Media Chinese International Ltd reports 29.1% EBITDA decline in 2016 and 18.6% Revenue decline
30/05/2016 • About Media Chinese International Ltd (
$685) • By InTwits
Media Chinese International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Media Chinese International Ltd is a company in decline: FY2016 revenue growth was -18.6%, 5 years revenue CAGR was -4.8%
- EBITDA Margin is declining: 14.3% in FY2016 vs. 16.5% in FY2015 vs. 20.0% in FY2012
- Media Chinese International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 15.6%.
- CAPEX is quite volatile: 2.8 in FY2016, 8.2 in FY2015, 10.8 in FY2014, 20.6 in FY2013, 7.2 in FY2012
- The company has business model with average profitability: ROIC is at 11.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Media Chinese International Ltd ($685) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 472.2 | 477.9 | 468.7 | 429.1 | 349.1 | -18.6% |
| Gross Profit | 186.7 | 188.7 | 183.1 | 165.5 | 133.5 | -19.3% |
| SG&A | 107.5 | 114.9 | 113.2 | 108.5 | 92.3 | -14.9% |
| EBITDA | 94.4 | 87.6 | 84.9 | 70.6 | 50.1 | -29.1% |
| Net Income | 63.2 | 56.7 | 48.2 | 31.4 | 26.6 | -15.2% |
Balance Sheet
|
|---|
| Cash | 134.7 | 101.8 | 102.9 | 118.6 | 141.0 | 18.8% |
| Short Term Debt | 5.3 | 170.7 | 12.8 | 9.6 | 58.5 | 507.0% |
| Long Term Debt | 0.0 | 0.0 | 137.8 | 121.5 | 57.7 | -52.5% |
Cash flow
|
|---|
| Capex | 7.2 | 20.6 | 10.8 | 8.2 | 2.8 | -65.8% |
Ratios
|
|---|
| Revenue growth | 5.9% | 1.2% | -1.9% | -8.4% | -18.6% | |
| EBITDA growth | 6.1% | -7.2% | -3.0% | -16.9% | -29.1% | |
| Gross Margin | 39.5% | 39.5% | 39.1% | 38.6% | 38.2% | -0.3% |
| EBITDA Margin | 20.0% | 18.3% | 18.1% | 16.5% | 14.3% | -2.1% |
| Net Income Margin | 13.4% | 11.9% | 10.3% | 7.3% | 7.6% | 0.3% |
| SG&A, % of revenue | 22.8% | 24.0% | 24.2% | 25.3% | 26.4% | 1.2% |
| CAPEX, % of revenue | 1.5% | 4.3% | 2.3% | 1.9% | 0.8% | -1.1% |
| ROIC | 18.6% | 17.8% | 18.4% | 15.6% | 11.1% | -4.5% |
| ROE | 15.6% | 18.3% | 22.7% | 14.7% | 12.6% | -2.1% |
| Net Debt/EBITDA | -1.4x | 0.8x | 0.6x | 0.2x | -0.5x | -0.7x |
Revenue and profitability
Media Chinese International Ltd's Revenue dropped on 18.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 82.0 pp from -63.6% to 18.4% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 1.2 pp from 25.3% to 26.4% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.81%. CAPEX/Revenue decreased on 3.5 pp from 4.3% in FY2013 to 0.81% in FY2016. For the last three years the average CAPEX/Revenue was 1.7%.
Return on investment
The company operates at good ROE (12.61%) while ROIC is low (11.13%). ROIC decreased on 4.5 pp from 15.6% to 11.1% in FY2016. ROE decreased on 2.1 pp from 14.7% to 12.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is 2.3x. Net Debt / EBITDA dropped on 0.7x from 0.2x to -0.5x in FY2016. Debt dropped on 11.4% while cash surged on 18.8%.
