2383) | 10.0% | 11.9% | 8.4% | 9.4% | 9.5% |
| |
|---|
| Median (18 companies) | 4.6% | 3.9% | 5.3% | 2.9% | 6.5% |
|---|
| Beijing Media Corp Ltd ($1000) | 0.2% | 0.4% | 2.5% | 1.7% | 0.7% |
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% |
| Next Media Ltd ($282) | 1.7% | 8.5% | 6.7% | 8.2% | 6.8% |
| Modern Media Holdings ($72) | 23.8% | 20.6% | 10.4% | 9.3% | 5.5% |
| Hong Kong Economic Times Holdings Ltd ($423) | 23.3% | 11.5% | -1.5% | 3.2% | 5.2% |
| |
|---|
| Median (18 companies) | 9.8% | 5.6% | 5.1% | 2.6% | 1.7% |
|---|
| Beijing Media Corp Ltd ($1000) | -1.0% | -0.6% | -0.0% | 0.9% | -3.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tom Group Ltd ($2383) | | | | 8.1x | 16.7x |
| I-CABLE Communications Ltd ($1097) | -2.0x | -4.0x | -0.8x | 0.2x | 2.0x |
| One Media Group Ltd ($426) | -3.8x | -2.3x | -0.6x | -1.1x | 1.5x |
| Modern Media Holdings ($72) | -0.9x | -0.8x | -0.9x | 0.1x | 1.0x |
| Media Chinese International Ltd ($685) | -1.1x | -1.4x | 0.8x | 0.6x | 0.2x |
| |
|---|
| Median (12 companies) | -1.3x | -1.7x | -1.1x | -1.1x | -0.2x |
|---|