Appendix 1: Peers in Media
Below you can find Media Chinese International 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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) | 4.0% | -1.9% | -4.3% | -9.2% | |
|---|
| Media Chinese International Ltd ($685) | | 1.2% | -1.9% | -8.4% | -18.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| I-CABLE Communications Ltd ($1097) | 94.8% | 94.7% | 94.1% | 94.4% | |
| Focus Media Network Ltd ($8112) | 68.0% | 67.2% | 50.8% | 57.6% | |
| Television Broadcasts Ltd ($511) | 62.9% | 60.9% | 59.0% | 54.9% | |
| One Media Group Ltd ($426) | 57.3% | 56.7% | 54.5% | 52.7% | |
| Modern Media Holdings ($72) | 57.5% | 55.8% | 55.6% | 50.8% | |
| |
|---|
| Median (15 companies) | 37.5% | 39.5% | 36.1% | 35.7% | |
|---|
| Media Chinese International Ltd ($685) | 39.5% | 39.5% | 39.1% | 38.6% | 38.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SCMP Group Ltd ($583) | 23.5% | 20.5% | 218.1% | 193.5% | |
| One Media Group Ltd ($426) | 18.7% | 23.0% | 22.8% | 15.2% | |
| Phoenix Satellite Television Holdings Ltd ($2008) | 30.1% | 31.1% | 24.6% | 14.1% | |
| Oriental Press Group ($18) | 9.5% | 12.8% | 14.6% | 13.9% | |
| Next Media Ltd ($282) | 20.2% | 18.8% | 13.9% | 12.0% | |
| |
|---|
| Median (18 companies) | 9.9% | 11.5% | 9.8% | 8.9% | |
|---|
| Media Chinese International Ltd ($685) | 20.0% | 18.3% | 18.1% | 16.5% | 14.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SCMP Group Ltd ($583) | 7.0% | 5.3% | 52.2% | 85.2% | |
| Evergrande Health Industry Group Ltd ($708) | 14.6% | 2.4% | 2.9% | 13.5% | |
| I-CABLE Communications Ltd ($1097) | 10.1% | 7.6% | 11.3% | 13.0% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 8.4% | 8.5% | 1.3% | 10.0% | |
| Tom Group Ltd ($2383) | 11.9% | 8.4% | 9.4% | 9.5% | |
| |
|---|
| Median (18 companies) | 3.9% | 5.3% | 2.9% | 6.5% | |
|---|
| Media Chinese International Ltd ($685) | 1.5% | 4.3% | 2.3% | 1.9% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| One Media Group Ltd ($426) | 25.6% | 21.8% | 16.0% | 8.9% | |
| Next Media Ltd ($282) | 8.5% | 6.7% | 8.2% | 6.8% | |
| Modern Media Holdings ($72) | 20.6% | 10.4% | 9.3% | 5.5% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 11.5% | -1.5% | 3.2% | 5.2% | |
| Oriental Press Group ($18) | 2.5% | 4.0% | 4.5% | 4.0% | |
| |
|---|
| Median (18 companies) | 3.7% | 4.3% | 2.6% | 0.3% | |
|---|
| Media Chinese International Ltd ($685) | 18.6% | 17.8% | 18.4% | 15.6% | 11.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tom Group Ltd ($2383) | | | 8.1x | 16.7x | |
| I-CABLE Communications Ltd ($1097) | -4.0x | -0.8x | 0.2x | 2.0x | |
| One Media Group Ltd ($426) | -2.3x | -0.6x | -1.1x | 1.5x | |
| Modern Media Holdings ($72) | -0.8x | -0.9x | 0.1x | 1.0x | |
| Hong Kong Economic Times Holdings Ltd ($423) | -1.3x | -4.6x | -0.7x | -0.1x | |
| |
|---|
| Median (11 companies) | -1.9x | -1.5x | -1.5x | -0.3x | |
|---|
| Media Chinese International Ltd ($685) | -1.4x | 0.8x | 0.6x | 0.2x | -0.5x |
